Asa Sold By Delta

eagle1983

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I used to work for ASA as a Ramp Agent in Tulsa. Although the prospect of any of the Delta Connection carriers getting boght and sold was probable no one (at the time) thought it would ever happen. What prompted Delta to sell ASA and yet still have them fly their routes? Wouldn't they make more money just by having them stay in the Delta family in stead of a contract carrier?:confused:
 

WIPilot

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They did it to boost their liquidity...ie more cash for them to pay down debts and to use to either prevent or to go into bankruptcy.

Though one thing to consider is they bought ASA for 700 mil (or around there)...and now are selling it for 400 :eek: owch...
 

G200_PILOT

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Why do they need the cow if they get the milk either way?
 

bafanguy

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netjets_pilot said:
Why do they need the cow if they get the milk either way?
That's exactly what Grinstein said, in other words, on the two occasions where I heard him speak on this issue. DL doesn't need to own ASA or CA to get the benefit of their feed. That can be arranged by contractual agreement. If someone would buy CA, they'd be gone by now too. Word from the inside ? Nobody wants 'em.

As for the money coming from the ASA sale, it's spitting in the ocean of DL's debt problems. That money will be gone before it even arrives in DL's pocket.

Maybe I'll get another retirement check or two because of the ASA thing, but I doubt it.
 

Erlanger

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Though one thing to consider is they bought ASA for 700 mil (or around there)...and now are selling it for 400 :eek: owch...Not so sure who this deal was good or bad for. I understand that ASA has quite a bit more debt (many times more) then when Delta first bought it, so it might not be as good a deal for Skywest as one might think. Anyone know any of the details?
 

bafanguy

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Erlanger said:
Though one thing to consider is they bought ASA for 700 mil (or around there)...and now are selling it for 400 :eek: owch...

Not so sure who this deal was good or bad for. I understand that ASA has quite a bit more debt (many times more) then when Delta first bought it, so it might not be as good a deal for Skywest as one might think. Anyone know any of the details?
Erlanger,

Both cases are fire sales...no doubt about it. What they cost to start with ? Not a factor.
 
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