Comair IPO

[comrcap]

You heard it here first. Comair will be spun off in a partial IPO AKA COEX. DAL will use proceeds for debt reduction and use shares as capital with the likes of GECAS and EMBRAER for A/C deposits. EMB 190 is the likely target along with CRJ 705. This will happen post BK at DAL as Scope will fade, as it should. COMR shall rise again! And this boat anchor called DAL will be separated from our truly excellent balance sheet. Buy COMR on dips as it will trade in a violent manner with an upside bias. Also bring back Chuck in marketing! He ran circles around his peers!

 

[General Lee]

You heard it here first. Comair will be spun off in a partial IPO AKA COEX. DAL will use proceeds for debt reduction and use shares as capital with the likes of GECAS and EMBRAER for A/C deposits. EMB 190 is the likely target along with CRJ 705. This will happen post BK at DAL as Scope will fade, as it should. COMR shall rise again! And this boat anchor called DAL will be separated from our truly excellent balance sheet. Buy COMR on dips as it will trade in a violent manner with an upside bias. Also bring back Chuck in marketing! He ran circles around his peers!

Really? That's not what Grinstein said at Incommand two weeks ago. Something more like up to 100 of your RJs may be parked since GE has been ramming them down our throat due to their financing agreement. He also said he may add first class on some of your CR7s. That sounds more plausible. Then maybe Mesa will buy what is left. I bet those DL managers are still thinking about that strike of yours. Tootles.


Bye Bye--General Lee

 

[bvt1151]

I agree about Chuck...but the rest is just a pipe dream. Comair will never be completely independent of Delta, and an IPO is an absolute best case scenario. More likely, we will be bought by several investors, one being Mesa.

If Comair had its own stock, it would never do as well as it did. Those types of prorate agreements with mainline carriers are a thing of the distant past.

No credibile evidence of your claim.

 

[comrcap]

Dang! That was a quick response General! Do you morons actually believe everything you hear from MGMT!? This is not a "I heard it from so and so" statement. DAL is still paying lease payments on DOJETS collecting dust! When you BOZO'S go BK, the Judge and Creditors will call the shots and I believe this is the likely outcome for Comair. It is the BEST way to MAXIMIZE the value of Comair to the benefit of DAL. Whereas ASA's sale is a fart in the wind to reduce DAL debt, the IPO of COMR is more like an ANNUITY. The more they grow COMR the more the value of the remaining shares that DAL retains. You do know that one of the first things CAL did with the proceeds of the IPO of COEX was to fund the pension of the mainline pilots?

 

[chperplt]

DAL is still paying lease payments on DOJETS collecting dust!

Isn't Mesa paying those leases?

 

[bvt1151]

The more they grow COMR the more the value of the remaining shares that DAL retains. You do know that one of the first things CAL did with the proceeds of the IPO of COEX was to fund the pension of the mainline pilots?

I don't agree with the General's take, but your's is just as extreme, just on the other end of the scale. You have to make one major distinction betweein Coex and us; Continental was not in bankruptcy when they IPO'd Coex. That meant they were able to get a much better price than we'd ever get, even though it wasn't that great.

Comair is worth about 500-700 million to Delta. If an investor provides financing worth $501-$701 million, it takes precidence over Comair. Delta will not get $500 million out of a Comair IPO either. The only way they'll realize that is if they sell us to financing firms with agreements intact.

 

[arthompson]

Mesa is paying the 328 Leases as part of the DL Conx agreement

 

[atrdriver]

Comair is worth about 500-700 million to Delta. If an investor provides financing worth $501-$701 million, it takes precidence over Comair. Delta will not get $500 million out of a Comair IPO either. The only way they'll realize that is if they sell us to financing firms with agreements intact.

And, just like ASA, you aren't worth anything without a long term agreement from a major to provide lift. Without that all you are is a company with a bunch of RJ's that no one wants. You have made money, as has ASA, from your fee for departure agreement with DAL, which is how they paid both before and after you were bought. Want to try it alone? Maybe you had better take a good long look at ACA before you jump off that cliff.

 

[spinproof]

Really? That's not what Grinstein said at Incommand two weeks ago. Something more like up to 100 of your RJs may be parked since GE has been ramming them down our throat due to their financing agreement. He also said he may add first class on some of your CR7s. That sounds more plausible. Then maybe Mesa will buy what is left. I bet those DL managers are still thinking about that strike of yours. Tootles.


Bye Bye--General Lee

Yeah I bet those same managers are kicking themselves in the butt for paying you 30% more than they had to for years!!! Don't be so giddy at someones pending future. It just might not work out the way you wish! The road to recovery is one step at a time. You might want to consider that an IPO would be in YOUR best interest also!

