Delta Exiting Bankruptcy, Faces Changes

[General Lee]

Wow more RJ's

http://www.marketwatch.com/News/Sto...4243-8E89-89538BE669F6}&siteid=yhoo&dist=yhoo

There is a finite amount of 76 seaters allowed per year, and per aircraft we at mainline fly. Their intention is to park more 50 seaters and add 76 seaters with first class in their place. This will place more pressure on the other DCI carriers as well, giving them less of a hold on our total feed.


Here is something from the latest conference call:


In yesterday's conference call with the finance houses, management pointed out that the RJ fleet will have zero hull growth through 2010, just exchanges from 40/50 seat to 70/76 seat. Mainline is currently scheduled to receive 15 737-700, 2 737-800, 13 757-200, and 5 777 over the next 3 years with no fleet attrition planned.


Bye Bye--General Lee

 

[BoilerUP]

RAH will be parking their 135s next year, but XJT will be flying 10 145s out of LAX and Mesa is adding 145s short term.

Looks like Comair and ASA are gonna get hosed pretty badly...

 

[Tomct]

RAH will be parking their 135s next year, but XJT will be flying 10 145s out of LAX and Mesa is adding 145s short term.

Looks like Comair and ASA are gonna get hosed pretty badly...

Yeah, the two that carried Delta through the tough times are getting screwed! That SUCKS!

 

[shroomwell]

I forgot, what is the status of DAL pilot's pension. Was it completely scrapped? What is the pension now, is it a glorified 401K?

 

[General Lee]

I forgot, what is the status of DAL pilot's pension. Was it completely scrapped? What is the pension now, is it a glorified 401K?

We are getting equity in the company later this week in the form of a check (most Captains will get a check for $120,000 plus two years (06 and 07) of their 401K filled to the max ($44,000 each year), and FOs will get around $80,000 in cash plus those two years of 401K fill ups ($88,000 total)), then we also get to carve up a $650 million note for the actual pension drop, which may fill up our 2008 401K requirement---which would be good so we could hide some money from the tax man, and the rest in cash again). Other than that, we have a 9% DC fund (9% of our monthly gross is matched by the company each month and put into this plan in our names) plus an additional 2% match on the 401K. United has a 16% contribution on their DC plan, so that is what we will be asking for next. That is all in our own names too.


Bye Bye--General Lee

 

[Lake Alice]

But, when other actual analysts are saying it and puting it in writing, then that could mean something.

Bye Bye--General Lee

And USAir was 2 weeks from liquidation, Delta a few months, etc, etc....

All the analysts know as much as anyone else which is very little. If one decides to lower a rating the others follow suit most likely becuase it is a safe bet. Other than that these "analysts" just guess.

 

[RedDogC130]

A captain from Delta (who was spoken to today in MCO) is spreading the rumor that they (Delta) is interested in putting in an offer for Jetblue. Stating that is cheaper to buy them for the gates at JFK and move the 320 in place of the MD-8 series and can all the people. I am not sure if this idea has been said here before but this guy sounded like he actually believed it. Any thoughts?

 

[atpcliff]

Hi!

There is a thread on the DAL-JetBlue buyout here on flightinfo.com

cliff
YIP

 

[Gunfighter]

Which legacy, in your opinion, has the greatest amount of real debt ("real" as in long-term debt compared to the overall size of the company?) I'm not sure what metric MBA's use to measure long-term debt. Bigger debt might be okay for an airline the size of CAL vs an airline the size of Midwest.

I didn't stay at a Holiday Inn Express last night, but I do have an MBA, so I'll throw in my .02. Debt to Equity (D/E) is the ratio used to measure long term debt. When put into ratio form it allows for a common sized comparison of debt across differen sized companies.

A couple other handy ratios are:
Current Ratio = Current Assets / Current Liabilities
Quick Ratio = Quick Assets / Current Liabilities

The current ratio is a measure of a company's ability to meet short term (12 mos.) expenses. The Quick Ratio is a acid test version that doesn't include inventory in the Current Assets calculation. Generally a 2:1 current ratio and a 1:1 quick ratio are reaonable. I'm not sure about airline industry specifics.

When looking at the Debt to Equity (D/E) ratios a bigger factor is the trend in the ratio over time vs. a balance sheet snapshot. If a company can reduce the long term D/E ratio while maintaining cash the balance sheet is improving.

