DL warns on losses and liquidity

[General Lee]

General,

500 RJs?? ASA and Comair together only have about 320 at the most. Plus I don't think Delta OWNs these RJs. I think they're leased. I've heard Comair's RJs are atleast.

I seriously doubt $9 BILLION of the DEBT is from RJs as well.

Plus, this is where you are DREAMING:

Skywest is going to pay $1 BILLION to buy ASA and Comair to ASSUME $9 BILLION in debt. THAT WOULD BE PRETTY STUPID.

Hmmm, let's give Delta $1 billion so we can go in debt by $9 billion.

I DON'T THINK SO. THAT debt is Delta's and NO SALE is going to change that.

Jet

Jet,

You don't understand the situation. We don't sell planes and keep the debt. It doesn't work that way. All airlines have some sort of debt, and expanding ones create more. SkyWest would grow by a lot, and assume more debt. The cash would be for the operations and holdings. I will try to find the exact number for you.


Bye Bye--General Lee

 

[jetflyer]

General,

But since most of the planes are LEASED, don't they just assume the LEASES??

There would be no debt in this instance would there?

Jet

 

[General Lee]

General,

But since most of the planes are LEASED, don't they just assume the LEASES??

There would be no debt in this instance would there?

Jet

We do own quite a few of the planes, like all CR7s and over 100 CRJ50s. We also own facilities (gates, huffers, etc.) All of that would be counted. I am still looking for the exact number I read, and I will get that to you as soon as I can. I am off on a 4 day early tomorrow (today).


Bye Bye--General Lee

 

[michael707767]

General,

Had one of your Lieutenants on our jumpseat tonight. He says that you guys are about to get hit with another pay cut and your pensions are probably going the way of US Air and UAL.. Any truth to that??

I'll answer that one too. Lots of talk about it, nothing from the company. But, I would expect them to come after the pension and ask for about 10-15% pay cuts. Not eliminate the pension, but make more changes to it, effectively cutting in half what the guys with 25 years will get. The rest of us are ****** anyway.

Personally, I would rather restructure the retirement than take another pay cut. I can fund my own retirement, but I don't want to take pay cut after pay cut trying to save a pension which is toast no matter what we do.

 

[michael707767]

Skywest is going to pay $1 BILLION to buy ASA and Comair to ASSUME $9 BILLION in debt. THAT WOULD BE PRETTY STUPID.

Hey if you believe Delta management, the RJs are self financing, which is why they went into debt to buy them in the first place.
PS I have some land in Florida......

 

[~~~^~~~]

Where is fins?


Bye Bye--General Lee

General, I would love nothing more than to bring you a cup of coffee after completing the external inspection. One lump, or two?

In all seriousness, I'm pulling hard for Delta to pull through and have bought a few tickets on Delta recently while my airplane is kaput ( I fly normal rev for my other business ). The re-furbished MD88's are really comfortable and even have wood floors ( some Pergo sort of thing ) in the lavs. Delta's service is better and simpli-fares makes it practical to grab a last minute ticket at $400, when $1,200 would have put me behind the wheel of a car.

I have to disagree that 9Bn of debt is tied to the RJ's. Yes, they are captital leases which show up as debt, but at around eighteen million each they should gross out at 4.5Bn total. Perhaps the other debt was the acquisition cost, improvements to the operations and the strike. Do know how this works out?

~~~^~~~

 

[surplus1]

Hey General,

Why don't you get management to sell the shuttle as well as ASA/CMR? You could raise a few more bucks there.

Also I was thinking, since GG reportedly didn't like Song you could sell that too. A ready made LCC. That should raise a lot of bucks, don't you think?

 

[InclusiveScope]

Hey General,

Why don't you get management to sell the shuttle as well as ASA/CMR? You could raise a few more bucks there.

Also I was thinking, since GG reportedly didn't like Song you could sell that too. A ready made LCC. That should raise a lot of bucks, don't you think?

Maybe DAL could sell fictional novels on board their flights. The General could do the writing.

 

[michael707767]

Maybe DAL could sell fictional novels on board their flights. The General could do the writing.

I doubt even Gen Lee could match the fictional drivel put out by you boys from the RJDC.

 

[On Your Six]

I think Delta should have declared Chapter 11 a long time ago to clean the slate and rework certain non-labor contractual agreements. People need to recognize that a lot of this talk is "posturing" in order to force certain parties to the bargaining table. It's classic negotiation 101. Certainly Delta is facing some serious financial problems, but a lot of this posturing is completely planned.

And by the way, don't think that Continental is out of the woods either - their situation is not much better than Delta's current situation...

 

[Vikedog64]

I think Delta should have declared Chapter 11 a long time ago to clean the slate and rework certain non-labor contractual agreements. People need to recognize that a lot of this talk is "posturing" in order to force certain parties to the bargaining table. It's classic negotiation 101. Certainly Delta is facing some serious financial problems, but a lot of this posturing is completely planned.

And by the way, don't think that Continental is out of the woods either - their situation is not much better than Delta's current situation...

All the majors have 2 years tops to reorganize in or out of BK..

 

[zonker]

And by the way, don't think that Continental is out of the woods either - their situation is not much better than Delta's current situation...

DAL has double CAL's debt and lost 5.2 billion last year. CAL lost 206 million.


I don't think CAL is "out of the woods", but I think you're exaggerating here.

 

[AirBoard]

When your in dire straits you're not in a position to control negotiation, isn't that obvious. Getting a billion eh! How many buyers of your regionals are there?????? One potential buyer and the sellers close to bankrupcy.....I smell a fire sale.

 

[PCL_128]

I doubt even Gen Lee could match the fictional drivel put out by you boys from the RJDC.

To quote the General: "Ohhhh, snap!"

 

[Snake]

Seems to me you Delta boys took Value Jet way to lightly. To let a scumb carrier like that kick your a** in your own backyard (ATL) is a shame. Delta will pull through this and will crush Air Trash, I mean Air Trans in the end. A chapter 11 filing isn't all that bad. Look at UAL and US Airways. From what my sources tell me, Value Jet is struggling much more than they are letting be known. Good Luck Delta. The rest of us are pulling for you.