Delta to use cash to outlast competitors

[HA25]

Just a guess, but maybe the WSJ was technically correct in saying that ExpressJet and Eagle have more than either Comair or ASA separately. However when combined, ASA/Comair is the biggest.

That must be it, total fleet size, not just jets... Whether they are jets or props shouldn't really matter if they are used for feed, and not to replace mainline flights.. or if they are doing mainline flying, as long as it's to build up a route for the mainline..

I must admit though, that DAL is probably not using all of it's RJ's for feed...

 

[General Lee]

FLX757,

Didn't I say that Ryanair(in the other persons posts) was actually Ryan International Airlines? Re-read my post. I know the difference between the two. Ryanair in Europe also has hubs in London Stanstead, Frankfurt Hahn, Brussels Cherloi, and a new one in Milan Bergamo.

I thought I read somewhere that Airtran was going to purchase 60 A320 aircraft. I wonder if Boeing would consider making the 717-300 with extra range? Getting away from one type of aircraft or "derivative" aircraft (like Southwest has with the 737's) might not be wise for a LCC. One aircraft type allows you to buy extra spare parts etc. at lower costs and have fewer training costs. I know Delta is trying to install the same "flight deck panel" in all of the 737-800, 757, 767,764, and 777 aircraft, (at $2mil a pop for installing new panels in older 757's and 767's) and get them to be on a single type rating. I was told that the FAA has approved that for Delta. It will be interesting to see what Airtran does.

Bye Bye---General Lee

 

[flx757]

General,

I was just messing with you with the Ryanair deal...plus giving a little insight to Ryan Int'l, having formerly flown there on the passenger side of the operation.

As far as which aircraft AirTran winds up with....who knows? I read the same article about the 60 A320s, but there were numerous errors in that article, so I take it with a grain of salt at this point. Boeing has indicated they will make a decision by summer about producing the 717-300, however, I'm sure it will come down do whoever comes up with the best deal. Plain and simple. We hear all sorts of rumors, up to and including that if they go with the 319, that eventually all the 717s will be replaced by the A320 family. Personally, I believe that the talk and rumors are all just posturing as part of the ongoing negotation process. I guess time will tell.

 

[General Lee]

FLX 757,

That is interesting. I know that Leo did the same thing with Boeing recently (atleast that is what I have heard...). Apparently he and some other execs were supposed to go up to Chicago (Boeing's new base of ops) for a couple days of fun with the Boeing people and listen to them spout off about the 737-600 etc (We were looking for 100 seaters--the -600 has 106 seats). Well, Leo and his cronies show up with no overnight bags, and after a presentation tell the Boeing people, "Hey, we have to get back to ATL ASAP, we have to go to Europe tonight...." (Airbus)
That supposedly spooked Boeing a little bit. I don't really know if this story was true, but it sounds like a shrewd business move.

I have jumped a lot in A320 cockpits (pre-911), and I thought they were really nice and "pilot friendly." The cockpit layouts were really comfortable, and the sidestick looked neat. The one thing I thought was offensive was the fact that the flight computer started calling the PF a "retard" just before landing. God, the French really hate us. (Kidding!!!!)(Joke) I think you will like the Airbus if you get them.

Bye Bye----General Lee

 

[120% Torque]

Worldspan sale price estimated at $800 million-$1 billion
Dateline: Thursday March 06, 2003

American Airlines, Delta Air Lines and Northwest Airlines stand to reap a handsome profit from the sale of Worldspan to Travel Transaction Processing Corp. if the deal is consummated (ATWOnline, March 5).

The buyer is a new company owned by Citigroup Venture Capital Equity Partners and Teacher's Merchant Bank, the private equity arm of the Ontario Teacher's Pension Plan.
Although the parties to the transaction have not disclosed the price to be paid, Salomon Smith Barney's Brian Harris estimated in a report released late Tuesday that the sale "could fetch between $800 million and $1 billion pre-tax" for the three airlines. As the largest shareholder in Worldspan with a 40% stake, Delta potentially could net $190-$250 million on an after-tax basis, according to Harris. Northwest, with 33.7%, would make $160-$200 million while American's 26.3% share could provide that carrier with $125-$160 million in much-needed cash

 

[General Lee]

That $150-250 million after taxes will definitely help our cash position, and some people speculate that the cash may be used to help buy some parts of UAL---now that the unions over there lost their veto rights to asset sales. (with the start of the "sunset" provision) I have also read that Delta and the others have been trying to get rid of that venture, instead working on the use of Delta.com for internet sales.

Bye Bye---General Lee