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Fitch lowers Delta's credit rating to B-

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jonjuan

Honey Ryder
Joined
Feb 26, 2004
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http://www.marketwatch.com/story/fitch-lowers-deltas-credit-rating-to-b?siteid=yhoof2

NEW YORK (MarketWatch) -- Fitch Rating lowered its debt rating for Delta Air Lines (DAL 5.74, +0.04, +0.70%) on Thursday to B- from B to reflect erosion in the Atlanta carrier's cash flow. "Despite large 2009 cost savings driven by the sharp decline in jet fuel prices from last summer's peak, Fitch expects Delta to report another year of substantially negative free cash flow in 2009 as the airline struggles to adjust capacity to a diminished level of demand," the ratings agency said. Delta's unrestricted liquidity of more than $5 billion may provide a bigger safety net compared to other legacy carriers, but steady erosion of its cash balance since last fall will make it more difficult to the airline to meet obligations, the firm said.
 
Thats weird. Delta is obviously trading in the upper 5 dollar range in the article and graph but the end of the article claims the shares were up to $8.90 at last check.

Something doesn't jive or maybe its a typo.
 
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Thats weird. Delta is obviously trading in the upper 5 dollar range in the article and graph but the end of the article claims the shares were up to $8.90 at last check.

Something doesn't jive or maybe its a typo.

The stock price has nothing to do with a company's credit rating! DAL is in big trouble, and some of the analysts are starting to see it! It really doesn't matter what your cash reserves are when you are burning through them way too fast!

-RA and Steenland will screw you up just as badly as United and US Air are screwed! Where are all those "synergies" when you need them? Airline mergers NEVER result in good news for employees or stock holders... The only ones who make out well are the upper managers-just look at their compensation-you would think the stock was on a rocketship to mars based on what he is making!
 
" Shares of Delta were up 6% at last check to $8.90" is the last sentence in the article. The writer is referring to the stock price, which is obviously inaccurate, not the credit rating.
 
The stock price has nothing to do with a company's credit rating! DAL is in big trouble, and some of the analysts are starting to see it! It really doesn't matter what your cash reserves are when you are burning through them way too fast!

-RA and Steenland will screw you up just as badly as United and US Air are screwed! Where are all those "synergies" when you need them? Airline mergers NEVER result in good news for employees or stock holders... The only ones who make out well are the upper managers-just look at their compensation-you would think the stock was on a rocketship to mars based on what he is making!

Hater!

Hope you are enjoying that seat on your CRJ because that's where you are going to be for quite some time if this continues. As happy as you are that Fitch lowered our credit rating, look at how much longer you are going to be in that seat.

I know it is really fun to be morbid about our careers and bag other guys that have it better than you, but just know that the worse it gets for Delta and the rest of the majors, the longer you will be sitting in your current seat.

You are right about the upper managers, but I am sure the same thing is going on at your airline. Rest assured. If you have a way to stop it, I'd love to hear it, otherwise try to stick to commentary on your airline because you have no idea of what the future holds for Delta or any other major for that matter.

All I can say is that your butt is going to be parked in that seat for a while until the ecopnomy turns around. Try to make the best of it. Good luck.
 
The stock price has nothing to do with a company's credit rating! DAL is in big trouble, and some of the analysts are starting to see it! It really doesn't matter what your cash reserves are when you are burning through them way too fast!

-RA and Steenland will screw you up just as badly as United and US Air are screwed! Where are all those "synergies" when you need them? Airline mergers NEVER result in good news for employees or stock holders... The only ones who make out well are the upper managers-just look at their compensation-you would think the stock was on a rocketship to mars based on what he is making!


Synergies work well in the business world when merging company operations or businesses. The airline are a different animal with no workable models to speak of on how to make money. Smart investors stay away from airlines and aviation in general unless you need a tax write-off.
 
Hater!

Hope you are enjoying that seat on your CRJ because that's where you are going to be for quite some time if this continues. As happy as you are that Fitch lowered our credit rating, look at how much longer you are going to be in that seat.

