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Delta, Alaska Airlines Fight For Market Share In Seattle

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you have proven no one wrong.

You HAVE proven that you don't understand one basic airline business concept after another.

But you did it .all.by.your.self.


feel free to find the word "dump" in a financial primer on the BK process.

DL no more "dumped" debt in BK than AA did.

Both exchanged debt for equity. that is what the BK process does.

The only difference is that AMR allowed 100% of their monetary claims to be converted to equity.

To be clear, no other airline BK and few other corporate BKs have involved a 100% conversion of debt to equity.

But is also highlights that AA was not near as bad off as other carriers which means their primary motivation for entering BK was to finally cut employee costs.

AA employees received equity in exchange for what the company "dumped" - but the process was used the same by US.

Would you like to tell us what percentage of US' claims were paid?

and don't forget to note that the equity that US gave out after their first BK got wiped out in their second - so creditors from the first lost their recovery.

If you can't grasp those concepts, then you have no business participating in half of the discussions you participate in on this board.
 
You are wrong, its quite clear, lets see.
 
Hello Fellow Posters.
 
If you owed me a $100 and filed bankruptcy and only paid me $62 dollars, did you dump $38 in the debt you owed me?
 
no, you did not DUMP anything.

You converted debt to equity in BK.

Find a bankruptcy lesson that uses the word "dump" and I'll give it to you.

And it still doesn't change that AA and every other legacy network carrier has used the same process.

US did it TWICE.
 
You are a lost cause and obtuse.
 
If I am owed $100 and only get $62 I lost $38, and the company dumped that in Chapter 11, if you dont get 100% back, then they dumped it.
 
find the term "dumped" to describe the bankruptcy process.

You have no clue what you are talking about AGAIN and think you can justify your ignorance by pushing a word which is unsupported in any description of the process.

and what DL did is the EXACT SAME process as US and AA did in BK - and you have yet to tell us what the recovery rate was for each of US' BK.

You are DL mgmt.'s best contraceptive against unionization.
 
http://beta.fool.com/jonathanyates13/2013/02/20/major-air-carrier-warren-buffett-stock/24299/

As the table below shows, while US Airways, Delta Air Lines (NYSE: LCC), and United-Continental (NYSE: UAL) all had a negative profit margin over the last five years, Southwest Airlines was making money for its shareholders! It is also worthy of note that, unlike all of the legacy carriers in the United States, Southwest has never been forced to file for bankruptcy.

In filing for bankruptcy, those airlines were able to dump billions in expenses. Southwest has never done that, which means it has performed far better than the others, as the table below shows.




Expenses are debt.
 
Stop the Presses, a real airline finance person used the word "dump" in the article about bankruptcy.
 
I guess The Motley Fool doesn't understand the airline business or bankruptcy.
Someone should let them know they are all wrong.
 
again, find the word "dump" in a description of bankruptcy, not a Motley Fool article.


You can take up your frustration with the BK process and the legacy carriers' ability to restructure their debt in court just as the legacy carriers will note that WN and other low cost carriers entered the market by paying WN employees far less than the employees of legacy carriers - and requiring that WN employees wear very short pants, as if airline service couldn't be sold on its own merits so flesh had to be thrown in too.
 
WorldTraveler said:
... and requiring that WN employees wear very short pants, as if airline service couldn't be sold on its own merits so flesh had to be thrown in too.
That'll do, WT, that'll do...
 
again, you can't find the word "dump" to describe the bankruptcy process.

did you skip over this article in the Wall Street Journal, the most read business publication on the planet?

Southwest is showing its age. Once the industry's brassy upstart, the airline, which took wing 43 years ago, has begun to resemble the mainstream rivals it rebelled against in its youth: carriers that were slow-growing, complex and costly to run.

Still, the airline has failed to hit its long-standing goal of a 15% return on invested capital since 2000; it recently said it doesn't intend to grow overall until it does. Even with record profit last year, its return was 13%, up from 7% in 2012.

With its growth stalled, Southwest can't hire as many new employees at the bottom of the pay scale. From 2007 through 2012, Southwest's cost to fly a seat one mile rose 42%—more than any other major U.S. airline, according to Massachusetts Institute of Technology data that adjust for flight distance.

Its low fares, long the core pitch to customers, aren't so low anymore. Its average one-way fare was $144 in the year ended in September, a 21% increase over the same period five years earlier, when adjusted for inflation. That compared with single-digit increases at larger rivals and big price cuts at new ultra-discounters like Spirit, according to the MIT data.

The average Southwest worker earned nearly $100,000 in 2012, including pension and benefits, compared with about $89,000 at a traditional hub-and-spoke airline, according to MIT. Southwest also shares profits with employees, paying them $228 million last year, or more than 6% of their pay.

(DL employees received over 8% of their pay last year in profit sharing).

Mr. Kelleher responded: "What I tell them is…'What we're talking about here is your future. If we don't change, you won't have one.' "


http://online.wsj.com/news/articles/SB10001424052702303949704579459643375588678

you can also see the outfits that WN asked its employees to wear.

on to keep FWAAA happy everything between the word planet and the URL are quotes from the WSJ article except the ( ).
 
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