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Incompentence Air

MarylandONE

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FLYi quarterly loss widens; rev down 24%
Tuesday August 9, 2:10 pm ET
By Carla Mozee

SAN FRANCISCO (MarketWatch) -- FLYi Inc. on Tuesday reported a second-quarter net loss of $98.5 million, or $2.01 a share, compared with a loss of $27.1 million, or 60 cents a share, a year ago. Its pro forma loss was $1.13 a share. Revenue was $117.5 million, down 24% from $154.4 million a year ago. Traffic for the period rose 37.5% to 898.6 million revenue passenger miles. The air carrier's load factor fell 2.3 percentage points to 72.6%. Capacity rose 42% to 1.24 billion available seat miles.
 

Bryan D

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Bankruptcy Fears Sink Delta Stock

Bankruptcy Fears Sink Delta Stock


Provided By: The Associated Press
Last Modified: 8/9/2005 2:24:09 PM

By HARRY R. WEBER
Associated Press

ATLANTA (AP) -- Delta Air Lines Inc.'s battered stock fell anew Tuesday after a Wall Street analyst advised clients to sell their shares on fears the nation's third-largest carrier will file for bankruptcy within the next two months.

In morning trading on the New York Stock Exchange, Delta's shares fell 8 cents, or 3.6 percent, to $2.15. The shares had fallen as much as 15 percent in pre-market activity.

Prior to the dip, Delta's stock was already at a 43-year low.

The dip came on the heels of a research note by Merrill Lynch analyst Michael Linenberg, who lowered the Atlanta-based airline's rating from neutral to sell.

"We think the recent surge in fuel prices greatly increases the likelihood of a bankruptcy filing within the next two months," Linenberg said.

He said that while Delta, which has lost nearly $10 billion since January 2001, has been in talks with creditors about additional funding, he believes the surge in oil prices could keep lenders at bay for now.

He estimated that Delta's fuel bill this year could grow by more than $1 billion, wiping out the $1 billion of cost concessions provided by the airline's pilots last year.

"We think the probability of a Delta bankruptcy filing has grown, and we think investors should be mindful of Oct. 17, when more restrictive bankruptcy legislation becomes effective," Linenberg said. "That could be a key factor in a Delta deciding whether to file for Chapter 11 bankruptcy."

On Monday, Delta named a new treasurer after its previous treasurer left the company.

Delta's chief executive has said the company's current transformation plan, which includes cutting annual costs by $5 billion by the end of next year, is not enough to save the struggling carrier.

CEO Gerald Grinstein says Delta is still working hard to avoid a Chapter 11 filing, but he has acknowledged there are risks affecting the airline's ability to do that.

Delta, citing high fuel prices, reported late last month that it lost $388 million in the second quarter.
 

AZ Typed

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If you quit - you're a quitter. Don't you think it's better to go down kicking and screaming? Besides...I think most of the INDY folks would rather it be like this than to have stayed with UAL.
 

Bandit60

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AZ Typed said:
If you quit - you're a quitter. Don't you think it's better to go down kicking and screaming? Besides...I think most of the INDY folks would rather it be like this than to have stayed with UAL.

Are you kidding me.. Ask the pilots that dont have a job and can't put food on the table for their kids if they would rather have a job or no job at all.
 

AZ Typed

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Bandit60 said:
Are you kidding me.. Ask the pilots that dont have a job and can't put food on the table for their kids if they would rather have a job or no job at all.

They (indy) kicked me out (furloughed). I still put food on my table. My kids eat fine...because I planned for it! Pilots can flight plan...but that seems to be about it. But - you have a great point (no sarcasm).

AZT
 

sunchaser

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I'm furloughed and starting over. And I would do it all over again. The people love Indy Air and at least we opened the eyes of the public. We knew the risk and failed, but at least we tried and it felt good not to be under the broken wings of the United fu#ked up family.
 

100LL... Again!

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Winners never quit.

Quitters never win.

But those who never quit and never win are idiots.

------demotivators calendar
 

BenderGonzales

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What makes everyone think that if Indy declares Chap 11 they're disappear from the map?

Airlines stumble along in chapter 11 for quite a while. All they need it to find some clown with more money then sense to provide exit financing and "poof". Indy will have another chance or two to make a go of it (like Midway)
 

skyaddict

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To the original thread poster... Indy made a lot of mistakes, but if you want to call it by that name, sounds like you have some big axe to grind to hate them? As for Indy dying.. maybe, but half the losses are a write down, so 'real' losses were around half of the previous quarter. It wouldn't surprise me to see them dump all the RJs (maybe via Ch.11) before the year is out, in which case their survival is almost assured. Recall may be impossible in any meaningful time frame but if they survive, they may grow from the ashes. If you are SWA, you should (?) know that ultimate success doesn't come to those who don't take huge risks, like Kelleher did. From what I've heard, the airbuses are making money, and all the money is draining from the RJ side of the operation. Do I count on this- no. Do I think it's extremely unlikely? No.
 
