SKYW + Comair (or ASA) union or non-union

[General Lee]

Once again General, you really are too funny!

Delta could dump every asset they have and would still be BILLIONS and BILLIONS in debt.

When do you think the next round of pay cuts will be coming your way?

Ha ha. Well, it would have been sooner had we not tried to sell you guys off with all of that debt. You have to agree that getting rid of some debt will help the overall picture. Sure, we have other debt, but we have more than $8 billion in RJ debt. The key here is that we actually have some assets to sell, and we will get some relief for these high gas prices. USAir doesn't have anything left. If they were to go Chap 7, then Delta would benefit greatly. This is turning out to be a survival match, and we still have some things to sell.

So, are you looking forward to going back to Helena? What about dealing with SkyWest's management? They seem pretty tough. It will be interesting.


Bye Bye--General Lee

 

[chperplt]

I never liked Helena to begin with.. Although, being a west coaster I could deal with a SLC base! I just bought a new wide screen DLP projection TV.. I could use some more TV time!

Of course getting rid of some debt is better than not getting rid of any debt.. Economics 101. That being said, you're up sh!ts creak right now, and all the RJs in the fleet only comprise half a paddle.

How do you figure that selling off the RJs will give you relief with the gas prices? You're still paying for all the gas either way.

 

[doh]

General,

I think there's still some fight in the dog. They can't be any tougher than old Satenbergen was.

 

[Jon Rivoli]

If what they wanted was to lock in a code share it would be far easier and cleaner to do it like Air Wisconsin/ US Air and buy it, they have $750 million CASH. I stand by my previous post.

 

[Patriot328]

The only reasons SKYW management would even look at a buyout of another carrier would be that it was a smoking deal (i.e. Brand new FLYI RJ's for $7mil each)

Not challanging the meat of your post, but the CRJs went to SKYW for a tad of $12 million a copy.

 

[~~~^~~~]

If what they wanted was to lock in a code share it would be far easier and cleaner to do it like Air Wisconsin/ US Air and buy it, they have $750 million CASH. I stand by my previous post.

(1) Delta isn't in bankruptcy yet. Skywest could not pull a Debtor in Possession blockade run on the Delta contracts.

(2) ASA's airplanes are leased. Assuming leases on used airplanes would not be a screaming deal.

 

[General Lee]

(1) Delta isn't in bankruptcy yet. Skywest could not pull a Debtor in Possession blockade run on the Delta contracts.

(2) ASA's airplanes are leased. Assuming leases on used airplanes would not be a screaming deal.

Thanks to a cash infusion, Delta will avoid it even longer, and less debt will help too. Also, I read that Delta had more than $8 billion in RJ debt. Are you sure all of ASA's airplanes are leased? Where did that debt number come from---and it was RJ debt.


Bye Bye--General Lee

 

[General Lee]

I never liked Helena to begin with.. Although, being a west coaster I could deal with a SLC base! I just bought a new wide screen DLP projection TV.. I could use some more TV time!

Of course getting rid of some debt is better than not getting rid of any debt.. Economics 101. That being said, you're up sh!ts creak right now, and all the RJs in the fleet only comprise half a paddle.

How do you figure that selling off the RJs will give you relief with the gas prices? You're still paying for all the gas either way.

I guess the other $2.3 billion a year we are now saving won't help......($1 billion alone from pilots, another $1 billion from other employees and lease restructuring, etc...) We don't know how long fuel prices will be sky high, but it is doubtful that they will remain at $60 a barrel for too long, probably settling back into the mid 40's. Then, if USAir finally tanks, DL will benefit greatly----and they have very little to sell. If we get $500 million for ASA, that could help with gas prices for a year at least. Also, fuel surcharges are starting to stick, so that may help. Our fleet consolidation, our closing of our DFW hub, our clockwork program in ATL that is creating a more efficient hub using airplanes more throughout the day, the use of Song on certain routes to beef up revenue, and using DCI better, can only help the old situation that was bad under previous management. I think we are doing better and changing direction of this large boat has started. High fuel prices are tough, but adding a surcharge like we just did can mitigate that problem somewhat. We just have to continue to do it, and NW will go along it seems. If other airlines don't, they will bleed some cash, and if USAir falls they will have no extra money to try to capitalize on the situation.


Bye Bye--General Lee

 

[surplus1]

Well General, I guess its good to see that Comair isn't the only airline that you're circling like a vulture, you've included U as well.

I hope you're right on the price of oil. My guess is we'll see $80 a barrell before we see $40 again. Hope I'm wrong.

Delta guys shouldn't complain about fuel prices though, don't most of you vote Republican? Well, you got what you wanted.

 

[~~~^~~~]

Also, I read that Delta had more than $8 billion in RJ debt. Are you sure all of ASA's airplanes are leased? Where did that debt number come from---and it was RJ debt.

Bye Bye--General Lee

General: That is impossible. Did you get that straight from Mike Pinho? While leases are considered debt obligations, 8Bn would reflect more than 400 airframes. ASA and Comair have around 270.

ASA generally owned their airplanes prior to the Delta purchase. There were exceptions, like the 9 or so ATR-PEC models ( 53_AS tail numbers ). Since the Delta purchase we have leased everything. GECAS holds most the notes.

The E120's were sold for cash which went back to mother Delta. The owned ATR's are also being turned into cash throught the out right sale of airframes and leaseback. Delta has "monetized" everything at ASA that could be sold.

 

[~~~^~~~]

Delta guys shouldn't complain about fuel prices though, don't most of you vote Republican? Well, you got what you wanted.

True, true

 

[Tim47SIP]

unreal!

Delta guys shouldn't complain about fuel prices though, don't most of you vote Republican? Well, you got what you wanted.

And this has to do with what?

Surplus, this is not the time to throw a tempertantrum!

 

[FDJ2]

[QUOTE(2) ASA's airplanes are leased. Assuming leases on used airplanes would not be a screaming deal.[/QUOTE]

Not true, not all DAL CRJs are leased. DAL owns all 58 CRJ700s plus 106 CRJ 100/200s.

 

[jayme]

Temper tantrum?

 

[FDJ2]

How and why would they fragment?

How? Just ask the ATA guys how its been done to them.

As for the why:

1. No need to take crews with a smaller fragmentation.

2. Less costly.

3. Increases the portfolio effect

4. You can better tailor the sale to the acquiring airlines plans.

5. Avoid the unionization problems associated with bringing onboard large numbers of union pilots to a non union shop.

6. You get to hire newhire pilots on probationary new hire pay versus honor the longevity of senior ASA/CMR pilots.

you get the picture.

 

[General Lee]

Not true, not all DAL CRJs are leased. DAL owns all 58 CRJ700s plus 106 CRJ 100/200s.

I knew FDJ2 would come to the rescue against the evil FINS. Mike Pinho? My a$$!

Bye Bye--General Lee