D E L T A investing in JAL

[Airlinelifer]

http://www.reuters.com/article/marketsNews...20090911?rpc=44 <_<

 

[WorldTraveler]

DL has indicated more than once that it has more than enough cash as a result of the NW merger and continues to generate cash at healthy levels. It takes less cash to run a very large airline than it does to run two medium sized airlines. DL also has access to credit and assets that could be used to raise cash.

 

[whatkindoffreshhell]

I call smokescreen.

DL is just posturing similar to UA's lifting their corporate skirt for any airline who'll give them the time of day.

Hey WT -- you sound like another poster who always spouts about unencumbered assets.

I believe WN is the only domestic carrier with such goodies.

 

[FWAAA]

I call smokescreen.

DL is just posturing similar to UA's lifting their corporate skirt for any airline who'll give them the time of day.

I think you have it backwards. This isn't DL begging for money, this is JAL begging for a cash infusion. JAL is nearly bankrupt and DL is considering investing at least a couple hundred million dollars in JAL, probably moving JAL to SkyTeam.

Hey WT -- you sound like another poster who always spouts about unencumbered assets.

I believe WN is the only domestic carrier with such goodies.

As of about three months ago, AMR had about $3.5 billion of unencumbered assets against which it could borrow.

 

[whatkindoffreshhell]

I stand by my original post. The Japanese government would not tolerate DL owning a piece of JL. This is all about posturing during open skies negotiating.

So you think AA has $3.5bil of the infamous 'unencumbered assets' eh?
Good luck with that!

 

[FWAAA]

I stand by my original post. The Japanese government would not tolerate DL owning a piece of JL. This is all about posturing during open skies negotiating.

You can stand by your conspiracy theories, but the reality is that JAL is attempting to put together a financing package of about $2.8 billion:

http://finance.yahoo.com/news/Report-Troub...ml?x=0&.v=2

JAL is likely to get a huge investment from someone, be it AF/KLM or DL or AA, along with various other investors/lenders.

So you think AA has $3.5bil of the infamous 'unencumbered assets' eh?
Good luck with that!

No, I don't just think it - AA said it in its latest 10-Q:

Exclusive of these transactions, the Company estimates that it has at least $3.7 billion in unencumbered assets and other sources of liquidity and the Company continues to evaluate the most cost-effective alternatives to raise additional capital. The Company’s possible financing sources primarily include: (i) a limited amount of additional secured aircraft debt or sale leaseback transactions involving owned aircraft; (ii) leases of or debt secured by new aircraft deliveries; (iii) debt secured by other assets; (iv) securitization of future operating receipts; (v) the sale or monetization of certain assets; (vi) unsecured debt; and (vii) issuance of equity and/or equity-like securities. Besides unencumbered aircraft, the Company’s most likely sources of liquidity include the financing of AAdvantage program miles and takeoff and landing slots and the sale or financing of certain of the Company’s business units and subsidiaries, such as AMR Eagle.

http://phx.corporate-ir.net/phoenix.zhtml?...SZudW09Nw%3d%3d

Some people post facts; others just post whatever they want.