NWA/DELTA Joint Contract

[Superpilot92]

You need to look at debt vs revenue. DL had 50% more revenue in 2007 (19.2B vs 12.5B for NW). DL and NW have about the same short-term debt load. DL has a lower long-term debt load than NW. 2010 is the largest year for DL with about 1.8B due. Refied or paid down will depend on the circumstances at the time.

My comments above were based upon when DAL stated a couple weeks ago that they needed the money NWA is bringing to ensure they could meet the debt load they have coming up. here is the press release from DAL:

Industry Issues ​

[FONT=Times New Roman,Times New Roman]1. I thought Delta’s standalone plan was sound. Why do we "need" to merge now? [/FONT]

[FONT=Times New Roman,Times New Roman]Delta does have a standalone plan that will leave better positioned than most carriers in the industry. However, this plan will most likely be unable to generate the cash flow that Delta will need to repay the secured debt leftover from the post-9/11 borrowing binge, fund their fleet growth for international expansion, and still continue to fund the improvements in pay, working conditions, and retirement that we will expect into the future.This merger will allow Delta to complete their plans for international expansion much sooner than a standalone plan will. This international expansion, along with our Joint Venture with Air France/KLM will give Delta the revenue diversification and the global reach that will ensure our company becomes a dominant player in a rapidly changing industry. [/FONT]​

Bottom line again is both sides compliment one another and we both are bringing alot to the mix.​