JoeMerchant
ASA pilot
- Joined
- Mar 31, 2005
- Posts
- 6,353
"ASA has no value whatsoever except for its revenue stream which comes from Delta,"
"ASA has no value whatsoever except for its revenue stream which comes from Delta,"
[font=verdana, arial, helvetica]ASA CEO departure fuels speculation on Delta asset sale
Friday August 12, 2005
Atlantic Southeast Airlines President William "Skip" Barnette is leaving to assume the top job at a small Ft. Lauderdale-based airline company, increasing speculation that the Delta Air Lines Regional subsidiary soon will be sold to provide cash to its struggling parent.Barnette, a 35-year veteran of Delta, will become president and CEO of twin carriers Caribbean Star and Caribbean Sun on Sept. 1. The privately held airlines serve 17 destinations in the Caribbean.
Analysts have viewed a sale of either ASA or Comair or both as a likely step for Delta, which is trying to avoid bankruptcy. Delta officials declined to comment yesterday on Barnette's departure or a pending sale. Atlanta-based ASA operates a fleet of 144 aircraft on more than 900 daily departures in the Delta Connection feeder network.
"Skip's decision was based on his own career decisions," ASA spokesperson Gina Pesko Laughlin told ATWOnline. "We can't comment on market rumors or speculation." Laughlin herself is leaving ASA for Delta's corporate offices next week.
St. George, Utah-based SkyWest Airlines, a publicly traded Delta Connection partner with $550 million in cash and a fleet of 221 aircraft, long has been touted as ASA's most likely acquisitor. SkyWest also flies in the United Express network.
Doug Abbey, an analyst with Velocity Group, told ATWOnline: "This is something they were talking about and thinking about and they would probably rather do it sooner than later."
Mike Boyd of The Boyd Group questioned the rationale, however. "ASA has no value whatsoever except for its revenue stream which comes from Delta," he said. "Every dime they make comes from Delta and Delta isn't making any money." Boyd also cited the challenge of combining cultures. For example, ASA pilots are unionized, while SkyWest pilots repeatedly have spurned union overtures. "We continue to look at opportunities," said SkyWest spokesperson Sabrena Suite. "Nothing is set in stone."
by Sandra Arnoult[/font]
"ASA has no value whatsoever except for its revenue stream which comes from Delta,"
[font=verdana, arial, helvetica]ASA CEO departure fuels speculation on Delta asset sale
Friday August 12, 2005
Atlantic Southeast Airlines President William "Skip" Barnette is leaving to assume the top job at a small Ft. Lauderdale-based airline company, increasing speculation that the Delta Air Lines Regional subsidiary soon will be sold to provide cash to its struggling parent.Barnette, a 35-year veteran of Delta, will become president and CEO of twin carriers Caribbean Star and Caribbean Sun on Sept. 1. The privately held airlines serve 17 destinations in the Caribbean.
Analysts have viewed a sale of either ASA or Comair or both as a likely step for Delta, which is trying to avoid bankruptcy. Delta officials declined to comment yesterday on Barnette's departure or a pending sale. Atlanta-based ASA operates a fleet of 144 aircraft on more than 900 daily departures in the Delta Connection feeder network.
"Skip's decision was based on his own career decisions," ASA spokesperson Gina Pesko Laughlin told ATWOnline. "We can't comment on market rumors or speculation." Laughlin herself is leaving ASA for Delta's corporate offices next week.
St. George, Utah-based SkyWest Airlines, a publicly traded Delta Connection partner with $550 million in cash and a fleet of 221 aircraft, long has been touted as ASA's most likely acquisitor. SkyWest also flies in the United Express network.
Doug Abbey, an analyst with Velocity Group, told ATWOnline: "This is something they were talking about and thinking about and they would probably rather do it sooner than later."
Mike Boyd of The Boyd Group questioned the rationale, however. "ASA has no value whatsoever except for its revenue stream which comes from Delta," he said. "Every dime they make comes from Delta and Delta isn't making any money." Boyd also cited the challenge of combining cultures. For example, ASA pilots are unionized, while SkyWest pilots repeatedly have spurned union overtures. "We continue to look at opportunities," said SkyWest spokesperson Sabrena Suite. "Nothing is set in stone."
by Sandra Arnoult[/font]