DAL won't seek white knight

[FDJ2]

Reuters
Delta Air Lines won't seek white knight
Sunday November 19, 7:24 pm ET

LONDON (Reuters) - Bankrupt Delta Air Lines Inc. (Other OTC:DALRQ.PK - News) has "no plans" to seek a white knight and will instead produce a restructuring plan to counter a takeover bid by US Airways Group Inc. (NYSE:LCC - News), the carrier's chief financial officer told the Financial Times.
"We'll come out with a strong plan (in mid-December) that our creditors will view with much more confidence and certainty" than US Airways, Ed Bastian said in an interview published in the FT's Monday edition.
Bastian declined to flesh out details of the proposal but said there were "no plans" to woo a white knight or boost its balance sheet with capital from a stronger rival such as Air France KLM (Paris:AIRF.PA - News), according to the British newspaper.
He reiterated a report in The Wall Street Journal on Friday that the airline was focused on talks with key creditors.
"We are in deep discussions with a number of lenders who are anxious to finance our plan," Bastian told the FT.
US Airways proposed an $8 billion takeover of Delta on last Wednesday after an attempt at merger talks failed. US Airways, the No. 7 U.S. airline with over 35,000 employees, believes the combination will generate at least $1.65 billion in annual savings.
But Delta, the No. 3 U.S. airline with over 47,000 workers, has said it intends to emerge from bankruptcy as a stand-alone carrier.

 

[spinproof]

Reuters
Delta Air Lines won't seek white knight
Sunday November 19, 7:24 pm ET

LONDON (Reuters) - Bankrupt Delta Air Lines Inc. (Other OTC:DALRQ.PK - News) has "no plans" to seek a white knight and will instead produce a restructuring plan to counter a takeover bid by US Airways Group Inc. (NYSE:LCC - News), the carrier's chief financial officer told the Financial Times.
"We'll come out with a strong plan (in mid-December) that our creditors will view with much more confidence and certainty" than US Airways, Ed Bastian said in an interview published in the FT's Monday edition.
Bastian declined to flesh out details of the proposal but said there were "no plans" to woo a white knight or boost its balance sheet with capital from a stronger rival such as Air France KLM (Paris:AIRF.PA - News), according to the British newspaper.
He reiterated a report in The Wall Street Journal on Friday that the airline was focused on talks with key creditors.
"We are in deep discussions with a number of lenders who are anxious to finance our plan," Bastian told the FT.
US Airways proposed an $8 billion takeover of Delta on last Wednesday after an attempt at merger talks failed. US Airways, the No. 7 U.S. airline with over 35,000 employees, believes the combination will generate at least $1.65 billion in annual savings.
But Delta, the No. 3 U.S. airline with over 47,000 workers, has said it intends to emerge from bankruptcy as a stand-alone carrier.

My question is how long will it take DAL to ask the pilots for more concessions to fend off the menance?

Not to mention the "bidding war" that is right around the corner.....AA and UAL have too much to loose to let this go by....then there is CAL,NW.....Grinchstein and the boys better have the wagons circled and plenty of provissions because it's gonna get uglier!

Getting a commitment from the Stake holders is the first step, without their support you'll become a rudderless vessel searching for any port.

 

[On Your Six]

Reuters
Delta Air Lines won't seek white knight
Sunday November 19, 7:24 pm ET

LONDON (Reuters) - Bankrupt Delta Air Lines Inc. (Other OTC:DALRQ.PK - News) has "no plans" to seek a white knight and will instead produce a restructuring plan to counter a takeover bid by US Airways Group Inc. (NYSE:LCC - News), the carrier's chief financial officer told the Financial Times.
"We'll come out with a strong plan (in mid-December) that our creditors will view with much more confidence and certainty" than US Airways, Ed Bastian said in an interview published in the FT's Monday edition.
Bastian declined to flesh out details of the proposal but said there were "no plans" to woo a white knight or boost its balance sheet with capital from a stronger rival such as Air France KLM (Paris:AIRF.PA - News), according to the British newspaper.
He reiterated a report in The Wall Street Journal on Friday that the airline was focused on talks with key creditors.
"We are in deep discussions with a number of lenders who are anxious to finance our plan," Bastian told the FT.
US Airways proposed an $8 billion takeover of Delta on last Wednesday after an attempt at merger talks failed. US Airways, the No. 7 U.S. airline with over 35,000 employees, believes the combination will generate at least $1.65 billion in annual savings.
But Delta, the No. 3 U.S. airline with over 47,000 workers, has said it intends to emerge from bankruptcy as a stand-alone carrier.

