The regulators need to realize that suicide is not competition.
Very well said.
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The regulators need to realize that suicide is not competition.
They are revising their figures in a positive direction. Either something is going better than planned, or they were too conservative, or all this is eyewash.The facts are , and have been stated by several economist, mergers are expensive and risky. Combine that with a down enviroment and the results are plain to see.
For you or anyone to play this as something it isn't is disingenious at best. The facts are the cost of this merger is being downplayed.
Delta today doubled its target for new revenue and savings from the planned merger with Northwest Airlines Corp. to $2 billion, and said it will pull 30 more regional jets out of service to save on fuel. ... Delta said its profit was $137 million for the quarter, or 35 cents a share.
New Savings Target
The carrier created $12.3 billion in goodwill when it left court protection in April 2007. That accounting step reflected the excess value of the reorganized company over the estimated fair market value of its assets at that time. Delta wrote down about half of its goodwill in the first quarter.
Delta's new savings target for the merger compares with its April goal of $1 billion. Analysts including UBS Securities LLC's Kevin Crissey have said the previous target fell short of necessary cost cuts.
One-time merger integration costs will be $600 million over three years, Delta said today, less than the $1 billion it estimated in April.
Delta will park 100 regional jets after the peak summer travel season is over, up from its earlier goal of 70. Delta is also pulling as many as 20 of its larger mainline planes out of service as it tries to reduce domestic seats by 13 percent by the end of the year to lower costs.
When I go to the Delta web site I get $1,388 to $1,578 for one of three ASA flights daily.From the Delta weekly specials Email:
Atlanta, GA (ATL) to Providence, RI (PVD)$119
Congrats to DAL! Very impressive in this current environment.
Wow - If you find it so easy to dismiss your fellow pilots it makes me hope that your airline does fold so that I can keep my job.
Yeah very impressive..."Delta will park 100 regional jets after the peak summer travel season is over, up from its earlier goal of 70. Delta is also pulling as many as 20 of its larger mainline planes out of service as it tries to reduce domestic seats by 13 percent by the end of the year to lower costs."
Your ALPO dollars at work!...or should I say in a coma!
...and the ALPO pilots that go with them? That's OK with you,huh PFT boy?As far as I'm concerned, parking fuel-guzzling replacement jets is a good thing.
Lowcur:If oil swings to $100 bbl after Oct 15th (my cutoff date for major hurricane damage in Gulf), then some of the hedges may be under water or a wash. In either case, oil at $100 bbl will help the industry at the end of 08 and all through 09. The key will be each airlines ability to coordinate a steep reduction in capacity and still keep their head above water.
If you want to invest in this industry here in the US, just wait until after 10/15/08, and place your bets on the probable survivors.....the ones that won't need a bailout.....as the Fed may just may not be able to help the airline industry and instead let foreigner's in the hen house.
imp: