Question for the General

[Hpilot]

General, What do you see these numbers being next year? Don't mind our numbers we probably will have exploded by then.
http://www.airlineforecasts.com/Delta_airlines_projected_mrkt_cap_is_too_rosy.html
A friend at Skywest has an interview at Delta, but was hoping for United if they start hiring. I said I thought Delta was in a better position financially, and if offered a job for heaven's sake take it.

 

[FDJ2]

PMFJI, but if you haven't noticed, LCC's market cap is about 50% of what it was when Parker desperately attempted a hostile takeover of DAL. What would Parkers offer be worth today?

From your link:

"Delta's when-issued share price closed at $20.75 during its first day of trade on May 3, 2007. This implies that the company’s market value is $8.3 billion, not [management's] projected $10 billion,

True, but the entire industry has seen an approximate loss of 30% in market cap since December, of course LCC's has fallen significantly more. The fact that DAL's market cap projection is within 17% of it's December estimate is pretty good. I bet Parker wishes LCC's market cap was within 17% of it's December numbers.

a value management used to fend off US Airway's hostile offer, initially valued at $10.2 billion."

And todays value of that offer would have been significantly less than the $8.3B the author quotes.

 

[Hpilot]

FDJ2 I know you're 737 Plt, but don't tell me you're the General too.

 

[AA717driver]

Man! That takeover attempt really F'ed up the Delta people. FDJ, he just asked how things looked for a friend and you open up with the Doug Parker bull$h!t again.

Go get help. TC

P.S.--Hpilot: Neither carrier looks good. You cannot tell how a former Ch.11 carrier will fare for several years. It takes that long to figure out the effects of the bankruptcy on borrowing power, payment of debt (they borrowed from the mob, not Citibank...) and how the employees will operate once the afterglow of emergence wears off. Both carriers retired a lot of their more senior people--upgrades will depend on expansion. Both are ripe for consolodation. Trust me, you don't want to be at the bottom of the seniority list when that happens. But, having said that, I'd probably go with Delta. Their contract is better than UA--especially the work rules (at this time). If he lives in SLC, he could get back there. Just my opinion. Good luck.

 

[jonjuan]

I said I thought Delta was in a better position financially, and if offered a job for heaven's sake take it.

Well gee, how can he go against logic like that?