The fact that the media is still so positive about this potential merger is laughable... Just shows how little they know about the airline business - they group it with every other business out there. But, fundamentally it is very different. Merger integration is always problematic which can directly impact service levels and eventually revenues. In this case, the route networks almost completely overlap - just look at their route maps with hubs. Its Southeast, Northeast and Southwest/Utah centric. I am sure the DOJ won't care for that... USAirways brings nothing to the table in terms of lucrative international routes to exploit.

And yet the media focuses on the dollar amount as though Delta's creditors would be crazy to pass it up... Well, Delta is trending very nicely as it restructures ($50 million net last quarter) and the addition of more and more international routes to milk over time. I have read that Delta plans to simplify its fleet to 737s (700s, 800s and maybe 900s), 777s and 787s over the long term with 757s/767s exiting over the next decade or so. Sure, everyone suffered post 9/11 and Delta lost billions and billions. Well, this restructuring in addition to the improving economy has helped considerably. Delta is laying the foundation for success from what I have seen and merging with USAirways (currently has its own integration issues) doesn't make a lot of sense despite what the investment bankers say. Sure, anything can happen, but there are a lot of big hurdles out there that the media conveniently FORGETS...

 

[GogglesPisano]

As I've said on another thread: These media pundits have not studied their airline history.

 

[GOTAFLY]

YA I agree with "On Your Six" nobody knows what there talking about, just ask him, he is an Airline pilot. I vote for "ON YOUR SIX" for president

 

[G4G5]

The fact that the media is still so positive about this potential merger is laughable... Just shows how little they know about the airline business - they group it with every other business out there. But, fundamentally it is very different. Merger integration is always problematic which can directly impact service levels and eventually revenues. In this case, the route networks almost completely overlap - just look at their route maps with hubs. Its Southeast, Northeast and Southwest/Utah centric. I am sure the DOJ won't care for that... USAirways brings nothing to the table in terms of lucrative international routes to exploit.

And yet the media focuses on the dollar amount as though Delta's creditors would be crazy to pass it up... Well, Delta is trending very nicely as it restructures ($50 million net last quarter) and the addition of more and more international routes to milk over time. I have read that Delta plans to simplify its fleet to 737s (700s, 800s and maybe 900s), 777s and 787s over the long term with 757s/767s exiting over the next decade or so. Sure, everyone suffered post 9/11 and Delta lost billions and billions. Well, this restructuring in addition to the improving economy has helped considerably. Delta is laying the foundation for success from what I have seen and merging with USAirways (currently has its own integration issues) doesn't make a lot of sense despite what the investment bankers say. Sure, anything can happen, but there are a lot of big hurdles out there that the media conveniently FORGETS...

Delta didn't bring a whole lot to the table when they aquired PanAm's intl routes. Usair has as much if not more intl presence then DAL did back in 1991

 

[General Lee]

My question is how long will it take DAL to ask the pilots for more concessions to fend off the menance?

Not to mention the "bidding war" that is right around the corner.....AA and UAL have too much to loose to let this go by....then there is CAL,NW.....Grinchstein and the boys better have the wagons circled and plenty of provissions because it's gonna get uglier!

Getting a commitment from the Stake holders is the first step, without their support you'll become a rudderless vessel searching for any port.

We are one of the largest creditors on the Creditor Committee. They had best be nice to us. They still owe us $2.1 billion on the pension. The other members include Boeing, Coke, Pratt, and Fidelity, and a couple lessors. They will be asking us for our help.

Bye Bye--General Lee

 

[General Lee]

YA I agree with "On Your Six" nobody knows what there talking about, just ask him, he is an Airline pilot. I vote for "ON YOUR SIX" for president

I vote you best speller of the year.

