Maybe Uncle Jerry can loan DAL some money....

[ASABound]

http://www.bloomberg.com/news/2011-...n-loan-to-repay-existing-debt.html?cmpid=yhoo

 

[damnflyboy]

He did it for United.

 

[the palm]

But he's not dumb enough to loan it to Delta.

 

[Erlanger]

But he's not dumb enough to loan it to Delta.

Don't laugh! I would think he will and not because he's dumb, though I doubt he'll lend them the full amount they want. He just might and could possibly be in talks as we type. In addition to interest, Jerry will do it mainly for additional flying guarantees and to have more control over things with them. He's complained before that Skywest, Inc doesn't have the same control over Delta as they do with United and they can be real difficult to deal with. But Delta may be smart enough to realize this and not deal with Jerry. I'm sure they can find the money somewhere else.

 

[johnpeace]

Jerry will do it mainly for additional flying guarantees and to have more control over things with them. He's complained before that Skywest, Inc doesn't have the same control over Delta as they do with United and they can be real difficult to deal with. But Delta may be smart enough to realize this and not deal with Jerry. I'm sure they can find the money somewhere else.

That seems plausible to me.

Additionally, DAL could use the terms of the loan as leverage for additional 76 seat scope from it's pilot group. "No more 76 seat jets? OK...are the pilots going to finance $200mil for us? I didn't think so." ...or something along those lines.

Could be a win/win for Jerry and Dick.

 

[On Your Six]

But he's not dumb enough to loan it to Delta.

Delta doesn't need your money, they have plenty. They paid down $2 billion in debt in 2010 alone, saving $500 million a year in interest payments per year. You may need more when the Continental and United pilots close the door on any future growth for you. Parking remaining 50 seaters will get expensive. Higher oil and new contracts have you paying for it now. And Delta has $5 billion in cash anyhow. Why the loan then? Maybe it will help merge with Alaska, or get out of your contracts so you can saddle up with United exclusively. That would be my hope. You guys are way too cocky for guys flying RJs.

OYS

 

[wmuflyguy]

Why the loan then? Maybe it will help merge with Alaska, or get out of your contracts so you can saddle up with United exclusively. That would be my hope. You guys are way too cocky for guys flying RJs.

OYS

Like the article said, to pay off the higher interest debt with a lower interest loan. Like refinancing a house

 

[XPOO]

Delta doesn't need your money, they have plenty. They paid down $2 billion in debt in 2010 alone, saving $500 million a year in interest payments per year. You may need more when the Continental and United pilots close the door on any future growth for you. Parking remaining 50 seaters will get expensive. Higher oil and new contracts have you paying for it now. And Delta has $5 billion in cash anyhow. Why the loan then? Maybe it will help merge with Alaska, or get out of your contracts so you can saddle up with United exclusively. That would be my hope. You guys are way too cocky for guys flying RJs.

OYS

United wants more 50-seaters. 403SW and 405SW were supposed to be taken offline and handed back since their leases had finally expired, but United wanted to keep them. SkyWest has extended the leases on them. Got any more myths I can bust?

 

[BOX OFFICE]

Delta doesn't need your money, they have plenty. They paid down $2 billion in debt in 2010 alone, saving $500 million a year in interest payments per year. You may need more when the Continental and United pilots close the door on any future growth for you. Parking remaining 50 seaters will get expensive. Higher oil and new contracts have you paying for it now. And Delta has $5 billion in cash anyhow. Why the loan then? Maybe it will help merge with Alaska, or get out of your contracts so you can saddle up with United exclusively. That would be my hope. You guys are way too cocky for guys flying RJs.

OYS

Let me go on the record as saying that this is the opinion of one man with a very small penis, not that of the Delta pilot group as a whole. Many of us came from the regionals and understand what its like. Ignore the internet tough guys like the above. These are the ones who will kiss your butt when they want your jumpseat, then tell their friends how much it sucked to have to ride an RJ.

Check your six: get real. You are no better than them because you fly a bigger plane. Give the regional pilots a hand, not a foot. Jerk. You make us all look bad (that is if you're even really a DAL pilot and not trolling).

 

[ASAFOE120]

Let me go on the record as saying that this is the opinion of one man with a very small penis, not that of the Delta pilot group as a whole. Many of us came from the regionals and understand what its like. Ignore the internet tough guys like the above. These are the ones who will kiss your butt when they want your jumpseat, then tell their friends how much it sucked to have to ride an RJ.

