Goodbye pension, here comes next pay cut

[DDpaysoff]

The last "tree shake" I hope so.

Wall street longs are betting Us Air liquidates before DAL files ch. 11.
I don't think DAL wants to divest "A" regional sub, but it may be forced to.
Anybody know the strike price on the stock options for DAL pilots? I want to say 7.25 or so, but I don't know.

This is a truly horrible day in the stock market. Unless you are trading CTTY or BDCO

 

[skykid]

Wall street longs are betting Us Air liquidates before DAL files ch. 11.

Maybe, but all that does is buy some time.

 

[General Lee]

The last "tree shake" I hope so.

Wall street longs are betting Us Air liquidates before DAL files ch. 11.
I don't think DAL wants to divest "A" regional sub, but it may be forced to.
Anybody know the strike price on the stock options for DAL pilots? I want to say 7.25 or so, but I don't know.

This is a truly horrible day in the stock market. Unless you are trading CTTY or BDCO

IT would help tremendously if USAir stopped flying, primarily due to the connection traffic in the SE. Airtran and Southwest may try to go into CLT and fly to larger cities, but all of the medium sized cities in the SE, like Florence SC, and Fayettville NC, etc. would lose USAir service.

The strike price for us was in the low $7 range, and most of the officers got over 300,000 options at that price. I would think they would try whatever it takes to stay above Chap11. And, why not rent your regional service, with a multiple year contract? Why own? A little more control maybe, but that is it.


Skykid,

Time is what we need, and a DCI sale also offloads some debt.


Bye Bye---General Lee

 

[DDpaysoff]

General, I can see comair or asa raising more money via an IPO than partial asset sales to skywest. Comair is looking pretty lean, so I could see that happening really quick. If you could get 500 million from one of those that buys some more time to allow the other cost cutting initiatives to take effect.

The bottom line is the Gov't needs to stop subsidizing the dying so the 'relatively' strong carriers left (i.e.) out of Ch. 11 can begin to recover. Air transportation stabilization board is kiling everybody, so the dead can live a little longer.

Like you said, this is not news. This is stating the obvious. "Dal may have to file for bancruptcy protection if it's financial situation WORSENS."

Is this a surprise to anyone? There are probably about six carriers that can replace the word Dal, with theirs and say the same sentence.

No panic selling here.

 

[chperplt]

The bottom line is the Gov't needs to stop subsidizing the dying so the 'relatively' strong carriers left (i.e.) out of Ch. 11 can begin to recover. Air transportation stabilization board is kiling everybody, so the dead can live a little longer.

BINGO... Give this man a cigar!!

 

[f9driver]

General, General!

Slow down and make sure you are taking your meds. 15 posts in 15 minutes.... Even for you that must be a new record. You are like a little kid who is afraid Mommy is going to take your lollipop away but once in a while you see a bigger lollipop... like 777 Capt. In the end if you lose it it won't be the end of the world. It's only money and many have gone before you. I might add, most of them with a lot more class

 

[chazman]

Time is what we need....

Unfortunately, this has been the strategy of most of the major carriers in this downturn. With oil at these levels, revenue as low as it has been due to internet based fare elasticity, changes need to be made that don't involve waiting on capacity to go down.

My $0.02,

Chaz

 

[General Lee]

Unfortunately, this has been the strategy of most of the major carriers in this downturn. With oil at these levels, revenue as low as it has been due to internet based fare elasticity, changes need to be made that don't involve waiting on capacity to go down.

My $0.02,

Chaz

You can't downsize, because the LCCs will fill in behind. Leo Mullin parked a bunch of our planes, and then Airtran expanded. Then, the government likes to give everyone too much time in Chap 11, and then that pulls the rest of the legacy carriers down too. LCCs have an advantage because of longevity. Most of the stews for example at the LCCs have a few years with the company, and therefore are paid at a lower rate. Most of the remaining stews at the legacies have 30 plus years, and they are paid at top rate, for substandard service compared to perky newhires at the LCCs. That is just one example. Some jobs do require more experience. Some do not.


It is frustrating.


Bye Bye---General Lee

 

[BID]

Posted by the General:

Delta, with a $2.2 billion loss in the fourth quarter alone, said it expected to meet its liquidity needs from cash flows from operations, available cash, aircraft financing and funding from a loan deal with American Express.
"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

When was this statement made? Did DAL assume the price of oil at approx. $40.00 per barrel? I recall reading an article that DAL had assumed its financial obligations would be met, but only at a oil price of approx. $40. per barrel. Regarding the $1 billion for its regional airline, was this before the accounting charge of 2004? It turns out the market value for the regional airlines was substantially lower than previously reported.

Some one posted, "Time is what we need" That's what your CFO "bought" and "thought" shortly after 9-11. DAL had one of the best balance sheets out there, but your managment thought buying time would be the answer. Now DAL is so heavily in debt that even Chapter 11 will be very difficult.

Will DAL benefit at the expense of US Air? I don't know, we all know there is too much capacity, but I think any benefit would be slow and too late. Plus, you know the LCC airlines are ready to move in.

Look, I am not an expert in this industry, no analyst here. I learn from the articles I read. I sincerely hope your managment finds a way out and if there is another round of labor cuts, I hope they are a minimum. Heck, we are tied at the hip.

(Yes, it is frustrating.)

 

[737 Pylt]

If only "FlyDeltasJets" were on the board now. If you're lurking Patrick all I can say is "I told you so".

Arrogance is a thin shield in this industry. Perhaps you have learned that simple fact out on the street these last couple of years?

If you're poking fun at someone who is on the street, then you better remember the old saying about "glass houses." Funny how you write about arrogance!
737