Delta Pres/CFO says Delta strong enough to go it alone--AJC article

[Deadalus]

Actually our current value is closer to $7 billion, only $1 billion less than Southwest is worth. (market cap) The creditors were told we would be worth $12 billion, but high oil has erased a lot of market cap for almost every airline. The creditors did select Anderson, but even he can't make sure a merger will go through unless it appeases everyone, including every local politician. The hedge funds and Wall St wanted the USAir and Delta combo, to no avail. One thing is pretty certain though, Anderson has a better driving record than Parker.

Bye Bye--General Lee

The last time I looked Delta's value was $5 billion, Southwest $10 billion, and US Airways $3 billion.
At $3 billion the only thing that is probably keeping us from being bought is our poison pill(labor). With $3.5 billion in the bank and our delivery dates for all the buses we may be bought in the future.
I agree Anderson has a better record . Oh, and quite calling us US Air, it's US Scareways.

 

[Noserider76]

Latest lounge brief in ATL said merger talks fueled by hedge funds that want to cash out (big surprise), stand alone is the prefered option (wish that was the case). I think Congress ought to investigate the fact that a group of "get me rich quick then cut and run investors" affect the destiny of long established hubs, facilities, and countless jobs. These guys aren't even secured creditors. F' em.

Big bid to come out early Feb.

Lots of new international destinations to come. (no not NWA's)

It would be great to see this thing fall by the wayside and watch the train wrecks from the sidelines.

 

[BILL LUMBERG]

People.....

Let's read between the lines on this one.......Ed "pilots are overpaid Fatcats" Bastian might be planting the seed to pump up a perceived value of Delta Air Lines to the interested players......

Like a used car, he's SELLING our strengths....."Look at that Corinthian Leather......."

Value in something is getting someone to believe its worth it to buy......

 

[BILL LUMBERG]

No doubt there was quick $$ to be made, but lets look at LCC as well. Your stock was trading in the neighborhood of $60 when the hostile takeover was announced. Today your stock is worth $15 and change.

737

Quite true 737.....but all airline stocks are down due to high oil and a demand crunch from the looming recession....not really a fair characterization.....but I do agree about Doogie Parker talking a lot of smack about how his "Synergies" we're best for the stock prices.

 

[michael707767]

coming from the expert in airlines......an Air Force loser LtCol with only 2000 hours. Go out and fly.

 

[brainhurts]

And when you have some LCC competition, instead of beating them, you buy them. That won't last forever, and your RASM/CASM etc will go down. Your fortress hubs up there in the dark, cold North will eventually be invaded, and you will know what it is like to actually compete. (if you still have enough DC9s to compete with their new mainline planes) It will hit you eventually.

And Delta has a lousy balance sheet? Really? Lousy? Thanks Dr. Phil. How's Britney doing?


Bye Bye--General Lee

You sound like a mad little girl.

 

[Occam's Razor]

And Delta has a lousy balance sheet? Really? Lousy? Thanks Dr. Phil. How's Britney doing?

Britney's fine. We hope to have her meds stabilized before she gets to over 10,000 posts. Pray for her!

Yes, DAL has a lousy balance sheet. Not just my opinion. They had difficulty convincing some creditors to take the medicine during the re-org. The presence of the PBGC on the list of major creditors (now "shareholders") is a buzzkill when you're seeking long-term shareholders whose last names aren't "Boeing", "GE", or "Bank".

DAL didn't shed the debt it needed to during the re-org. The court allowed some large creditors to encumber assets and set up a payment schedule (spelled "D-E-B-T") instead of making them eat stock.

UAL did much of the same. NWA and AAA (Pt 2), threw stock at the creditors. It made NWA a bit more vulnerable to a proxy fight, but it reduced debt servicing requirements.

Debt service isn't a big deal, as long as your other expenses don't go up faster than your revenue.

 

[lowecur]

Lots of posturing on all sides at this point. Everyone wants to be the straw that stirs the drink and not eat humble pie.

This thing needs a conclusion in the next 60 days to get done by the end of this administration's term. Bookings seem to be strong through the spring, and with those numbers you aren't going to get two parties to the alter.

I think Bethune was probably right in saying that a UAL/DL is the path of least resistance, but that deal would require alot of trimming to make it work + I don't think DL likes UAL's balance sheet. NWA is the partner both DL and CAL would want to dance with, but she is playing hard to get.....and rightfully so.

Personally I'm beginning to believe that DL should just try and do the deal with UAL. It would give them a great headstart as I have my doubts NWA could ever agree to do a deal with anyone including CAL, until both companies were headed for the trash heap.

imp:​

 

[Diesel-9]

Delta has a good balance sheet???? Just about died reading that. I'll take the fortress hubs up north any day and the fortress in Narita vs. bragging about ATL and the RJ factory there. NWA's 757 flying alone out of NRT is bigger than DAL's Asia presence. DAL does feed NWA's Pacific routes very nicely with the code share. NWA has competed well against LCC's in the past(Frontier, Reno etc..) They basically gave Midwest their old MKE mini-hub flying years ago with certain agreements and now see it prudent to acquire them for many reasons. Maybe the General wears a star at DAL but I see a rank of 2LT as more appropriate when glancing over his P.R. releases.