Bye Bye--General Lee

 

[densoo]

Nothing like the threat of losing your multimillion dollar job to focus the mind on getting off your duff and start moving forward.

NEW YORK, Nov 20 (Reuters) - Bankrupt Delta Air Lines said on Monday it plans to recall about 700 maintenance employees from mid-December, on top of the 200 or so previously furloughed maintenance workers it has recalled over the past few months.

http://yahoo.reuters.com/news/artic...11-20_14-42-51_WNAS3931&type=comktNews&rpc=44

 

[Saabslime]

In this case, the route networks almost completely overlap - just look at their route maps with hubs. Its Southeast, Northeast and Southwest/Utah centric.

That's exactly where a lot of the savings from merging the two would come from. Cut out excess capacity all while gaining a larger market share with better pricing leverage. This deal isn't nearly as "laughable" as you might think....

 

[800Dog]

Delta didn't bring a whole lot to the table when they aquired PanAm's intl routes. Usair has as much if not more intl presence then DAL did back in 1991

Wrong. Delta had a very strong domestic route structure. Pan Am did not. Again, USAir has nothing to offer Delta.

 

[SWAdude]

Wrong. Delta had a very strong domestic route structure. Pan Am did not. Again, USAir has nothing to offer Delta.

Except cash.

This has a greater likelyhood of going through than not.

 

[800Dog]

Except cash.

This has a greater likelyhood of going through than not.

Again, USAir has no more cash on hand than Delta. It is the banks who have the cash, not USair. A greater likelyhood of going through? You base that assumption on what? Noone on this board, myself included, has any idea if this will go through. Myself, and many others think it is a terrible fit as USAir brings nothing to the table that Delta needs, such as pacific routes.

 

[On Your Six]

YA I agree with "On Your Six" nobody knows what there talking about, just ask him, he is an Airline pilot. I vote for "ON YOUR SIX" for president

I know this business better than most members of the media. What's your contribution to this discussion beyond being a jacka$$? How about an opinion or is that too difficult to provide? This is a public forum for discussion - right?

 

[PHXFLYR]

That's exactly where a lot of the savings from merging the two would come from. Cut out excess capacity all while gaining a larger market share with better pricing leverage. This deal isn't nearly as "laughable" as you might think....

Cut out that excess capacity and pilot furloughs are sure to follow...dontcha think?


PHXFLYR

 

[737 Pylt]

Cut out that excess capacity and pilot furloughs are sure to follow...dontcha think?


PHXFLYR

(Turn on sarcasm)

Oh come on, didn't Parker promise "no furloughs" as a result of this wonderful new big airline!

737

 

[PHXFLYR]

Again, USAir has no more cash on hand than Delta. It is the banks who have the cash, not USair. A greater likelyhood of going through? You base that assumption on what? Noone on this board, myself included, has any idea if this will go through. Myself, and many others think it is a terrible fit as USAir brings nothing to the table that Delta needs, such as pacific routes.

Nor does Delta bring much USAir's way, either. Delta's JFK international service is vulnerable to an onslaught by AMR's JFK operation which is quite extensive both in terms of domestic and international service. And don't forget,when they "purchased" TWA several years ago,that included alot of
international landing rights that TWA had but were not using at the time.


PHXFLYR

 

[MCDU]

That's exactly where a lot of the savings from merging the two would come from. Cut out excess capacity all while gaining a larger market share with better pricing leverage. This deal isn't nearly as "laughable" as you might think....

Very well said. I agree. Could not have summoned it up better.

Cheers

 

[800Dog]

Nor does Delta bring much USAir's way, either. Delta's JFK international service is vulnerable to an onslaught by AMR's JFK operation which is quite extensive both in terms of domestic and international service. And don't forget,when they "purchased" TWA several years ago,that included alot of
international landing rights that TWA had but were not using at the time.


PHXFLYR

You are kidding right. Lets see. Delta is the largest carrier across the Atlantic. USAir is not a player to Europe. Delta is a player in Central and S. America. USAir is not. Delta is currently recalling employees and looking to hire off the street in the near future. USAir has pilots on furlough with what, 1990 hire dates? We must be talking about different airlines.

