Swan Song?

[canyonblue]

Delta Air Lines' shares jumped 25.6% Wednesday after CEO Gerald Grinstein presented a long-awaited restructuring plan to the company's board of directors, while working with creditors to avoid a bankruptcy filing.

After sliding to a low unseen in more than 25 years, Delta shares rose 56 cents to $4.15 on a combination of short-covering and optimism that the company can avoid Chapter 11. Over the last month, shares have dropped 50%, and traders have begun buying short options, betting the company will continue to fall.

While details of the restructuring plan have not been made public, the Air Line Pilots Association representing Delta's pilots appears likely to get an equity stake in the company in exchange for deeper cuts. In a message to employees last week, the union said it was "waiting for management to provide the union with a complete proposal that addresses equity issues. At that time, ALPA will be prepared to engage in constructive negotiations in the context of overall restructuring."

Analysts covering the company say Delta's master plan will emphasize operational efficiency, while eliminating short-haul routes and downsizing smaller hubs that don't drive traffic or revenue. Furthermore, Delta may seek to differentiate itself from the competition by offering a higher standard of service and nixing Song, its year-old low-cost unit, which was specifically designed to compete with JetBlue Airways and AirTran Airways.

"Details are slowly emerging with respect to Delta's new business plan," wrote Susan Donofrio, analyst at Fulcrum Global Partners, in a research note. "This involves playing to Delta's strengths by service improvements and focusing in on longer-haul and international flights. In addition, it appears that Song could be on the chopping block." (Fulcrum Global Partners does and seeks to do business covered with the companies covered in its research reports.) Delta also announced that it has begun a consent solicitation to certain debtholders, specifically the ones holding equipment trust certificates used to back airplane leases. The carrier wants debtholders to agree to remove restrictions governing the amount of debt Delta is allowed to buy, giving it more flexibility to restructure outside of the court

 

[wood pecker]

I knew I should have invested $5,000 into DAL. when it was < 4.00 but no, the "experts" said don't do it, your throwing your money away, go to Vegas. I then ask the "experts" if you are so sure that DAL will tank then why don't you short the stock. Oh no, DAL could still recover so you don't want to take that risk.

Don't ever listen to experts that are not rich, or the ones that in 64 years will be based on their current investments earning blah blah blah...

 

[climbhappy]

the critical issue is:

in my view, that the pilots won't risk losing their pensions. they'll cut a deal and the stock will hit 10.00/share in a new york minute.

 

[skykid]

Wood Pecker, based on the article posted above by canyonblue, you are correct. Take everything you have and buy. This is all the information anyone needs. Here is the passage (and all articles like this are error free), that tells me Delta stock will go through $40:

"While details of the restructuring plan have not been made public, the Air Line Pilots Association representing Delta's pilots appears likely to get an equity stake in the company in exchange for deeper cuts."

First of all, who needs details, and second of all, 'stake in the company' plans are foolproof. Or, you could sell short and have just as good of odds. No, buy my friend. Since you can obviously make buy and sell orders in real time, you have already lost 56 cents a share by waiting!

 

[wood pecker]

What the hell, I am throwing in some $. 1,000,000/ $2000. = $500. As long as DAL reaches $500/share I am going to be rich.

 

[jetblue320]

Wood Pecker, based on the article posted above by canyonblue, you are correct. Take everything you have and buy. This is all the information anyone needs. Here is the passage (and all articles like this are error free), that tells me Delta stock will go through $40:

"While details of the restructuring plan have not been made public, the Air Line Pilots Association representing Delta's pilots appears likely to get an equity stake in the company in exchange for deeper cuts."

First of all, who needs details, and second of all, 'stake in the company' plans are foolproof. Or, you could sell short and have just as good of odds. No, buy my friend. Since you can obviously make buy and sell orders in real time, you have already lost 56 cents a share by waiting!

It sure is a better deal than Google!!! They go public today at $85 a share. Yikes!!

C yaaaa

 

[On Your Six]

Keep some "innovations"

I would hope that the "new" Delta would at least incorporate some of the Song "innovations" including:

1. Great entertainment center (better than Jet Blue's in my opinion with touch screen and music)
2. Nicer leather seats
3. More competitive fare structure
4. Attractive and FRIENDLY flight attendants - long since gone at DAL

 

[wood pecker]

I knew as soon as I put $ into DAL it would go down. On paper I just lost @$26.00. Don't tell my wife I just wasted 3 months of mortgage payments.What the hell happened? 3.6 to 4.07 to 4.60 to 4.48. 4.54 is my lucky # anybody a millionare yet$