Delta still looking at Jetblue?

[IronCityBlue]

Wednesday SWA is announcing thier entrance into ATL and the New York market. Apparently getting gates at both places from Delta. They are also expected to announce a new international codeshare agreement with Delta which they claim is the catalyst for the new markets.

Maybe Delta is going to give SWA some gates in New York because they know they are getting a new terminal when they buy JB.

:laugh:

And the random post of the day with no chance of ever happening award goes to....

:laugh:

OMG I can't believe I was the first to call BS on a post. Someone else always beats me to it. :beer:

 

[A350]

Another respectful, articulate post by the General....

It sure is funny how bankruptcy and the rest of DAL's past few years took the swagger out of your step, but throw in a profitable quarter and you are right back at the top of the pile?

Only DAL would spend $ 4B on a company for an
$ 800M terminal and some E190's. Good luck with that.

BTW, I thought the USAirways merger was going to pay your creditors $ 10B, and your worth what right now? $ 4B and change?

A350

 

[curtaindriver]

But we have enough to buy you and grab the terminal and the E190s, and then staple 500 of you to our list. But, it won't happen, right?

Bye Bye--General Lee

And the other 1400 of us go on top of the merged list? Awesome, bring the noise.


And why in the world would you guys want 190's when you can have every regional out there fly 90 seaters? Nice scope, dude.

CD

 

[DIAMONDDD]

Orberscure!!!



Wait!!! INSECURE!!!! Thats what it was, I think.

 

[General Lee]

Another respectful, articulate post by the General....

It sure is funny how bankruptcy and the rest of DAL's past few years took the swagger out of your step, but throw in a profitable quarter and you are right back at the top of the pile?

Only DAL would spend $ 4B on a company for an
$ 800M terminal and some E190's. Good luck with that.

BTW, I thought the USAirways merger was going to pay your creditors $ 10B, and your worth what right now? $ 4B and change?

A350

Our stock may be worth that, but we have $5 billion in cash and we obviously have some assets (like me). That would make us worth $20 billion. How do you account for the cash on hand and the terminals, planes, etc?

Bye Bye--General Lee

 

[General Lee]

And the other 1400 of us go on top of the merged list? Awesome, bring the noise.


And why in the world would you guys want 190's when you can have every regional out there fly 90 seaters? Nice scope, dude.

CD

We never said we would want the A320s. And, believe it or not we still have a limit on seats for the regionals, at 76 seats. You can ponder all you want if we would ever let that get up to 100 seats, or even 90. In BK, under the threat of liquidation with an judge that would not favor us, we gave up 6 more seats. It would have to be an event like that again or Mars attacking to give them 90 seats. Could it happen? I guess. Will it? Highly doubtful.

Bye Bye--General Lee

 

[zkmayo]

But we have enough to buy you and grab the terminal and the E190s, and then staple 500 of you to our list. But, it won't happen, right?

Bye Bye--General Lee

I just do not understand your arrogance and insensitivity. This coming from someone who's company(DAL) was almost taken over by another(US). Did you not learn anything from that experience? Like humility from how close you yourself came to being merged or stapled onto another list? It seems you didnt from the inflammatory remarks you regularly make regarding a jb/dal buyout. I had it almost happen to me at another carrier and trust me, I wouldnt wish a merger or buyout on anyone and I certainly wouldnt turn around and brag on this board about buying out others after just having gone through it myself.

 

[curtaindriver]

We never said we would want the A320s. And, believe it or not we still have a limit on seats for the regionals, at 76 seats. You can ponder all you want if we would ever let that get up to 100 seats, or even 90. In BK, under the threat of liquidation with an judge that would not favor us, we gave up 6 more seats. It would have to be an event like that again or Mars attacking to give them 90 seats. Could it happen? I guess. Will it? Highly doubtful.

Bye Bye--General Lee

Yeah, but 76 multiplied by infinity is a lot of regional jets...... You know I'm just jabbing at you, and I sincerely hope that you guys never allow anything bigger. Your scope is way too loose, but I realize I'm preaching to the choir.
Oh, and if Delta bought JetBlue and didn't want over 100 airplanes, just to get 30.....they would be the dumbest airline management in the world. Of course, you guys did just lose your CFO who is pretty intelligent.

CD

 

[A350]

General:

While I don't claim an accounting degree....when Microsoft paid that large dividend from cash, the stock price went down the same amount.....

In other words, the $5 B you have in cash, minus your liabilities, plus what you have in other assets, according to Wall Street equal $4.1B.

Not the rosy picture you paint.

A350

 

[brainhurts]

But we have enough to buy you and grab the terminal and the E190s, and then staple 500 of you to our list. But, it won't happen, right?

Bye Bye--General Lee

Dude,
You are a fucl<ing dou$he bag. I am sure you have zits and Star Wars stuff up on your shelf.

