Delta Replaces Its CFO, Makes Other Exec Changes As It Prepares to Record Hefty Loss

[capt. megadeth]

I wonder how much this severance package will cost?

Ha ha....that was the first thing that popped into my mind when I read the title.

 

[Reebo]

not to pure salt in the wounds, but i think the career expectations of a Delta pilot just got flushed down the toliet. this is not good news for anyone. when will the downward spiral end?

 

[LearLove]

nothing

 

[LearLove]

more of nothing

 

[AA717driver]

Man, I thought Palumbo was a trooper. He stayed with TWA for the long haul.

Next opportunity for him is making one of those Corona commercials...TC

 

[~~~^~~~]

Actually, the loss was narrower than I expected. Delta is in narrow financial straights, but this indicates that mainline is making a decent operational profit. Now if we could keep operations from sqandering money on indecent gay rights campaigns, perhaps the airline could see a slight profit.

The rub is that Delta needs some profits in order to obtain competitive aircraft. The 787's need to replace 767-200 flying and 737-800 & 900's would make excellent MD80 replacements. Unfortunately these airplanes require cash. Getting more RJ's on "zero money down" deals is not an answer.

 

[michael707767]

Actually, the loss was narrower than I expected. Delta is in narrow financial straights, but this indicates that mainline is making a decent operational profit. Now if we could keep operations from sqandering money on indecent gay rights campaigns, perhaps the airline could see a slight profit.

I agree with you. Things are not great but they are coming around. Keep in mind, we are about a year or two behind AA in our efforts to restructure and lower costs. I think a lot will hinge on pension reform going forward. If we get it, a fair chance of avoiding BK, if not BK is a certainty.

I also think the answer in the future is to stop moving passengers in small jets, but to start increasing gauge.

 

[~~~^~~~]

I also think the answer in the future is to stop moving passengers in small jets, but to start increasing gauge.

Delta needs to use the airplanes appropriate for the route, traffic and time. Most of the 40 seat RJ's go to markets where the local government is paying fees, sometimes in the millions, to secure service to a major hub. (BPT and ISO were examples at one time) If it makes you feel better, you can consider these scheduled charter flights. You should also like the idea that they bring the revenue to your 757 that makes up a high percentage of its marginal profit.

Delta will have to go up in gauge and the CRJ200's have many less markets they can serve profitably at current fuel prices. But they tend to generate higher revenues to offset their cost, when they are used correctly.

~~~^~~~

 

[spanky2]

At June 30, 2005, Delta had $2.0 billion in cash and cash equivalents and short-term investments, of which $1.7 billion was unrestricted. Cash flows used in operations were $122 million in the June 2005 quarter. Capital expenditures for the quarter were approximately $240 million, including approximately $150 million for regional jet aircraft delivered under seller financing. During the quarter, Delta also completed the sale of one MD-11 aircraft, resulting in proceeds of $26 million. In addition, Delta deferred delivery of eight Boeing 737-800 aircraft from 2006 to 2008. As a result of these deferrals, Delta has no mainline aircraft deliveries scheduled in 2006.

Parking jets, selling jets, deferring jets ... and buying more RJ's. Watch for BIG retirements in Aug & Sep ...

 

[Rick James]

Delta needs to use the airplanes appropriate for the route, traffic and time. Most of the 40 seat RJ's go to markets where the local government is paying fees, sometimes in the millions, to secure service to a major hub. (BPT and ISO were examples at one time) If it makes you feel better, you can consider these scheduled charter flights. You should also like the idea that they bring the revenue to your 757 that makes up a high percentage of its marginal profit.

Delta will have to go up in gauge and the CRJ200's have many less markets they can serve profitably at current fuel prices. But they tend to generate higher revenues to offset their cost, when they are used correctly.

I agreee 100%, operating 50 or 70 seat a/c on routes that could have filled an MD90 doesn't jive. Delta along with UA need to figure this out, otherwise these RJ's will cause more problems than they solve.