Delta still looking at Jetblue?

[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

 

[BLUE BAYOU]

I remember when the General once said that "Song" was the best thing since sliced bread and that it would be the end of Jetblue. Well, Delta has gone through a Chapter 11 trying to kill us and we're still here. Song is all but forgotten except for the holdout of a couple well painted green and pink sperms (by the time Delta gets these repainted, they'll be on the next itteration paint scheme).

So, what makes one think the General gonna stop being the General. He's not going to; so you have to admire him for that.

As for the gates going into terminal 5 (TWA)-- they are worthless to Delta's International operation, all but 2 are for narrowbodies. Now, terminal 6 is another story, they are widebody gates; but from what I understand, JB will hold onto these and make them international gates (Carribean and maybe transatlantic announcement in October with A350s).

JB's master plan had called for 3 types of airplanes, small-medium-long haul. I'd say with our possible upcoming announcement (rumor has it that it will be a big one) things are looking brighter over here.

 

[Daedalus]

Oh great Bayou you just had to mention the 350 didn't you!

 

[IronCityBlue]

350, 351, whatever it takes!

 

[DIAMONDDD]

JB's master plan had called for 3 types of airplanes, small-medium-long haul. I'd say with our possible upcoming announcement (rumor has it that it will be a big one) things are looking brighter over here.

AHHHRRGGGG!!!!
Can....open.........worms everywhere!

 

[JetFumes]

Just what JB needs, going into more debt with a new airplane type on property.

 

[Headfake14]

...oh boy...now it's spilled onto FI. The fire is getting hot now...

Good, more to talk about on my next RIC shuttle flights.

 

[Headfake14]

the 330 is more realistic though...350 won't fly for a few years still.............IF we really wanna jump into the two isle talk

 

[BlueSurfer]

330s for now and then we'll trade em in for 350s when they've got the bugs worked out....

 

[Heavy Set]

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.

I think Delta uses Dish Network and some other company from Japan, Matsushista I think?

 

[PeanuckleCRJ]

Bayou is JB's equivalent of the General- just not quite as over the top. I guess every airline has to have one.

 

[elag777]

The 330's were supposed to be on the QT....!