These links will give you a snapshot of company financials

UAUA http://finance.yahoo.com/q/bs?s=UAUA&annual
CAL http://finance.yahoo.com/q/bs?s=cal
NWA http://finance.yahoo.com/q/bs?s=NWACQ.PK&annual
SWA http://finance.yahoo.com/q/bs?s=luv
DAL - Not available, but should be once they start trading again.

 

[FlyBoeingJets]

Wow, another anal-cyst. It's great you can back up your opinions with "I may be way off base."

Bye Bye--General Lee

O.K. General. Here are some of the latest facts on NWA. It was a good quarter. Analyst approval or not, they are doing well.

Like many, I trust the analysts to read and report on the same facts from an earnings report I can read. But I don't trust their guesses at where the industry or individual companies are going. They are often not looking ahead far enough or are just trying to drum up business from the company they are looking at.

I was talking about how much the market will value these companies (stocks). Often stocks go way above or below the value of the enterprise. A guess at the success of the company may have correlation to the stock price, but not necessarily so.


http://biz.yahoo.com/bw/070430/20070430006162.html?.v=1

Northwest Airlines Reports First Quarter 2007 Results

Monday April 30, 2:26 pm ET


EAGAN, Minn.--(BUSINESS WIRE)--Northwest Airlines Corporation (Pink Sheets:NWACQ - News) today reported a first quarter 2007 pre-tax profit of $100 million before reorganization items which compares to a first quarter 2006 pre-tax loss of $129 million before reorganization items. Including reorganization items, Northwest reported a first quarter 2007 net loss of $292 million versus a $1.1 billion net loss for the first quarter of 2006.


Commenting on the airline's employee gainsharing programs, Steenland added, "A key element of our business plan is the various programs we have instituted to allow employees to share in the success of a profitable Northwest. So far in 2007, the airline distributed to its employees approximately $395 million in profit sharing, performance incentive payments and proceeds from unsecured claims sales that were part of the collective bargaining agreements. Through 2010, we forecast that Northwest employees will receive approximately $1.6 billion in distributions through these programs and claims."

He continued, "We expect to complete our restructuring process in June and emerge as a stronger and profitable company with the highest valuation in the company's history."

First quarter financial overview

Operating revenues in the first quarter decreased by 0.6 percent versus the first quarter of 2006 to $2.87 billion. System passenger revenue increased 7.5 percent to $2.2 billion on 4.7 percent more mainline available seat miles (ASMs), resulting in a 2.7 percent improvement in unit revenue. Including regional carrier revenues, Northwest's consolidated unit revenue improved 1.3 percent on 3.1 percent more ASMs. Operating expenses in the quarter decreased 8.0 percent year-over-year to $2.67 billion. Mainline unit costs, excluding fuel, decreased by 7.5 percent on 4.6 percent more ASMs. See accompanying consolidated notes to the financial statements for additional information regarding year-over-year comparisons.

 

[igneousy2]

When looking at ratios, the actual numbers are less important than how the numbers compare to the numbers of other similar companies and how the numbers are changing on a period over period basis.

When looking at financial statements, in my opinion, the quickest way to determine the health of a company is to go to the Statement of Cash Flows and look at the "cash from operations" number...NOT the total change in cash at the bottom. From an accounting stand point, this is one of the more difficult numbers to skew and to me is where the rubber meets the road. Most importantly, make sure this number is positive and preferably on an increasing trend. If this number is decreasing or already negative things are not well at your company.

Later

 

[Schiphol]

When looking at ratios, the actual numbers are less important than how the numbers compare to the numbers of other similar companies and how the numbers are changing on a period over period basis.

When looking at financial statements, in my opinion, the quickest way to determine the health of a company is to go to the Statement of Cash Flows and look at the "cash from operations" number...NOT the total change in cash at the bottom. From an accounting stand point, this is one of the more difficult numbers to skew and to me is where the rubber meets the road. Most importantly, make sure this number is positive and preferably on an increasing trend. If this number is decreasing or already negative things are not well at your company.

Later

Concur, 100%. However, cash from operations are only really good if they are sustainable, see little long term competition (in this market) and aren't in the face of some heinous long term leveraged position at untenable rates.

 

[Schiphol]

I didn't stay at a Holiday Inn Express last night, but I do have an MBA, so I'll throw in my .02. Debt to Equity (D/E) is the ratio used to measure long term debt. When put into ratio form it allows for a common sized comparison of debt across differen sized companies.

