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Well-known member
- Joined
- Dec 21, 2001
- Posts
- 6,137
737Pylt:
Did not mean to imply it is the fault of labor. What I'm thinking is that there are going to be some who are negatively effected and Delta and ALPA would like to keep the news from them as long as possible. There is no strategic value in playing that hand early. Better to wait until it is a "done deal" and the Connection MEC's are left with the decision of approving super J4J under "brand scope" or having the airplanes diverted elsewhere. A fait accompli.
ATR - DRVR and Heavy Set:
The only loans available will be government sponsored. I suspect that even the more gullible private funds will have learned the $740,000,000.00 lesson taught to the State of Alabama's Retirement Fund.
This is one meaning of "self financing airplanes."
For Example:
Canada approves $250M loan to faltering Delta so it can buy 10 jets from Bombardier
Andrew McIntosh The National Post
Saturday, August 07, 2004
The Liberal government announced late yesterday it has approved a "loan of less than $250 million" to a Delta Air Lines subsidiary so it can buy 10 regional jets from transport company Bombardier Inc. of Montreal.
The deal, using tax money from the government-owned Export Development Corporation (EDC) and its loan fund known as "the Canada Account," was announced by International Trade Minister Jim Peterson.
News of the Canada Account loan deal emerged as Delta Air Lines' shares sank to their lowest level in 20 years on U.S. stock markets, after the airline was hit with another credit rating downgrade and fears that it is heading for bankruptcy.
The Canadian loan will help wholly-owned Delta subsidiary Comair, a regional airline, purchase 10 Bombardier CRJ regional jets for its existing fleet.
The loan repayment terms are secret, but Andre Lemay, a spokesman for the Foreign Affairs and International Trade department, said it is secured by the aircraft as collateral and does not breach world trade regulations on subsidies. If Delta or ComAir default, Bombardier will incur a significant loss, he said.
Mr. Peterson is on vacation and was unavailable to comment on the deal.
In a statement, Mr. Peterson was quoted as saying that the deal was "structured in accordance with commercial principles."
"Bombardier and the aerospace industry are important to our economy, our regions and our communities," Mr. Peterson's news release stated. "Canadians should be proud. Canada's aerospace industry is one of the largest in the world."
Mr. Peterson said the loan was the first transaction under a $1.2-billion Canada Account fund created in July 2003, to support regional jet sales.
The Canada Account loans to Comair were also approved by Finance Minister Ralph Goodale. EDC officials execute and administer such loans once approved.
Goldman Sachs investment analyst Glenn Engel said in a research note to clients, "the probability of a Delta bankruptcy is rising."
Buyers of Bombardier aircraft now owe the Canadian government more than $7 billion after getting EDC loans to buy planes.
</quote>
Did not mean to imply it is the fault of labor. What I'm thinking is that there are going to be some who are negatively effected and Delta and ALPA would like to keep the news from them as long as possible. There is no strategic value in playing that hand early. Better to wait until it is a "done deal" and the Connection MEC's are left with the decision of approving super J4J under "brand scope" or having the airplanes diverted elsewhere. A fait accompli.
ATR - DRVR and Heavy Set:
The only loans available will be government sponsored. I suspect that even the more gullible private funds will have learned the $740,000,000.00 lesson taught to the State of Alabama's Retirement Fund.
This is one meaning of "self financing airplanes."
For Example:
Canada approves $250M loan to faltering Delta so it can buy 10 jets from Bombardier
Andrew McIntosh The National Post
Saturday, August 07, 2004
The Liberal government announced late yesterday it has approved a "loan of less than $250 million" to a Delta Air Lines subsidiary so it can buy 10 regional jets from transport company Bombardier Inc. of Montreal.
The deal, using tax money from the government-owned Export Development Corporation (EDC) and its loan fund known as "the Canada Account," was announced by International Trade Minister Jim Peterson.
News of the Canada Account loan deal emerged as Delta Air Lines' shares sank to their lowest level in 20 years on U.S. stock markets, after the airline was hit with another credit rating downgrade and fears that it is heading for bankruptcy.
The Canadian loan will help wholly-owned Delta subsidiary Comair, a regional airline, purchase 10 Bombardier CRJ regional jets for its existing fleet.
The loan repayment terms are secret, but Andre Lemay, a spokesman for the Foreign Affairs and International Trade department, said it is secured by the aircraft as collateral and does not breach world trade regulations on subsidies. If Delta or ComAir default, Bombardier will incur a significant loss, he said.
Mr. Peterson is on vacation and was unavailable to comment on the deal.
In a statement, Mr. Peterson was quoted as saying that the deal was "structured in accordance with commercial principles."
"Bombardier and the aerospace industry are important to our economy, our regions and our communities," Mr. Peterson's news release stated. "Canadians should be proud. Canada's aerospace industry is one of the largest in the world."
Mr. Peterson said the loan was the first transaction under a $1.2-billion Canada Account fund created in July 2003, to support regional jet sales.
The Canada Account loans to Comair were also approved by Finance Minister Ralph Goodale. EDC officials execute and administer such loans once approved.
Goldman Sachs investment analyst Glenn Engel said in a research note to clients, "the probability of a Delta bankruptcy is rising."
Buyers of Bombardier aircraft now owe the Canadian government more than $7 billion after getting EDC loans to buy planes.
</quote>
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