Should Delta Spin Off Comair and ASA?

[rgd]

Sam, I think that is the single best post I have ever read on this board. It was insightful, honest, and objective. I couldn't agree with you more. Nothing like listening to a bunch of guys who have no practical business experience talk about how to run a billion dollar company. Most of them have never done anything other than fly airplanes. I would love to hear these guys tune if they owned a company that had employees.

 

[Tim47SIP]

Now this is funny!

careful what u wish for.. sell off comair and asa.. while they keep making money while mainline loses it.. next thing u know comair and asa will be buying delta.. stapling them to the bottom and the wronged mainline pilots forming a MLDC for fair and equal representation =)~

Don't hope it happens, but you have to admit, it was comical.

 

[surplus1]

Sam,

Nice post. See my similar spoof in the same thread on the "majors" board.

 

[General Lee]

Sam,

Believe it or not, but most people can see that some CEOs are doing a terrible job, and profiting in the process. Should we not question that? We should just let them continue without our questioning the results, just because they have an MBA from Harvard? These last 3 years at Delta will make a great case study at Harvard---on how employees and pilots lack trust with the leadership(management). Look at Siegel at USAirways. He has been a terrible motivator and has no real plan--except taking from the once loyal employees. I can see that, and I am just a DUMB pilot. No monday morning quarterbacking there. Can you explain some of the things over there at the GO in ATL? I guess we shouldn't try to question it. We all have a stake in this thing going well, and I personally think Dalpa wants to give some help---but I don't understand what they other side (too bad there are other sides here) wants--except 40% and really not much form the other groups. It bothers me and I question it. But all can do is talk to my union leaders, do the best job I can at work, and come home and look on this forum. (I also pay attention to my wife)


Pez,

Sometimes I do feel like I am backed into a corner, but I actually would like to help the company out and I am not above pay cuts at all. I just think that more than one group should contribute, since we all have a stake in this. Management would love for us to make peer wages, and would love for you to make peer level wages also. The reason I may have stated that analogy was to show the same feelings we are faced with daily. But, I have a feeling we will see that fact well before you will.

Bye Bye--General Lee

 

[OH_PILOT]

Who has enough money to buy Comair? If COnair spun-off on its own it will have enough money in no time to buy Delta.

 

[General Lee]

Who bought Expressjet? There was an IPO, and with a guaranteed 10 year contract attached to it---some investors may go for it.....Who knows? We got Morgan Stanley to buy $325 million worth of bonds 3 months ago....

Bye Bye--General Lee

 

[Sam Fisher]

Who bought Expressjet? There was an IPO, and with a guaranteed 10 year contract attached to it---some investors may go for it.....Who knows? We got Morgan Stanley to buy $325 million worth of bonds 3 months ago....

Bye Bye--General Lee

Apples to Oranges General.

Bond offerings are attractive to investors because there is a guaranteed yield on their investment. Investors know exactly what their return on investment will be, as well as the risk.

With an IPO, it is a totally different ball game, despite the 10 year "cost plus" deals so rampant in today's industry.

At XJT, our IPO provided for 5 years of jet feed hub exclusivity for CAL. Hardly a 10 year deal. Actually, it is a 10 year deal but since the hub exclusivity goes away in 5 years, it is for all practical purposes, a 5 year deal.

The XJT IPO was successful for one party only - CAL Inc. They generated hundreds of millions of dollars in cash for their coffers. Beyond that, the investor got screwed. Our opening price was $16/share. It is now at $12.52. It has only once gone above $16, and that was for a brief period of time. No dividends have been paid out to date.

Sam

 

[Propsync]

In a word, yes.

But too late to benefit from it. On paper they are worth much less from the 11th. I think the same at SYX, but as I said, too late now. Much more to lose as a result. It's better for MGMT to have control. That's just the way it is right now.