DL warns on losses and liquidity

[DDpaysoff]

DAL already has that scar in the form of a $1.4B write down of ASA/CMR last quarter. It appears as if DAL has already come to the conclusion that owning ASA/CMR has resulted in a huge loss. As Grinstein has acknowledged in the past, DAL can still enjoy the economic benefit of ASA/CMR small jet lift without owning the equity in the companies.

That is only a paper loss and will allow dal to show a paper gain if/when they were to sell them. Of course they aren't worth today what they were when DAL spent 3 billion on them. They are probably worth about 900 million right now on the market, hence the 1.8 billion writedown. I believe it was 1.8 billion.

Is DAL's market capitalization the same as it was 5-6 years ago? Now you see that losing two thirds of your value ain't all that bad. DAL stock was in the 40's, had their value been reduced by 2/3 your stock value would be around $14 pre dillution from 2004 stock options and debt equity swap.

Yes, they can get the lift w/o owning them, but they can't get the profits. If ASA/CMR make a dollar on delta flying delta makes a dollar plus the lift, if CHQ SKYW make a dollar off detla flying delta makes 14 cents and the lift. Plus once the divesiture card is played you never get it back. That is a loss of a lot of future revenue for Dal, because they will essentially be paying more for the lift if it was all contract carriers. It would be a true act of desparation if DAL was to sell both wholly owned's.

 

[General Lee]

They may not get as much profit from not owning them, but we are also paring down costs by $5 billion a year by mid 2006. We will SUPPOSEDLY be LEAN AND MEAN. Those supposed profits will be made up by being lean elsewhere in the company. Then, they will just whipsaw the DCI carriers......



Bye Bye--General Lee

 

[KingAirKiddo]

They may not get as much profit from not owning them, but we are also paring down costs by $5 billion a year by mid 2006. We will SUPPOSEDLY be LEAN AND MEAN. Those supposed profits will be made up by being lean elsewhere in the company. Then, they will just whipsaw the DCI's.......



Bye Bye--General Lee

Spin it, baby, spin it!

Just kidding, General. Your loyalty to DAL is admirable. I do wish you'd stop painting all CMR pilots with the same broad strokes, though. We're not all "evildoers" as Dubya would say.

Take care...

 

[General Lee]

Spin it, baby, spin it!

Just kidding, General. Your loyalty to DAL is admirable. I do wish you'd stop painting all CMR pilots with the same broad strokes, though. We're not all "evildoers" as Dubya would say.

Take care...

KAK,

I think you came in later. This was mainly describing the people flying right after 9-11 and after your strike. Unfortunately, you are now grouped in with these people. Not everyone at Comair is "bad", but your group as a whole isn't well liked by a lot of people over here.

As far as my "spin", I try to be an optimist, but I try to back it up with any articles and "facts" that I can find. Also, I just report what I hear sometimes, and I don't really speak for the Delta pilots, but I know what most think. I also just give my opinions, and sometimes I am wrong. But, as I said I try to back up my statements as much as I can. A lot of people can't do that on this board. And, I can take flack---I take it everyday on this baord.


Bye Bye--General Lee

 

[KingAirKiddo]

You're right, I did come later. No worries, though...it's all good in this 'hood.

Hopefully your "spin" is right on target. We all have a lot to lose, whether we are wholly-owned or not.

I'm off to bed...talk to you some other day.

KAK