General Lee
Well-known member
- Joined
- Aug 24, 2002
- Posts
- 20,442
Baggaley said there's also
>concern that "Delta could
>follow in the path of American
>Airlines," meaning Delta's
>condition could deteriorate
>until it's forced to the brink
>of a bankruptcy filing.
"We don't think Delta's condition will decrease below the brink of bankruptcy. At the brink of bankruptcy, Delta's condition would improve."
How about S&P's comment yesterday:
S&P cut Delta's corporate credit rating two notches to "B-minus," the sixth highest junk rating, from "B-plus." The outlook for the ratings is STABLE, S&P said.
http://biz.yahoo.com/rf/040317/airlines_delta_s_p_2.html
Doesn't that mean no further downgrades are expected? Shouldn't Delta's rating have been cut to the LOWEST (6 notches lower) if we were going to the brink of BK. What are these 6 levels lower junk ratings reserved for .....?
And how about this?
Positive factors
are the company's solid market position in the U.S. domestic and trans-Atlantic markets and the work rule flexibility and productivity made possible by a mostly nonunion work force(only the pilots, among major
employee groups, are organized). Delta, like other large airlines, is seeking to reduce expenses in response to the adverse revenue outlook, targeting a 15% cut, compared with year-end 2002 levels and before changes in fuel prices, in cost per available seat mile.
http://www2.standardandpoors.com/NA...article&cid=1079470261112&b=10&s=&i=&r=1&l=EN
-------------------------------------------------------------------*****
They are targeting a 15% reduction in costs, but wants 30% plus work rule changes to Pilot costs to approach 40%
-----------------------------------------------------------------*****
Standard & Poor's believes that achieving cost parity with airlines that have restructured in or at the edge of bankruptcy will prove difficult. REASONABLE liquidity and gradually improving airline industry traffic
provide support to the rating.
Here is the company's announcement:
http://dalweb.delta.com/dnn/03-04/031704_5.htm
A short term downgrade is acceptable possibly to get a LONG TERM pilot contract reduction. That is what it seems like..? Notice there is nothing said about any positive news from the S&P announcement, only the bad part.....
Kinda interesting, eh? Why wouldn't USAToday print any of that???? Hmmmmm?
Bye Bye--General Lee
>concern that "Delta could
>follow in the path of American
>Airlines," meaning Delta's
>condition could deteriorate
>until it's forced to the brink
>of a bankruptcy filing.
"We don't think Delta's condition will decrease below the brink of bankruptcy. At the brink of bankruptcy, Delta's condition would improve."
How about S&P's comment yesterday:
S&P cut Delta's corporate credit rating two notches to "B-minus," the sixth highest junk rating, from "B-plus." The outlook for the ratings is STABLE, S&P said.
http://biz.yahoo.com/rf/040317/airlines_delta_s_p_2.html
Doesn't that mean no further downgrades are expected? Shouldn't Delta's rating have been cut to the LOWEST (6 notches lower) if we were going to the brink of BK. What are these 6 levels lower junk ratings reserved for .....?
And how about this?
Positive factors
are the company's solid market position in the U.S. domestic and trans-Atlantic markets and the work rule flexibility and productivity made possible by a mostly nonunion work force(only the pilots, among major
employee groups, are organized). Delta, like other large airlines, is seeking to reduce expenses in response to the adverse revenue outlook, targeting a 15% cut, compared with year-end 2002 levels and before changes in fuel prices, in cost per available seat mile.
http://www2.standardandpoors.com/NA...article&cid=1079470261112&b=10&s=&i=&r=1&l=EN
-------------------------------------------------------------------*****
They are targeting a 15% reduction in costs, but wants 30% plus work rule changes to Pilot costs to approach 40%
-----------------------------------------------------------------*****
Standard & Poor's believes that achieving cost parity with airlines that have restructured in or at the edge of bankruptcy will prove difficult. REASONABLE liquidity and gradually improving airline industry traffic
provide support to the rating.
Here is the company's announcement:
http://dalweb.delta.com/dnn/03-04/031704_5.htm
A short term downgrade is acceptable possibly to get a LONG TERM pilot contract reduction. That is what it seems like..? Notice there is nothing said about any positive news from the S&P announcement, only the bad part.....
Kinda interesting, eh? Why wouldn't USAToday print any of that???? Hmmmmm?
Bye Bye--General Lee
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