DL warns on losses and liquidity

[zonker]

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

It's worth what someone is willing to pay for it, which is nowhere close to a billion.

Smoking deal? Yea, don't bogart what you're smoking.

 

[lowecur]

the key statment by mgt

"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."

In other words, if UAIR finds investors on 3/15, you can bet DL will file BK protection in the not too distant future. Reason: they need to enter BK with as much cash as possible because of the above statement. It's the only chance they have to exit.

 

[chperplt]

It will happen, if Delta's needs are dire, they will sell and use the cash to survive. It makes sense.

You're right... It probably will happen. For your sake, I hope that's not the crux of the plan. If it is, you and your buddies will be flying for US Air wages before long.

Selling DCI is nothing more than a very small band aid being put on a gapping hole.

Surly your not so single minded to think this is the savior.

 

[Dizel8]

"Surly your not so single minded to think this is the savior".

Of course he isn't, he also counts on Song, Int'l and simplifares.

Who knows, he may be right!

 

[USCtrojan]

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?

Unless oil hits higher than $60 a barrel....Then it will be faster than that. Some analysts are speculating $80 a barrel may happen....

Trojan

 

[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.

Medflyer,

I love the part where you have turned into an "ANALCYST" and now know the worth of Comair/ASA. I guess Susan Donofrio has it wrong compared to you....

"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.



Bye Bye--General Lee

 

[General Lee]

You're right... It probably will happen. For your sake, I hope that's not the crux of the plan. If it is, you and your buddies will be flying for US Air wages before long.

Selling DCI is nothing more than a very small band aid being put on a gapping hole.

Surly your not so single minded to think this is the savior.

What, again? It has been known that we have a plan in place, to eventually save $5 billion a year, but that supposedly won't come into play until the end of 2006. So, what do we do in the mean time???? Hmmmmm. Well, we do whatever we can to make it to that date. We have some assets that we can sell that are not vital to our core business, since we can rent their services at the same time. So, we sell off some and use that cash to survive. Sound like a plan? Do you have a better one? Maybe when it is all over, we will still be standing and others will not, increasing our chances to survive even longer. If you think the guys at the G.O. don't have a plan, then you have your head up your arse. They are trying to figure out how to keep all of those options they were awarded----they could be very rich if we eventually succeed. Make sense yet? A Chap 11 wouldn't help them out. I am sure that is in the back of their minds too.


Selling DCI gives us cash and takes away some debt. Sounds like a plan that could help us out....


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"

Maybe his head is up his arse too?

Come on General, spin it baby, spin it!

 

[General Lee]

"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"

Maybe his head is up his arse too?

Well, now we have different analcysts battling it out. It depends on what type of a deal could be made after the sale---like a 10 year contract etc. If we bought them for $2.9 billion originally, and then wrote them down for $1.9 billion, I would guess (only a guess) that we could possibly get $1 billion, which would help us out. And, what about the debt payments that would go over to SkyWest? How much would that be worth a year to us? Could that cost us less in the long run?


Bye Bye--General Lee

 

[Dizel8]

Do you think, that SKYW wants to take all the debt? I personally doubt it!

Maybe 2.9B was too much to pay and certainly now it is not worth anywhere that much. Plenty of talk about to many 50 seaters flying around and that larger a/c are needed, perhaps that is part of the reason AWA invested in U, to have some place to place them.

Even if DAL signs a deal with SKYW and manages to off load a DCI, it will more than likely be under a cost plus plan similar to Mesa and U. Well, Mesa is making money on that, U is losing. So DAL could potentially see an increase in cost for feed, then what? It may work for short term gain and long term pain for DAL.