A couple other handy ratios are:
Current Ratio = Current Assets / Current Liabilities
Quick Ratio = Quick Assets / Current Liabilities

The current ratio is a measure of a company's ability to meet short term (12 mos.) expenses. The Quick Ratio is a acid test version that doesn't include inventory in the Current Assets calculation. Generally a 2:1 current ratio and a 1:1 quick ratio are reaonable. I'm not sure about airline industry specifics.

When looking at the Debt to Equity (D/E) ratios a bigger factor is the trend in the ratio over time vs. a balance sheet snapshot. If a company can reduce the long term D/E ratio while maintaining cash the balance sheet is improving.

These links will give you a snapshot of company financials

UAUA http://finance.yahoo.com/q/bs?s=UAUA&annual
CAL http://finance.yahoo.com/q/bs?s=cal
NWA http://finance.yahoo.com/q/bs?s=NWACQ.PK&annual
SWA http://finance.yahoo.com/q/bs?s=luv
DAL - Not available, but should be once they start trading again.

What he said. I'm just a marketing/strategy dude...and like I said, I sucked at FinAcct.

Thanks for the clarification Gunfighter....and thanks for bringing up the bad memories.

Thats why I ditched the business world and am banging on doors hoping someone lets me fly their big airplanes.

 

[GCAP]

We are getting equity in the company later this week in the form of a check (most Captains will get a check for $120,000 plus two years (06 and 07) of their 401K filled to the max ($44,000 each year), and FOs will get around $80,000 in cash plus those two years of 401K fill ups ($88,000 total)), then we also get to carve up a $650 million note for the actual pension drop, which may fill up our 2008 401K requirement---which would be good so we could hide some money from the tax man, and the rest in cash again). Other than that, we have a 9% DC fund (9% of our monthly gross is matched by the company each month and put into this plan in our names) plus an additional 2% match on the 401K. United has a 16% contribution on their DC plan, so that is what we will be asking for next. That is all in our own names too.


Bye Bye--General Lee

It is whores like you that can't wiat to carve up what was to be the pension of many hard working Delts pilots of the past. " I'll get " blank blank " from the note and "blank blank" from the claim. You and all like you are what is wrong with aviation. WHORES!!!!!

 

[General Lee]

It is whores like you that can't wiat to carve up what was to be the pension of many hard working Delts pilots of the past. " I'll get " blank blank " from the note and "blank blank" from the claim. You and all like you are what is wrong with aviation. WHORES!!!!!

Say what? They are the guys that couldn't care less about 100s of furloughs, as long as they got theirs. (let me guess, your dad was a DL pilot?? Right?--I hope he invested well) A pension has always been a promise, and if they stayed with their original wife and didn't buy a large boat, they should be doing fine now on the golf course.

And, ALPA is the one determining the distribution of the claim, not the average line pilot. It is done with many equations that would be too hard to describe to you right now. Fair is fair! Bye now.


Bye Bye--General Lee

 

[AA717driver]

It is whores like you that can't wiat to carve up what was to be the pension of many hard working Delts pilots of the past. " I'll get " blank blank " from the note and "blank blank" from the claim. You and all like you are what is wrong with aviation. WHORES!!!!!

Shhhh! None of the "heroes" at Delta want to acknowlege what they did to the PAA pilots and what they would be willing to do to the JB people.

They make APA look downright magnanimous... TC

P.S.--Those who lost their pensions in the "glorious" Ch. 11 should have forseeen what was coming 20 years down the road and prepared for it.

 

[General Lee]

First of all, the retired pilots got an $880 million claim in BK, which will be given shortly to them. Second, ever hear of the dirty 30 at Pan Am? The guys that bid down to 727 Captain from 747 Captain to bump out other guys who would have gone to Delta? Sounds like they all were sooooo ethical.... And as far as what COULD happen with the JB guys if we EVER did aquire them? I don't know, what is in their contract?


Bye Bye--General Lee

 

[motch]

maybe off topic... but,

Congrats DAL on exiting BK. All The Best!

Always
Motch

 

[dtfl]

It is whores like you that can't wiat to carve up what was to be the pension of many hard working Delts pilots of the past. " I'll get " blank blank " from the note and "blank blank" from the claim. You and all like you are what is wrong with aviation. WHORES!!!!!

If this isn't just flame...then let me respond...

As a guy whom was furloughed for 5+ years....you can k&ss my ass.
GREENSLIPPER!

 

[acarpe3448]

It is whores like you that can't wiat to carve up what was to be the pension of many hard working Delts pilots of the past. " I'll get " blank blank " from the note and "blank blank" from the claim. You and all like you are what is wrong with aviation. WHORES!!!!!

F### YOU looser!