OCT 8th DL announcement

[lowecur]

General

Never played "Battleship", but it sounds like a fun strategy game. I love "what if's", and like looking at all possibilities. I only try to look at logical possibilities. What may be logical to me, maybe off the wall to someone else.

If makes for interesting conversation, as long as everyone keeps their hat on straight.

 

[FlyBoeingJets]

Re: FlyBoeingjets

It's called give and take. Believe it or not management does understand economics and psychology. The 100 seater (provided it's the EMB 190) is by far the more economically sensible a/c vs the 50 seater. Mgt knows that DALPA wants jobs and security (contract extension), plus a fair paycheck. The 100 seater plus the contract extension, fits the bill on the give part of the equation. The take is the reduction of the existing hourly wage, plus a change in work rules.

The 3rd wholly owned would be insurance. Get 60 add'l CRJ's under a separate cover, and start staffing them with DL furloughees, and watch how quick Comair pilots & FA's come to the table.

They may do both, or they may elect to do one.

Thanks for the reply! I'm starting to see the logic of this option. It could be a good way to increase capacity and keep labor costs lower over the long run (I'm not in favor of the labor cost thing but thinking up news ways to keep costs low is a high management priority).

The proposed Mesa/ACA merger highlight the change that is occuring in the regional world.
Capital is being shifted to it monthly...Hmmm...

 

[lowecur]

Flyboeingjets

The MESA/ACA proposed deal will never fly with just MESA. They need a sugardaddy to pump in some cash. That may be possible. Institutions own over 80% of the stock, and many are in the stock at much higher than what MESA is offering. Since Institutions generally are long term investors, MESA + sugardaddy would have to anny up quite a few bucks to make it worth their while. I don't see that happening. I also don't see any other bidders entering the frey, unless Richard Branson wants to put together a consortium.

This is a distraction that Kerry Skeen at ACA didn't need. He is trying to focus on putting a viable package together for the LCC, and this just muddies the waters. Hopefully, J. Ornstein is not just a puppet of UAL mgt.

 

[lowecur]

ERJ up over 5%

But volume is light. My guess it's probably the Malaysia Airlines deal, but tomorrow is the 8th, so we'll see what kind of announcement DL has (if any).