FDJ2 said:
FDJ2,
We all know that Delta has a "consolidated" financial statement with its subsidiaries ASA and Comair. Therefore, it will show in the SEC filing that the debt is "paid by Delta" simply because there is no other financial statement. ASA and Comair have no independent financial statements.
You are playing a game of smoke and mirrors. The question isn't who does the paying, it is where they get the money to pay. It is generated by the revenue produced by ASA and Comair and not only that, there is some left over to help pay the parent Company's bills.
It's an exercise in accounting and you know it. Over the last couple of years Delta has lost billions, and right now Delta doesn't generate enough revenue to pay its own expenses, let alone to pay anything for ASA and Comair. The source of the revenue for payment of ASA/CMR expenses comes from ASA/CMR operations.
Before ASA and CMR became subsidiaries of Delta both were highly profitable for extended periods and both paid their own bills, including the leases of aircraft, which both "purchased" with their own money. Unless Delta management did something to convert them into losing enterprises, their is no logical reason to assume that they can't pay for themselves without Delta's help, just as they did before. Your arguements are specious.
These self appointed "experts" on whose every word you are willing to hang your hat have a reason for advocating what they do. They have an agenda and it is called self-interest. Should DAL sell ASA and CMR, it will give them new accounts to analyze and draw charts, and make pronouncements about, which in turn will enhance their own exchequers. If analysts were right more often than wrong, we would all be wealthy investors.
You and the other DL advocates of sale have a self-interest as well. You think the money from a sale will somehow improve your own position.
What logical reason would Delta use to justify the sale of ASA and CMR, both of which produce profits for Delta, so that it can pay the money it gets to Delta pilots who currently are not generating any profit? It makes no sense.
When the company has successfully reorganized its overall operations and returned the DAL unit to profitability, that will be the time to consider the spin off of profitable subsidiaries.
When you're in financial crisis you retain assets and reduce liabilities, not the other way around. I understand you guys have your agenda and that's fine. Nevertheless a little more objectivity wouldn't hurt when trying to make your point.