Check your six: get real. You are no better than them because you fly a bigger plane. Give the regional pilots a hand, not a foot. Jerk. You make us all look bad (that is if you're even really a DAL pilot and not trolling).

Great post Box Office. Well said.

 

[Jar Jar]

This is about debt restructuring. Companies do it all the time. In the case of Delta, DAL mgmt has publicly acknowledged many many times over the past year that they think they can produce the best return on investment by recuding debt loads more so than investing in their product. This is hardly newsworthy.

 

[20sx]

As written above:

"They paid down $2 billion in debt in 2010 alone, saving $500 million a year in interest payments per year.

Is it possible Delta has interest rates that high? Did Goldman Sachs write this deal?

 

[Medeco]

Delta doesn't need your money, they have plenty. They paid down $2 billion in debt in 2010 alone, saving $500 million a year in interest payments per year. You may need more when the Continental and United pilots close the door on any future growth for you. Parking remaining 50 seaters will get expensive. Higher oil and new contracts have you paying for it now. And Delta has $5 billion in cash anyhow. Why the loan then? Maybe it will help merge with Alaska, or get out of your contracts so you can saddle up with United exclusively. That would be my hope. You guys are way too cocky for guys flying RJs.

OYS

Wow, another self appointed industry expert tough guy.

Also known as a DAL pilot.

 

[wmuflyguy]

As written above:

"They paid down $2 billion in debt in 2010 alone, saving $500 million a year in interest payments per year.

Is it possible Delta has interest rates that high? Did Goldman Sachs write this deal?

I'm sure they had some very high interest debt from the BK. But 25% does seem a little high, but not unbelievable.

 

[wilde737]

United wants more 50-seaters. 403SW and 405SW were supposed to be taken offline and handed back since their leases had finally expired, but United wanted to keep them. SkyWest has extended the leases on them. Got any more myths I can bust?

I was told that Bombardier sold them both back to OO for 1.5 Million a piece, which is less than one of the engines is worth. 405SW will be flown until it hits 40,000 cycles, which isn't far off. Bombardier is then purchasing it back from us to tear down rivet by rivet. 403SW is going to be parted out by us, but I could have which is which backwards. Just what I was told.....

 

[longhorn12]

Russian Roulette

I am a regional captain who is posting under his father's account because my password never reached me after paying my fee. At my airline the mantra "Delta has reset our rates" has reached a point of recklessness. Reserve pilots are being continually pushed to exhaustion and corners are being cut where possible as a result. Mark my words, an aircraft with "Delta Air Lines" written on the side and on which passengers bought a ticket on "Delta Air Lines", will experience hull loss. Eventually a lawyer will be able to attach liability to a mainline partner. Only then will we see responsible aviation practices. Keep sitting atop your house of cards General Lee, the fact of the matter is your company's reputation and your career rests on the shoulders of some lowly regional exhausted reserve who flys your passengers. Sleep well tonight.

 

[flyingfool]

403SW and 405SW were supposed to be taken offline and handed back since their leases had finally expired, but United wanted to keep them. SkyWest has extended the leases on them.

That better not be true. 403 should be in front of HDQ in SGU with a Koi pond under it and some lights shinning up on it, maybe even a waterfall. Not trying to fly.

 

[Jar Jar]

I am a regional captain who is posting under his father's account because my password never reached me after paying my fee. At my airline the mantra "Delta has reset our rates" has reached a point of recklessness. Reserve pilots are being continually pushed to exhaustion and corners are being cut where possible as a result. Mark my words, an aircraft with "Delta Air Lines" written on the side and on which passengers bought a ticket on "Delta Air Lines", will experience hull loss. Eventually a lawyer will be able to attach liability to a mainline partner. Only then will we see responsible aviation practices. Keep sitting atop your house of cards General Lee, the fact of the matter is your company's reputation and your career rests on the shoulders of some lowly regional exhausted reserve who flys your passengers. Sleep well tonight.

+1 Great post.

Hope your 'longhorn' pop understands what you do.

 

[XPOO]

That better not be true. 403 should be in front of HDQ in SGU with a Koi pond under it and some lights shinning up on it, maybe even a waterfall. Not trying to fly.

403SW flying United Express out of SLC this morning. Sad, but true.

 

[Gr82Aviate]

403SW flying United Express out of SLC this morning. Sad, but true.

It's actually in better shape, and flies less crooked than some of the newer POS that we got from other carriers...