Delta to sell??

[av8tor4239]

I don't see why this is surprising. DL is getting desperate for cash. They are burning through cash far faster than management had expected. Loss projections for 2005 are being increased and the hope of profits in 2006 are fading fast.

What the He!! do you expect when a company is run by a bunch of greedy APES, is still paying OLE LEO MULLINS Millions of dollars annually in severance and golden parachute money... and you sell Tickets from west coast to the east coast for less than Greyhound (i am not kidding www.greyhound.com ) ($174 RT from LAX to Norfolk VA on Delta, 178 RT with a 2 day ride on Grayhound)...

At what point to the employees stop giving? There was an article in the AJC Saturday about the Delta Execs getting their bonuses back and getting extra bonuses for ontime performance... What incentive do you (labor) have to be ontime?

If ASA gets sucked into a NON UNION skywest situation I might have to leave aviation... If you don't vote to be a whore (comair) they will sell you into Whorism...

 

[FDJ2]

Even when listening to the same recording we all hear different things!!!!!!!!!!!!!

Uba757

So true.

 

[Hobiehawker]

This whole issue is about "buying" not "merging".

I would suppose whatever ALPA clauses there are about mergers wouldn't apply here.

 

[surplus1]

Whether they merge or simply buy and operate, whether it's one or both, SkyWest management will be taking on a lot more than the chorus of the tabernacle choir that they're accustomed to dealing with.

Delta back in early 2001 had the money and the power to take a 600 million dollar strike. Anything close would bury SkyWest at the bottom of the great salt lake. Their attempts to mormonize either ASA or CMR, let alone both, would likey lead to the lot of them becoming catholics. SLC ain't ATL and it sure isn't CVG.

It may be a good idea for Delta to sell, but it may be a far better idea for SkyWest to find another way to grow. They could pick up the assets of AWAC for a lot less thus firming up their marriage to UAL, than a shotgun wedding with the subsidiaries of Delta. Of course it wouldn't be the frst time that management egos have resulted in their demise.

On the other hand it would be interesting to watch DAL deal with putting nearly all of its food into the hands of a 5500 pilot airline dominated by its rejected lovers.

XJT is more likely to be the only regional in the game that could swing something like this without risking its own apple cart. Then DAL & CAL both would have their feed in one place. Whoopie!

 

[lowecur]

There is another option for DL, and it's called 11. One way to quickly jettison yourself of unwanted baggage is BK. I wonder if the employees of DCI knew if their choice was SKYW or no job, which would they choose? I think mgt for DL would like nothing better than to flush wholly owned DCI and deal with contract carriers. With oil prices continuing to skyrocket, can 11 be too far off?

 

[FL000]

This whole issue is about "buying" not "merging".

I would suppose whatever ALPA clauses there are about mergers wouldn't apply here.

The clause at ASA refers to purchases, mergers and all other "transactions."

 

[surplus1]

There is another option for DL, and it's called 11. One way to quickly jettison yourself of unwanted baggage is BK. I wonder if the employees of DCI knew if their choice was SKYW or no job, which would they choose? I think mgt for DL would like nothing better than to flush wholly owned DCI and deal with contract carriers. With oil prices continuing to skyrocket, can 11 be too far off?

I think maybe you misunderstood what I was trying to say. Management is obviously free to exercise whichever of its "options" it may deem appropriate. Employees can't stop a sale and they can't stop a BK filing.

Employees also can't stop a buyer from purchasing anything that's for sale.

You might also note that there is no such thing as "DCI employees". Delta can sell both of its subsidiaries if it wants to and SKYW is free to buy one of them or both of them if it wants to. That is not in question nor is it the issue.

While I don't know, my guess would be that all of ASA's and Comair's employees would prefer to be acquired by SKYW than to have no jobs. That's not the issue. The question is how SKYW deals with them after they're acquired.

My point is that unless SKYW deals in a way that the "acquired" feel is acceptable to them, SKYW is likely to bite off more than it can chew. Buyer's remorse won't take long to set in once SKYW discovers that dealing with 2000 - 3600 pilots that don't belong to their present choir can render the music flat.

Delta may well be eager to get rid of its subsidiaries, but that doesn't change Delta's need for feed. If Delta chooses to put all or nearly all of its feed into the hands of a single carrier (or 2) that's up to them. But, it may well lead to a severe case of ulcers in the future. Given that Delta is already suffering from acute indegestion, a dose of Pepto Bismol might be a better remedy.

I'm not against anything, and it would not matter one iota if I was. Both Delta and SkyWest can do as they please. We'll then see what happens after the fact.

Just remember, for every action there's and equal and opposite reaction.

 

[Jeff Helgeson]

Just make it as "ironclad as possible...

BTW, what's on paper is legally binding.

...but they often change what is on paper before the deal goes down. Plus, different carriers have different clauses and compromises have to be made.

I am not trying to be a wet blanket hear. I am just suggesting use caution. Some of the posts seem a little over confident and matter-of-fact we have it all wrapped-upish.

 

[General Lee]

There is another option for DL, and it's called 11. One way to quickly jettison yourself of unwanted baggage is BK. I wonder if the employees of DCI knew if their choice was SKYW or no job, which would they choose? I think mgt for DL would like nothing better than to flush wholly owned DCI and deal with contract carriers. With oil prices continuing to skyrocket, can 11 be too far off?

With a cash infusion, probably not. We also would get rid of some debt, which would help. I think a lot of this is a waiting game to see who outlasts eachother. USAir is obviously on a hit list, and if they were to fold, DL would do very well, primarily is the South and the connection cities from CLT---cities that Airtran and Jetblue wouldn't fly to like FAY, Wilmington NC, New Bern, Hickory, Kinston, etc. Prices would be raised there immediately. This sale is ONLY A GOOD THING for Delta, giving us extra cash needed to fight the fuel prices, and a debt reliever. Also, if fuel does go to $60 a barrel, expect more fuel surcharges to stick. NW just approved of a $20 a roundtrip raise, and it will go higher if fuel rises. No doubt there, even Southwest will probably join in.(they have done $2 surcharges before, and will probably go a little higher)


Bye Bye--General Lee