 

[AA717driver]

NOBODY HAS A GOOD BALANCE SHEET!!! That's why these stupid threads exist.

Which weak carrier is going to be forced by Wall St. to merge with which slightly weaker carrier so the morons who weakened the airline can escape with their tens of millions and go on to wreck another company.

Quoting johnsonrod: "Meanwhile, AA is saddled with too much debt to do anything." That's the best news I've heard all month. Thanks! TC

 

[Tanker Clown]

I'll add to that.....In 12 months, tanker/jerk406/jmoney, will still be dressing in womens' clothing, will still have the same trailer, but will have moved to a different trailer park, and still have less than 2000 flight hours.
He also may get promoted to barrack cleaner from pencil sharpener! You little E1 dork!

737

Another one for the archives. You, sir, are a credit to FI and the internet as a whole.

 

[Diesel-9]

Hopefully things will settle down and no mergers will happen and we can all put the nukes back in storage. (But think big money is out to get us all)

 

[BILL LUMBERG]

Another one for the archives. You, sir, are a credit to FI and the internet as a whole.

C'mon Tanker....

You get on here and start the monkey poo fight and then take the higher ground??

You do a good job of riling up the usual suspects, but a lot of people have you on ignore....Me? I like the entertainment!! It's like "What's the Desk-flyer going to say next??"

 

[BILL LUMBERG]

Hopefully things will settle down and no mergers will happen and we can all put the nukes back in storage. (But think big money is out to get us all)

Amen.....

Actually being in an election year may help us all out by pointing out the job losses and other items on the list that happen in a merger.....both parties want to listen until November......

 

[Tanker Clown]

C'mon Tanker....

You get on here and start the monkey poo fight and then take the higher ground??

You do a good job of riling up the usual suspects, but a lot of people have you on ignore....Me? I like the entertainment!! It's like "What's the Desk-flyer going to say next??"

Thanks Lumburgh. I was going to shut down my FI account, but your words of encouragement have made it possible to continue.

I'm not really sure why people put me on the ignore list. I speak the truth...although some folks don't like to hear it.

 

[NuGuy]

Not to be nasty, or arrogant, but why should Delta buy what it can take? The 777 LR's and 787's overfly NorthWest's 5th freedom rights easily. Customers would prefer to have one connection, than two.

Um, not the customers in NRT and the rest of Asia that see NWA as a domestic or local carrier that is their choice to get to other Asian destinations.

Bypassing those customers is bypassing a TON (a majority, in fact) of revenue. The key to Asia is NOT to be US centric.

But that's OK. I hope your management contines to think like that, and 10 years from now ATL-NRT will STILL be all you have.

DAL NEEDS NWA, not the other way around. In fact, given NWAs rather vindictive, off the wall behavior after failed aquistions, they'll probably go out and buy AirTran just to piss DAL off.

Nu

 

[Zipperhead]

General Lee's got it all figured out. You can post facts about Delta's crappy balance sheet and he'll put his usual spin on it and make them look like the best airline in history. He's just praying he doesn't get stapled, would seriously bruise his ego.....

Keep up the good work general, only a few hundred posts to go to hit 11,000!! Only a few more lonely layovers should do it.....

 

[Diesel-9]

Actually, he (The General Lee) may have a defense/alibi in the courtroom. Under the influence, ( .125%) from the "Monroe Mixture" DAL Kool-Aide (DKA 151 Proof). Give him a break with no jail time and a Field Demotion to 2LT.

 

[General Lee]

Um, not the customers in NRT and the rest of Asia that see NWA as a domestic or local carrier that is their choice to get to other Asian destinations.

Bypassing those customers is bypassing a TON (a majority, in fact) of revenue. The key to Asia is NOT to be US centric.

But that's OK. I hope your management contines to think like that, and 10 years from now ATL-NRT will STILL be all you have.

DAL NEEDS NWA, not the other way around. In fact, given NWAs rather vindictive, off the wall behavior after failed aquistions, they'll probably go out and buy AirTran just to piss DAL off.

Nu

This might be the funniest post I have read in awhile. Northwest is thought of as a "local or domestic" carrier in Japan or Asia? In reality, you guys are thought of as Woody Harrelson in "White men can't jump." Give me a break. Would an Asian or Japanese person pick you over Cathay, Singapore, JAL, ANA, or Korean? No. You benefit from lots of slots and gates over there, but you have many connections from the US--which fills your flights. Let me guess, those people just can't get enough of your two ton 40 year plus stews, right? They are soooo much better than Singapore girls, right? Hillarious. And let me guess Nu, you are an expert at chopsticks too, right? Hahahahahah. Go ahead and eat your corn cobbs and ice cubes and stay in MSP....


Bye Bye--General Lee

 

[General Lee]

General Lee's got it all figured out. You can post facts about Delta's crappy balance sheet and he'll put his usual spin on it and make them look like the best airline in history. He's just praying he doesn't get stapled, would seriously bruise his ego.....

Keep up the good work general, only a few hundred posts to go to hit 11,000!! Only a few more lonely layovers should do it.....

You are on a roll too. You now have hit 159 consecutive posts that add nothing of value to this board. There really is nothing going on in your head, so you TRY to slam. Again, it doesn't work, and still makes you look bad.


Bye Bye--General Lee