DL warns on losses and liquidity

[habubuaza]

I believe the real story here is that JetBlue is kicking Song's a$$ and Delta's attempt to go after Jetblue on the eastcost was not the smartest of moves.

 

[Dizel8]

Well, not sure I agree with that (Song), after all, DAL could not just sit back and watch jetblue move in. It was a good strategic move, but as for cost, who knows, although Song is "profitable" according to some.

 

[MedFlyer]

"A restructuring under Chapter 11 of the U.S. Bankruptcy Code may be particularly difficult because we pledged substantially all of our remaining unencumbered collateral in connection with transactions we completed in the December 2004 quarter as part of our out-of-court restructuring," Delta said in the filing.

Looks like DL might not be able to linger in CH11 like UA/US.

Delta said that even it meets that cost reduction target, it "may need even greater cost savings because our industry has been subject to progressively increasing competitive pressure."

BOHICA!!

 

[General Lee]

"A restructuring under Chapter 11 of the U.S. Bankruptcy Code may be particularly difficult because we pledged substantially all of our remaining unencumbered collateral in connection with transactions we completed in the December 2004 quarter as part of our out-of-court restructuring," Delta said in the filing.

Looks like DL might not be able to linger in CH11 like UA/US.

Delta said that even it meets that cost reduction target, it "may need even greater cost savings because our industry has been subject to progressively increasing competitive pressure."

BOHICA!!

Hold on one minute. They have to report things like this for legal reasons. Sure, things are weaker, but we have been saying all along that things would be tight at the end of the year, and selling a DCI portion could bring us through that tough time. Here is the quote:


"Delta, with a $2.2 billion loss in the fourth quarter alone, said it expected to meet its liquidity needs from cash flows from operations, available cash, aircraft financing and funding from a loan deal with American Express.

"Overall, this is pretty much in line with what they've been saying," said Susan Donofrio, an analyst at Fulcrum Global Partners who has a "buy" recommendation on Delta shares.

Delta could raise some $1 billion by selling its regional airline subsidiaries, she said.

"That will help them weather the revenue storm in the coming months and maintain sufficient liquidity," she said."


This was the plan, to sell off a portion of DCI and use the cash to outlast other weak airlines.


Bye Bye--General Lee

 

[General Lee]

And Song is making boatloads of money. Int'l is making so much money, some were left on the table etc, etc.

It's all good!

HA. It sure isn't helping your bottomline. And, that INTL flying is saving our a$$. We will sell off some of DCI to make up the difference. It is all about who can outlast the other right now.


Bye Bye--General Lee

 

[Dizel8]

ERLANGER – Delta Air Lines is not discussing the sale of its Erlanger-based subsidiary Comair with regional airline SkyWest, Comair’s top executive said today.

“This is a fact-based situation, and there are no discussions going on,” said Comair president Fred Buttrell in an interview. “I can’t speak for any other Delta assets, but as this applies to Comair, the possibility of us being sold to SkyWest is something that just has not come up.”

So which is it, for sale or not for sale, that is the question?

"HA. It sure isn't helping your bottomline. And, that INTL flying is saving our a$$"

Like I said, Song and Int'l will save the day!

 

[General Lee]

Dizel8,

Delta, with a $2.2 billion loss in the fourth quarter alone, said it expected to meet its liquidity needs from cash flows from operations, available cash, aircraft financing and funding from a loan deal with American Express.

"Overall, this is pretty much in line with what they've been saying," said Susan Donofrio, an analyst at Fulcrum Global Partners who has a "buy" recommendation on Delta shares.

Delta could raise some $1 billion by selling its regional airline subsidiaries, she said.

"That will help them weather the revenue storm in the coming months and maintain sufficient liquidity," she said.




I bet Susan could kick Barbara's a$$!


Bye Bye--General Lee

 

[Dizel8]

"I bet Susan could kick Barbara's a$$"!

I wouldn't know and don't really care!

 

[chperplt]

Delta could raise some $1 billion by selling its regional airline subsidiaries, she said.

This was the plan, to sell off a portion of DCI and use the cash to outlast other weak airlines

First of all, the word COULD does not mean will or can. Secondly, Delta couldn't sell ASA, CMR, and their stake in Republic for a total of 1 Billion in today's market place.

General.. How do you kknow what the plan was? Did GG discuss with you the "plan" to sell a portion of DCI? Are you taking his comments that they were looking into the possibility of a sale as fact?

Do you actually think that a sale will generate enough cash to outlast anyone else?

You're like a broken record General. Are you saying the same things over and over again to make yourself a believe that all will be well? What are you going to say when nothing changes or the breakup of DCI generates less than half of what you expect?

 

[General Lee]

ERLANGER – Delta Air Lines is not discussing the sale of its Erlanger-based subsidiary Comair with regional airline SkyWest, Comair’s top executive said today.

“This is a fact-based situation, and there are no discussions going on,” said Comair president Fred Buttrell in an interview. “I can’t speak for any other Delta assets, but as this applies to Comair, the possibility of us being sold to SkyWest is something that just has not come up.”

So which is it, for sale or not for sale, that is the question?

"HA. It sure isn't helping your bottomline. And, that INTL flying is saving our a$$"

Like I said, Song and Int'l will save the day!

Are you kidding me? They aren't talking? That is bull because we need the money and Comair isn't done taking cuts from the mechanics and stews, so the deal isn't ready yet. ASA is probably the first to go, and Skywest already said it was in a position to do it. I think we will get the money. I also see other airlines going out first, and that would help us too. Keep it up there Dizel, I have answers for everything....

Bye Bye--General Lee