 

[ATR-DRIVR]

We never said we would want the A320s.
Bye Bye--General Lee

So you would rather have the MD-80/88's which are begging to be taken to the desert and die, or pretty much brand new 320's? If I was a stockholder and that was the outcome, I'd be asking Tricky Dick what the hell was he thinking.....

 

[Skank]

But we have enough to buy you and grab the terminal and the E190s, and then staple 500 of you to our list. But, it won't happen, right?

Bye Bye--General Lee

My, my, some things never change. Still have no life?

 

[General Lee]

So you would rather have the MD-80/88's which are begging to be taken to the desert and die, or pretty much brand new 320's? If I was a stockholder and that was the outcome, I'd be asking Tricky Dick what the hell was he thinking.....

First of all, I think this is an old story, and probably won't happen. As far as the A320s, no, I don't think we would go for them. I think we would stick with Boeing or get some of those used MD90 aircraft rumored to be out there in China. (real cheap, like $8 million per plane, still fairly new) I don't know if Anderson is looking at JB or anyone else. Everyone likes to speculate, but I think he is trying to absorb the "Delta culture" right now, and that is his first priority.

Bye Bye--General Lee

 

[slaquer5]

everyone likes to speculate, but I think he is trying to absorb the "Delta culture" right now, and that is his first priority.

Bye Bye--General Lee

That is easy to figure out. (I, I, I, I and me,me,me,me...

 

[PCL_128]

Only DAL would spend $ 4B on a company for an
$ 800M terminal and some E190's. Good luck with that.

Where do you get $4 billion from? Jet Blue's market cap is at $1.7 billion right now. You think you guys can get a 230% premium on your stock?

 

[clickclickboom]

Buyouts or takeovers usually require a purchase of the assets AND debt..

 

[PCL_128]

Buyouts or takeovers usually require a purchase of the assets AND debt..

Not in mergers of such large companies with such high debt loads. The likely outcome would be a purchase of the company at a slight premium to the market cap, with the help of several banks to refinance the existing JBLU debt. Actually purchasing the debt would be unlikely. I would imagine that Boeing, AMEX, or some other friend of DAL would be more than happy to assist in financing the JBLU debt if this deal were to go through.

 

[A350]

The General thinks DAL is worth 5 times the market cap....

Anyone who knows what an airline is worth?

BTW, the General and company won't get my stock for under $30/share.

A350

 

[~~~^~~~]

Why would Delta buy Jet Blue?

Does Jet Blue's terminal work for Delta's international travel requirements? As far as an incompatible fleet of oddball aircraft, I don't see how a lease on a $50,000,000 jet beats an equally efficient $8,000,000 (according to General, I think they are more expensive) MD90. Don't they even use the same V2500 engines? And, to get the MD90's compatible they will surely get new interiors with all the neat features.

What everyone might be overlooking is that the MD90's would free up more 737's to do longer ranged flying. The 737-800 (and some MD90's) could do everything the a'bus could do. Plus Delta would benefit by having the World's largest fleet of the MD90's, which are themselves a little bit of an oddball aircraft.

Parts of Jet Blue might be useful to Delta. Anyone know if the "Live TV" system is the same Delta uses? I thought Delta was Panasonic X's, but I know nothing about that stuff. My crystal ball has Delta shopping at the JetBlue yard sale, if JetBlue is ever forced to sell.

If I was Delta, I would wait and see what happens while doing everything possible to offer a better product out of New York. Competition with Jet Blue is forcing every airline in that market to improve. But as Delta improves, the inevitable result is that they will begin taking a bite out of AirTran also - which Delta has to move forward on with something other than RJ's.

These merger manic analysts just like seeing their name on the internet. The more they get seen, the better name recognition they have and the better business is for their little three person offices.

 

[PlaneDrvr]

Not in mergers of such large companies with such high debt loads. The likely outcome would be a purchase of the company at a slight premium to the market cap, with the help of several banks to refinance the existing JBLU debt. Actually purchasing the debt would be unlikely. I would imagine that Boeing, AMEX, or some other friend of DAL would be more than happy to assist in financing the JBLU debt if this deal were to go through.

When you buy a company you don't 'buy' the debt, but buying the stock, outright (with a premium); you 'assume' the existing debt of the company. And, currently JB has about $3+billion in longterm debt; so 're-financing' it or not (which would merely lower the 'rate' or cost of financing), a company would be 'assuming' over $3 billion is additional longterm debt, which is considered part of the 'cost' of buying a company. Seems about right from 'business 101'

As a side note, that is the problem for JB in any 'merger/buyout' and also going forward alone, is that they have 'A Lot' of debt for the size (revenue wise) of the company. Just a by-product of 'rapid growth' as they probably should have 'slowed' the growth plans about 2-3 yrs ago, instead of 6mths ago.

My $0.02, for what's it worth. Now continue with your normally scheduled JB/DL 'rant.'

DA