 

[comrcap]

And part of the MESA deal is that the DOJET deal is void in BK. And as far as an IPO, whatever COMR realizes, holding back shares is a way of maximizing value. Consider this. These are the same boneheads that lifted their fuel hedges BEFORE they used their fuel. This contradicts the fundamental tenents of commodity hedging. And that is, Lift the hedge when you buy/sell the product. They tried to "leg out of their hedge" and got caught in the switches. DAL risk MGMT took it in the shorts.

 

[chperplt]

If they file BK, the lease payments go away period... Not really a big issue..

You stated that DAL was paying them while they collected dust, and that is incorrect.

 

[General Lee]

Yeah I bet those same managers are kicking themselves in the butt for paying you 30% more than they had to for years!!! Don't be so giddy at someones pending future. It just might not work out the way you wish! The road to recovery is one step at a time. You might want to consider that an IPO would be in YOUR best interest also!

I think it would, but I don't see an IPO happening. I see this all happening in the very near future, and may be donw in court. If that is the case, then we ALL will take pay cuts, and then Comair may have some major changes. We also will probably accelerate the fleet simplification--with the parking of unprofitable aircraft, like the 732/733 and 762. Comair may lose a bunch of RJs that we don't want. Do I sound giddy at the prospect of another pay cut? Nope. Did we deserve the 30% raise we got in the C2K contract? Sure, at the time we thought we could afford it. With gas this high, we can't afford a lot of things right now, including Comair's rates. (compared to the rest of the regionals) That is the way it goes, unfortunately. We all will pay.


Bye Bye--General Lee

 

[General Lee]

And part of the MESA deal is that the DOJET deal is void in BK. And as far as an IPO, whatever COMR realizes, holding back shares is a way of maximizing value. Consider this. These are the same boneheads that lifted their fuel hedges BEFORE they used their fuel. This contradicts the fundamental tenents of commodity hedging. And that is, Lift the hedge when you buy/sell the product. They tried to "leg out of their hedge" and got caught in the switches. DAL risk MGMT took it in the shorts.

Our CFO sold the fuel hedges for an $83 million profit, which resulted in an extra loss of $632 million for that year. She then took her retention bonus, and went to an engery company based in ATL already in Chap 11, and 6 months later petitioned the court for bonuses for management at that company while in bankruptcy.


Bye Bye--General Lee

 

[comrcap]

there is no profit in hedging by definition. They took their eye off the ball and thought they were smarter than the market. She cost DAL 800 mil+

 

[twobits]

i believe they entered into heating oil futures instead of jet A, citing a beter market. I do not think that Comair RJ's will be going away anytime soon, that is, if Delta wants to fill its big planes out of JFK, BOS, CVG, MCO and if they want to make a profit out of routes into places such as LGA that bigger airplanes are not able to handle. Comair was #3 in on time performance for may and June and they fly into high density airports often. Why would Delta want to stifle such an assett? Where was ASA? toward the bottom.... so you make the call mr. manager, who do you sell and who do you keep? I bet Delta will post an operating profit for this quarter, even with fuel sky high..... that does not mean they are out of the woods over the next two quarters so something more will have to be done.

 

[DGdaPilot]

I think there is some insight to the initial post in this thread. The man's right, everyone on Flightinfo heard it here first. But everyone at Comair should already have an idea of what the upcoming days will bring. It's quite exciting, actually.

 

[737 Pylt]

Yeah I bet those same managers are kicking themselves in the butt for paying you 30% more than they had to for years!!!

Well said! I never understood how mismanagement didn't act more aggressive like AMR!

Don't be so giddy at someones pending future. It just might not work out the way you wish! The road to recovery is one step at a time. You might want to consider that an IPO would be in YOUR best interest also!

I agree as well with finding joy in someone's demise! The cmr folks(not all, but some) have been giddy over the fact that we have been furloughing and they have been hiring over the past. I don't believe, however, that an IPO is the answer to our problem. cmr's rj's are carrying an enourmous amount of debt and when they are sold to mesa (like we have been hearing) I just hope that their debt goes with them.
just my .02
737

 

[chperplt]

The cmr folks(not all, but some) have been giddy over the fact that we have been furloughing and they have been hiring over the past

Where have you heard this giddiness? I'm sure there are a couple boneheads that think like this, but I don't believe the majority of CMR pilots have ever even thought this.

In the year and a half I was at CMR, I never heard anyone "happy" that DAL had guys on the street. Making fun of your constant wind checks, now that's another story.

Good luck to all!

 

[BenderGonzales]

Will your fuzzy mascot R.Jay be spun off as well? Does he have a future on Sesame Street? Fraggle Rock? Muppet Show - The Next Generation?

 

[bvt1151]

I agree as well with finding joy in someone's demise! The cmr folks(not all, but some) have been giddy over the fact that we have been furloughing and they have been hiring over the past.

In journalism, this is called "spin," or more specifically "downright false." I have never ever heard of a Comair pilot or any other pilot happy that a Delta pilot was furloughed. If you're looking for someone to direct your frustration at, turn to that big building in Atlanta with the widget on it.