DL warns on losses and liquidity

[XRMEFLYER]

How long before the whiz kids at the puzzle palace burn the money they raise by selling CMR and ASA? At the current pace that should buy them another 6-12 months. Then what?

 

[Dizel8]

Just reporting what Comairs top executive said. I am not privy to the internals, maybe you are!

 

[lowecur]

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

You don't actually believe DCI is worth anything do you? DCI is tied at the hip with DL, and there is no one that is gonna pay anything for DCI ($200M tops), unless DL gets a cash infusion of at least a billion. Investors keep throwing bits and pieces at these carriers hoping someone else will blink and fold. The best thing that could happen to DL would be for UAIR and UAL to go out of business. It will be interesting on 3/15 to see who steps to the plate for the UAIR exit financing. My guess is the price of oil will scare off potential investors, plus the Feds were clearly upset with the X-mass fiasco. The investment community is in charge of who lives or dies in the next 9 months.

 

[chperplt]

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

Dude..get your facts straight. The Mechs aren't taking a cut. They are being offered a raise.

 

[General Lee]

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?

Well, I did hear a probable plan from someone in a lounge meeting, that gave a general idea of what could happen. (They couldn't tell us exactly, you know that) But, so far it has been close to what was said.

Also, I have a feeling we could get a good price, maybe not the purchase price, but a fair price. I am glad you know your market worth. I think Delta wrote the two of you off for $1.9 billion? I bet we could get half or more of that. That would tide us over for a while and the others would still struggle. That appears to be the plan....


Bye Bye--General Lee

 

[MedFlyer]

Also, I have a feeling we could get a good price, maybe not the purchase price, but a fair price. I am glad you know your market worth. I think Delta wrote the two of you off for $1.9 billion? I bet we could get half or more of that. That would tide us over for a while and the others would still struggle. That appears to be the plan....

Bye Bye--General Lee

A year ago, you were predicting that DL pilots would only take a 13.5% pay cut because the whiz kids at DALPA said that was all DL needed. Of course, we all know how far off you were on that prediction.

You really think DL can get a Billion for Comair/ASA....considering that both Comair/ASA are contracted to a failing parent company?

Even if somehow miraculously DL got that much, with fuel prices being what they are, it'll be gone in a year. Then what? Keep praying someone else dies first....not much of a business plan.

 

[General Lee]

Dude..get your facts straight. The Mechs aren't taking a cut. They are being offered a raise.

The fact is that there are things that still need to be take care of at Comair before a smooth sale. How about the stews? You guys already took the bait. There is no reason for Delta to hold on to the DCI carriers, a deal could be made to "rent" your services and Delta could use the cash. It will happen, if Delta's needs are dire, they will sell and use the cash to survive. It makes sense.


Bye Bye--General Lee

 

[General Lee]

How long before the whiz kids at the puzzle palace burn the money they raise by selling CMR and ASA? At the current pace that should buy them another 6-12 months. Then what?

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

 

[General Lee]

A year ago, you were predicting that DL pilots would only take a 13.5% pay cut because the whiz kids at DALPA said that was all DL needed. Of course, we all know how far off you were on that prediction.

You really think DL can get a Billion for Comair/ASA....considering that both Comair/ASA are contracted to a failing parent company?

Even if somehow miraculously DL got that much, with fuel prices being what they are, it'll be gone in a year. Then what? Keep praying someone else dies first....not much of a business plan.

A year ago I wasn't in the negotations, and I predicted Delta needed more than 13.5%. I always thought it would be higher than that, come on now.

Do I think DL could get more than $1 billion? Yeah. It is worth at least twice that. Other things would be tied into that, like a 10 year deal for SkyWest etc. Even at $1 billion, SkyWest would be getting a smoking deal, and a concrete DL deal as a part of that, which provides some security---as much as you can give these days. SkyWest would like to know for sure what they are doing too, because they are anchored to 2 unstable airlines. They saw the Indy experiment, and they own a bunch of RJs.


Bye Bye--General Lee

 

[Dizel8]

"Neidl speculated Delta was holding off on a sale to get a better price, but predicted the airline could get only "a few hundred million for each" regional airline.

That would be a far cry from the $700 million Delta bought ASA for in 1999 and the $1.8 billion it spent for Comair in 2000.

Neidl predicted Comair would be a tougher sell because its costs are higher than its sister regional ASA.

Delta has sold other assets to raise cash. Last summer it raised $285 million from selling its 40 percent stake in Worldspan, a computer reservation system."

Not looking like a lot to be made on selling ASA or Comair!