DL warns on losses and liquidity

[chperplt]

(after Comair gets its union situations irons out---Pilots already bought

What situation(s) would that be, private?

 

[General Lee]

What situation(s) would that be, private?

Stews and mechanics ironing out their agreements to make a sale smoother.


Bye Bye--General Lee

 

[chperplt]

The Mechs are just about done, so Freddy says. The stews aren't going to budge.

 

[General Lee]

The Mechs are just about done, so Freddy says. The stews aren't going to budge.

Hence, no sale YET.


Bye Bye--General Lee

 

[cl65capt]

I always knew those stew's were a smart bunch.

 

[DDpaysoff]

An IPO would certainly(at this time) make more sense, when you consider the new crew bases announced by Comair. I would hardly think DAL would "muddy" the water of selling an asset by such a move. The more likely move would be to spread the resources for growth.

There is no way Skywest could afford to buy Comair AND ASA. In fact, they probably couldn't even buy comair OR ASA as whole units. They could however, hedge their future by attaining certain assets that are currently on the wholly owned property.

Delta can pressure asa pilots by selling a/c to skywest and a long term contract for say, I don't know 17 CRJ-700's. Thus, scaring ASA pilots into a substandard contract. Why would Skywest invest EVERYTHING they have in 70% of ASA? They would have to finance the rest. This goes against everything they have done. Shareholders would be appalled. That defies the purpose of hedging. Comair will be an IPO or wholly owned. There is no other way. DCI was working, Butrell is at Comair for a reason.

Here is SKYW balance sheet. All nunbers are in thousands.

AssetsCurrent AssetsCash And Cash Equivalents53,566 79,645 70,842 121,567 Short Term Investments444,191 397,590 385,243 358,827 Net Receivables94,401 84,768 81,640 75,100 Inventory33,244 31,122 27,266 26,080 Other Current Assets91,065 92,842 109,347 88,794 Total Current Assets716,467 685,967 674,338 670,368 Long Term Investments- - - - Property Plant and Equipment898,951 909,300 900,406 843,918 Goodwill- - - - Intangible Assets- - - - Accumulated Amortization- - - - Other Assets16,464 16,519 16,527 14,924 Deferred Long Term Asset Charges- - - - Total Assets1,631,882 1,611,786 1,591,271 1,529,210 LiabilitiesCurrent LiabilitiesAccounts Payable118,976 113,633 101,986 107,572 Short/Current Long Term Debt33,371 32,587 33,151 30,877 Other Current Liabilities17,478 14,954 17,005 13,510 Total Current Liabilities169,825 161,174 152,142 151,959 Long Term Debt474,286 479,857 490,924 462,773 Other Liabilities- - - - Deferred Long Term Liability Charges230,832 222,191 220,802 205,415 Minority Interest- - - - Negative Goodwill- - - - Total Liabilities874,943 863,222 863,868 820,147 Stockholders' Equity Misc Stocks Options Warrants- - - - Redeemable Preferred Stock- - - - Preferred Stock- - - - Common Stock332,025 331,990 327,357 327,028 Retained Earnings457,932 438,403 420,099 402,469 Treasury Stock(32,551)(20,285)(20,285)(20,285)Capital Surplus- - - - Other Stockholder Equity(467)(1,544)232 (149)Total Stockholder Equity756,939 748,564 727,403 709,063 Net Tangible Assets$756,939 $748,564 $727,403 $709,063

 

[DDpaysoff]

That didn't come out like I wanted it too. Here is a link:

http://finance.yahoo.com/q/bs?s=SKYW

Very healthy company, but in no position to invest 500 million in a company that feeds exclusively to one carrier. I have a feeling this is about CRJ-700's. I hope I am wrong. How are those skyest -700 rates looking anyway?

I KNOW THAT WHOLE 18 MONTH ANYTHING LESS THAN 100 SEATS WILL BE FLOWN AT 50 SEAT RATES THING WAS REALLY ONLY GOING TO LAST 18 MONTHS, RIGHT?

 

[General Lee]

That didn't come out like I wanted it too. Here is a link:

http://finance.yahoo.com/q/bs?s=SKYW

Very healthy company, but in no position to invest 500 million in a company that feeds exclusively to one carrier. I have a feeling this is about CRJ-700's. I hope I am wrong. How are those skyest -700 rates looking anyway?

I KNOW THAT WHOLE 18 MONTH ANYTHING LESS THAN 100 SEATS WILL BE FLOWN AT 50 SEAT RATES THING WAS REALLY ONLY GOING TO LAST 18 MONTHS, RIGHT?

They have over $500 million in cash and a $1 billion line of credit. I bet they can afford it......


Bye Bye--General Lee

 

[DDpaysoff]

They have over $500 million in cash and a $1 billion line of credit. I bet they can afford it......


Bye Bye--General Lee

But, they can't afford the risk? They have a very conservative approach regarding growth. I don't see that changing overnight. But, I suppose if DAL, ''gives them an offer they can't refuse"....

Don't worry, if need be, you can get 450 million from Comair via an IPO. 325 million before pay freeze and a/c. Do you think butrell will get a bonus?

Nice move today on DAL. Crude diving later this week/early next, usair bad news later this week, GA fuel tax limt, Jet Blue raising fares. Nice move coming. Penny to be made.

 

[Dave Siegel]

Then everyone else (USAir and UAL, maybe others) could be in Chap 7 or worse. It is all about outlasting the others right now.


Bye bye--General Lee

Except for SWA, JB, AAI, Am West, and Frontier, who actually try to treat the passengers well. I guess that's "beneath" AA, DL, and UAL.