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iflysky

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It was a noble effort, that unfortunately maybe never ended satisfactory,then again there were never any guarantees. It was the best, however, to tell the big U to go F itself and Johnny O to shove it. I will always be proud that one day I was part of Indy and will always miss the great people I flew with.
 

hawkerflyer

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Sounds like Stella's starting to clear her throat. All joking aside, good luck to all those affected, it's a brutal business.
 

Rez O. Lewshun

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iflysky said:
It was a noble effort, that unfortunately maybe never ended satisfactory,then again there were never any guarantees. It was the best, however, to tell the big U to go F itself and Johnny O to shove it. I will always be proud that one day I was part of Indy and will always miss the great people I flew with.

The wife and kid don't care where the money comes from. I can't feed my family on..... "It was the best, however, to tell the big U to go F itself and Johnny O to shove it. I will always be proud that one day I was part of Indy"

Indy was a joke. been there, got that T-shirt....

The clowns got thier go ahead from the BOD.... They don't care if it suceeds or not... When they are done with Indy Air they will get new jobs at some other operation...

Meanwhile, you and I are left with nothing and responsibilities....
 

Dizel8

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Huh?
Saying the Airbi makes money, but the RJ is losing seems entirely too simplistic. The RJ would no doubt partly provide feed for the bus, so lose the RJ, lose the feed.

Secondly, I have liitle doubt, that TED, SONG or jetBlue would be all over the Indy route map, if Indy went all Airbus. The route net work would be entirely too easy to overlap.

Hope Indy makes it, but I think slugging it out is the way to go, not to shrink into a tiny Airbi fleet.
 

skyaddict

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You are right, Dizel8, my breakdown was over-simplistic... a feedless FLYi may not make sense, though I suspect they'd still like fewer than 58 RJs. I am hoping they keep two types and at worst, shrink the RJ fleet down a bit more. Now, as far as Indy having made big mistakes... I believe the original business plan, even though ridiculed by the likes of analysts Ashcroft and Boyd, would actually have worked had it not been for a sort perfect storm of forces against it, including the fuel prices as well as a rather incompetent marketing team. And it's never over till it's over.
 

arthompson

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Not a real fan of KS and the boys, Indy was doomed from the start because of the management team. Most of the rank and file I would be proud to work with at another carrier (some of them I currently do)
 

Gillegan

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I flew on Independence Air a few months ago and I was impressed. They don't overbook, their overweight and rebooking charges are reasonable and you can take an earlier flight, space permitting with no charge. These are the kinds of things that folks say pisses them off about the airlines. Here is an airline that addresses those issues and they have a hard time. I agree with others that it's been the RJ's that have killed them. Those airplanes are the product of flawed logic. Not sure about the management team....there probably isn't an airline alive where the management isn't disparaged by the rank and file.
 

skyaddict

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That the frontline employees, esp. the pilots and FAs but also including some of the good apples amongst the ramp and CSR personnel, have gone to extraordinary efforts is clear. While there were "meltdowns" due to ramper shortages on groundstop days etc., those were the same sort that occur at any carrier when it's hub is hammered, but the pilots and FAs genuinely went to extra efforts compared to any regional working for a big mommy or daddy's fee for departure. Unfortunately T&K definitely were way too cocky for their own good as regards the business model of using RJs for LCC ops, and their egos let them fall through on the one thing that might have worked- an alliance with Virgin. Indy's A-319s are far and away, in my view, the most beautiful commercial airline liveries out there in North America right now, bar none, but they will probably soon be getting new paint jobs I suspect, as I now concede that I don't see any viable plan to keep a core surviving.
 

a319drvr

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It's been a real treat to operate the 'bus. All we can do is hope that a rabbit comes out of the hat soon. Until then, the challenge is to keep the spirits up, keep the passengers happy and hope for the best.
 

Cobra

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Dizel8 said:
Saying the Airbi makes money, but the RJ is losing seems entirely too simplistic. The RJ would no doubt partly provide feed for the bus, so lose the RJ, lose the feed.

Secondly, I have liitle doubt, that TED, SONG or jetBlue would be all over the Indy route map, if Indy went all Airbus. The route net work would be entirely too easy to overlap.

Hope Indy makes it, but I think slugging it out is the way to go, not to shrink into a tiny Airbi fleet.

It's very simple. You can't turn a profit with 50 seat RJs at LCC fares (any hopes of doing such is even more futile with current and future fuel prices). Even if the crew flew for free, the plane was filled, and you strapped a few extra passengers outside to the wing the flight would go ot and come back with a loss.

G
 
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