I know it is really fun to be morbid about our careers and bag other guys that have it better than you, but just know that the worse it gets for Delta and the rest of the majors, the longer you will be sitting in your current seat.

You are right about the upper managers, but I am sure the same thing is going on at your airline. Rest assured. If you have a way to stop it, I'd love to hear it, otherwise try to stick to commentary on your airline because you have no idea of what the future holds for Delta or any other major for that matter.

All I can say is that your butt is going to be parked in that seat for a while until the ecopnomy turns around. Try to make the best of it. Good luck.

In all seriousness-there is a way to stop it... The board needs to oust RA and Steenland. That will be very difficult, since they stacked the board itself with their own cronies! It would realistically take massive stockholder activism.

It is a very unfortunate time for DAL, and for the industry in general. RA and Steenland are making the classic mistake of behaving like the proverbial "800 lb gorilla." These guys are doing mean and nasty things to their employees, the stockholders, and wrecking the company in general..

Other airlines have gone down the "800lb gorilla" path before... How are they doing now? Decent mgmt at DAL would recognize that they have a serious flight ahead.. They need to keep every passenger and every employee happy as much as possible. When ALGT and SWA roll into town, they sure will wish they had.

I am not happy about what is going on-but RA and Steenland are doing no favors by running things in such an adversarial manner. It is only a matter of time before people have more choices in the ATL, and pissing them off now is not going to do DAL any good in the future.

-If you doubt this position, just ask any passenger who has suffered the misfortune of being stuck on a steaming SAAB in ATL this summer-they will back me up!
 
In all seriousness-there is a way to stop it... The board needs to oust RA and Steenland. That will be very difficult, since they stacked the board itself with their own cronies! It would realistically take massive stockholder activism.
You seem to have a very unhealthy obsession of Steenland and over estimate his part.
It is a very unfortunate time for DAL, and for the industry in general. RA and Steenland are making the classic mistake of behaving like the proverbial "800 lb gorilla." These guys are doing mean and nasty things to their employees, the stockholders, and wrecking the company in general..
What exactly are the mean and nasty things they are doing to their employees, the stockholders, and wrecking the company in general?
Other airlines have gone down the "800lb gorilla" path before... How are they doing now? Decent mgmt at DAL would recognize that they have a serious flight ahead.. They need to keep every passenger and every employee happy as much as possible. When ALGT and SWA roll into town, they sure will wish they had.
Again what are they specifically doing to make them unhappy? Not too worried about ALGT. Swa is a more formidable, but not impossible to deal with competitor.
I am not happy about what is going on-but RA and Steenland are doing no favors by running things in such an adversarial manner. It is only a matter of time before people have more choices in the ATL, and pissing them off now is not going to do DAL any good in the future.
Again give some examples of so called "adversarial manner"
-If you doubt this position, just ask any passenger who has suffered the misfortune of being stuck on a steaming SAAB in ATL this summer-they will back me up!
This is rightous coming from a crj boy. How about asking those same passengers who have suffered the misfortune of having their cities infiltrated with crappy little rjs?
 
In all seriousness-there is a way to stop it... The board needs to oust RA and Steenland. That will be very difficult, since they stacked the board itself with their own cronies! It would realistically take massive stockholder activism.

It is a very unfortunate time for DAL, and for the industry in general. RA and Steenland are making the classic mistake of behaving like the proverbial "800 lb gorilla." These guys are doing mean and nasty things to their employees, the stockholders, and wrecking the company in general..

Other airlines have gone down the "800lb gorilla" path before... How are they doing now? Decent mgmt at DAL would recognize that they have a serious flight ahead.. They need to keep every passenger and every employee happy as much as possible. When ALGT and SWA roll into town, they sure will wish they had.

I am not happy about what is going on-but RA and Steenland are doing no favors by running things in such an adversarial manner. It is only a matter of time before people have more choices in the ATL, and pissing them off now is not going to do DAL any good in the future.

-If you doubt this position, just ask any passenger who has suffered the misfortune of being stuck on a steaming SAAB in ATL this summer-they will back me up!

When ALGT and SWA roll into town???? they sure will wish they had?

That actually made me laugh.
 

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