 

[PHXFLYR]

(Turn on sarcasm)

Oh come on, didn't Parker promise "no furloughs" as a result of this wonderful new big airline!


737

Read the fine print,my man. He said ,and I quote from the Nov 15th issue of his little in house rag "About US";first sentence in the 2nd paragraph:

"The Delta merger model/projections assume no furloughs for mainline
operating groups or for wholly owned susidiary groups at this time. If
there were layoffs in union represented groups ,they would occur
as required by labor agreements."

I don't trust much of what Parker has to say anymore and take what he does have to say with a grain of salt..and a very large grain at that!!:erm:


PHXFLYR

 

[MCDU]

USair is a player to Europe. Lets see.
Madrid
Stockholm
Amsterdam
Frankfurt
Munich
Venice
Barcelona
Rome
London
Glasgow
Dublin
Lisabon
Coming soon
Athens, Zurich and Brussels next spring
There might be more. That was one on the assets United liked about USair, when we tried to merge.

Marty

 

[PHXFLYR]

You are kidding right. Lets see. Delta is the largest carrier across the Atlantic. USAir is not a player to Europe. Delta is a player in Central and S. America. USAir is not. Delta is currently recalling employees and looking to hire off the street in the near future. USAir has pilots on furlough with what, 1990 hire dates? We must be talking about different airlines.

Yup...same can be said for Pan Am . You do remember Pan Am,don't you?
The airline conviently dismantled in 1991 by whom? Oh,yeah...Delta. Imagine that!! They went all over the world,too. Fat lot of good it did them..... And if I remember,when you guys came on the scene,Delta wasn't exactly a globe trotting airline either. I should know. My wife's a Delta employee and has been since the late 80's and was there when all that occured. But before this thread descends into another epic Flt info pissin' match,lets keep in mind it doesn't matter want you, me,the unions, Parker or Grinstein have to say. What it's going to come down to is wha the banks and the unsecured creditors decide. I just hope the 2.1 billion dollar stake in that committee
that you guys have is enough to sway the vote and allows Delta to emerge from Chapter 11 as a stand alone company......Good luck:beer:



PHXFLYR

 

[General Lee]

Nor does Delta bring much USAir's way, either. Delta's JFK international service is vulnerable to an onslaught by AMR's JFK operation which is quite extensive both in terms of domestic and international service. And don't forget,when they "purchased" TWA several years ago,that included alot of
international landing rights that TWA had but were not using at the time.


PHXFLYR

You're joking, right?

Bye Bye--General Lee

 

[PHXFLYR]

Myself, and many others think it is a terrible fit as USAir brings nothing to the table that Delta needs, such as pacific routes.[/quote]


Something Delta doesn't bring to the table,either.


PHXFLYR

 

[General Lee]

Yup...same can be said for Pan Am . You do remember Pan Am,don't you?
The airline conviently dismantled in 1991 by whom? Oh,yeah...Delta. Imagine that!! They went all over the world,too. Fat lot of good it did them..... And if I remember,when you guys came on the scene,Delta wasn't exactly a globe trotting airline either. I should know. My wife's a Delta employee and has been since the late 80's and was there when all that occured. But before this thread descends into another epic Flt info pissin' match,lets keep in mind it doesn't matter want you, me,the unions, Parker or Grinstein have to say. What it's going to come down to is wha the banks and the unsecured creditors decide. I just hope the 2.1 billion dollar stake in that committee
that you guys have is enough to sway the vote and allows Delta to emerge from Chapter 11 as a stand alone company......Good luck:beer:



PHXFLYR

Well, according to our CFO, we(DALPA) are the largest unsecured creditor on the Creditor Committee, and some others (9 total) include Boeing,(wants to keep us a Boeing customer), Coke (based in ATL), Pratt (our 757s have Pratt engines, yours have Rolls), the PBGC (a deal is being made right now with them), and Fidelity. (we have a good relationship with them) Other creditors on the committee are a couple lessors and a bank. We actually consulted with them when Parker wrote Grinstein a couple months ago, and supposedly they all AGREED not to do it back then. It is a bad deal, with hubs too close, fleets not matched, and your own current merger integration is going nowhere fast. Even the new head of the Transportation sub committee stated the USAir bid was "nonsense." We'll see......


