Delta Air Lines buys 49 percent of Virgin Atlantic for $360 million

[GogglesPisano]

Not really. Sections 1.E.8. and 1.E.9 were modified in our new contract to address that concern.

I covered 1.E.8 in my statement. 1.E.9 will be up to the negotiators. Frankly, I wasn't impressed with the Virgin Australia agreement, since Virgin Australia can now increase their flying to the US by a third, without any requirement for DL to increase ours.

 

[redflyer65]

Hmmmmm. Maybe you didn't see the new contract. Get rid of 200+ 50 seat RJs, buy 70 76 seaters (the 40 recently bought were a part of that), and then add 88 717s to take over current 76 seater routes. What I stated was DL wants out of OWNING REGIONAL AIRLINES. They do own some RJs though, and offer them to the lowest cost provider. DL used to own ASA and Comair, but do not now.....


Bye Bye---General Lee

Haha. Do your believe your own crap General? Just making up your own facts to fit your agenda. Those RJs were gone ANYWAY! You guys just saw a few extra dollars and then said 'Sure, larger RJs sound GREAT, when do we get the bigger checks that are closer to SW pay?'

Completely played by DL management. At least some like Bill understands that on here. I think he has a valid concern with this new VA agreement as well. Time will tell.

 

[General Lee]

I covered 1.E.8 in my statement. 1.E.9 will be up to the negotiators. Frankly, I wasn't impressed with the Virgin Australia agreement, since Virgin Australia can now increase their flying to the US by a third, without any requirement for DL to increase ours.

That is true. Hopefully Dalpa will be more "giving" on the Virgin Atlantic JV. I think the V Australian JV has more options for V Australia, but I think DL could have snuck a 777 to Melbourne etc. Maybe the new regime at Dalpa will take a tougher stance towards more equal participation on this next JV. It's all up to those negotiations.


Bye Bye---General Lee

 

[General Lee]

Haha. Do your believe your own crap General? Just making up your own facts to fit your agenda. Those RJs were gone ANYWAY! You guys just saw a few extra dollars and then said 'Sure, larger RJs sound GREAT, when do we get the bigger checks that are closer to SW pay?'

Completely played by DL management. At least some like Bill understands that on here. I think he has a valid concern with this new VA agreement as well. Time will tell.

My own agenda? Can you normally get out of leases from planes that are leaving the industry? No, the manufactures want them paid for as long as possible before they go to the boneyard. You know that Red. They were going to all stick around until the end, over 300 until 2015, with or without the mx. The deal gave the manufacture an out, 70 new to take a bunch away from us. Also, having them stick around longer ment more seats in the system than needed, hence no need for your 717s. So, we got a fantastic deal from you guys on the 717s, and made sure the overall RJ number was decreased significantly. That was a good deal indeed.



Bye Bye---General Lee

 

[jonjuan]

Hopefully Dalpa......I think ...... but I think ........... Maybe the new regime at Dalpa will take a tougher stance


Bye Bye---General Lee

There's your problem. Living in a fantasy world in cell block D. Hey, at least you can smile while Bubba massages your shoulders in the shower room.

 

[General Lee]

There's your problem. Living in a fantasy world in cell block D. Hey, at least you can smile while Bubba massages your shoulders in the shower room.

You can't come up with anything original, like your prison slams. But, it is place you know well, with your partner, Uncle Sal. Good try loser.


Bye Bye---General Lee

 

[BILL LUMBERG]

I'm glad your NO voted was an underwhelming minority position. The new contract has significantly better contract language protecting the interests of Delta pilots when Delta enters into JVs than the old contract.

Yeah......JV's are the new bogeyman for you Overwhelming Majority yes voters then? (Gotta give them up.....we must!)

Gotcha......Things like Calendar day, Crew Rest, SWA like wages and more LARGE RJ's never seemed to factor in huh?

Keep defending the status quo and trying to polish a turd like that POS contract we just RUSHED into.....

 

[Andy]

I hope this works out better for DAL than buying that refinery. The purchase of the refinery was a hedge on the crack spread. Since DAL bought the refinery, the crack spread has been declining. If the refinery couldn't make money at a higher crack spread, I seriously doubt that it's profitable today.

The question that I have about VA is why Singapore Airlines opted to sell their stake for a loss. The answer looks fairly clear - VA is losing money and has turned out to be a bad investment for Singapore Airlines. Singapore Airlines bought their stake in VA for $966 Million and have sold it for $360 Million.
This was not a fire sale for Singapore Airlines; they are profitable. As is Conoco Phillips who sold Delta the refinery.

Is there any breakout of how the refinery's been doing for DAL since they bought it? I'd be interested to see how they're spinning the numbers.

 

[Andy]

Yeah......JV's are the new bogeyman for you Overwhelming Majority yes voters then? (Gotta give them up.....we must!)

Gotcha......Things like Calendar day, Crew Rest, SWA like wages and more LARGE RJ's never seemed to factor in huh?

Keep defending the status quo and trying to polish a turd like that POS contract we just RUSHED into.....

If this helps, your contract isn't as much of a turd as the UAL/CAL TA (soon to be contract) that I'll have to live under.
I've got to get one of those bumper stickers I see on senior airline management's cars: 'Piyluts R Stoopid'

 

[General Lee]

I hope this works out better for DAL than buying that refinery. The purchase of the refinery was a hedge on the crack spread. Since DAL bought the refinery, the crack spread has been declining. If the refinery couldn't make money at a higher crack spread, I seriously doubt that it's profitable today.

The question that I have about VA is why Singapore Airlines opted to sell their stake for a loss. The answer looks fairly clear - VA is losing money and has turned out to be a bad investment for Singapore Airlines. Singapore Airlines bought their stake in VA for $966 Million and have sold it for $360 Million.
This was not a fire sale for Singapore Airlines; they are profitable. As is Conoco Phillips who sold Delta the refinery.

Is there any breakout of how the refinery's been doing for DAL since they bought it? I'd be interested to see how they're spinning the numbers.

Andy,

I disagree about the refinery. Most analysts now say DL may make twice what they originally thought in profits. As you know, oil will continue to rise and fall according to World events, and being able to shave off a few cents here and there per gallon may make a huge difference. Also, using WTI prices on ND crude compared to current Brent prices could also make a huge difference.

As far as Singapore selling their minority stake, I think it was a distance thing. Both DL and VA saw the looming AA/BA partnership as a wall that would be hard to overcome alone. Together, they have a better chance. Singapore was not interested in that route, and VA doesn't even go to Singapore. This JV will be good for both DL and VA, and bad for AA and BA. UAL also may lose out on some lucrative LHR to NYC traffic, although LHR to EWR is pretty much owned by you guys.


Bye Bye---General Lee