Bye Bye--General Lee

 

[PHXFLYR]

You're joking, right?

Bye Bye--General Lee

Wish I were........ don't ever ever underestimate the visciosuness of AMR and American Airlines should they decide to launch a competitive response. I should know. My Dad is a retired 33 year American employee and we saw this many times during the course of his career there . They are a ruthless competitor (ask any original Braniff pilot if you don't believe me) and have a hell of a product. Not only that it has 3 gems in their international network that is unfortunatly missing from both Delta's and USAir's; Bejing, London Heathrow,(not Gatwick,General ) and Tokyo. I feel that to be an all encompassing international network airline you must have access to as much international markets you can lay your hands on plus those 3 . If not, then "you ain't sheit"as far as international airlines go...but then again what do I know. I'm just a "lil' ol' stick and rudder guy" just trying to get by...


PHXFLYR

 

[General Lee]

Myself, and many others think it is a terrible fit as USAir brings nothing to the table that Delta needs, such as pacific routes.

Something Delta doesn't bring to the table,either.


PHXFLYR[/quote]

Well, we have had 777 service to NRT from ATL for years, and we are adding ATL-ICN (Seoul) in the Spring. We supposedly will add more, probably from LAX, in the future.

Bye Bye--General Lee

 

[PHXFLYR]

Something Delta doesn't bring to the table,either.


PHXFLYR

Well, we have had 777 service to NRT from ATL for years, and we are adding ATL-ICN (Seoul) in the Spring. We supposedly will add more, probably from LAX, in the future.

Bye Bye--General Lee[/quote]




Yeah,but you have to admit,those markets,while good, aren't exactly the plums that Bejing and Tokyo are. By the way, why LAX instead of ATL??

PHXFLYR

 

[General Lee]

Well, we have had 777 service to NRT from ATL for years, and we are adding ATL-ICN (Seoul) in the Spring. We supposedly will add more, probably from LAX, in the future.

Bye Bye--General Lee

Yeah,but you have to admit,those markets,while good, aren't exactly the plums that Bejing and Tokyo are. By the way, why LAX instead of ATL??

PHXFLYR[/quote]

We are getting 2 777LRs before the Beijing Olympics, and Grinstein says he is "very sure" we are getting slots in 2008 for ATL--Beijing nonstop. Our ATL-ICN service is to help our Skyteam connections with Korean Airlines, and their daily 744 service from ATL to ICN is one of their most profitable. They have many connections all over Asia, and our 777 will help feed them. As far as LAX goes, our new guy in charge of Marketing and new routes (he's been busy as of late---50 new INTL routes in a year) thinks LAX still has room for more routes, and we are adding new Mexico routes there as we speak. We have the room in Terminal 5 since Air France moved their flights to Terminal 2. We have heard rumors of eventual Australia service (maybe thru Hawaii) too.

Bye Bye--General Lee

 

[PHXFLYR]

Well, according to our CFO, we(DALPA) are the largest unsecured creditor on the Creditor Committee, and some others (9 total) include Boeing,(wants to keep us a Boeing customer), Coke (based in ATL), Pratt (our 757s have Pratt engines, yours have Rolls), the PBGC (a deal is being made right now with them), and Fidelity. (we have a good relationship with them) Other creditors on the committee are a couple lessors and a bank. We actually consulted with them when Parker wrote Grinstein a couple months ago, and supposedly they all AGREED not to do it back then. It is a bad deal, with hubs too close, fleets not matched, and your own current merger integration is going nowhere fast. Even the new head of the Transportation sub committee stated the USAir bid was "nonsense." We'll see......


Bye Bye--General Lee

Yes we will. Here's hoping you guys can see all this through and remain independent. It's nothing personel. Delta is a fine airline (at least that's what my wife tells me every chance she gets!! ). It's just that I want to see some of the wind taken out of Parker's sails. Cheers.....and have a nice
Thanksgiving.


PHXFLYR