Delta blinked at the poker table

[Flufdriver]

In my eyes Parker had to lay a hand down on the table with "some" worth to it(8.5b)to FORCE DAL, which he did, to play the next hand. Gerry had to put a worth on the table...not to high to pad the pot and not to low asto be below Parkers bid. Delta blinked and now Parker can counter, which I expect, using Gerry's numbers that were presented. It's always easiser to play cards when you know what the other players have. Parker can now counter with a higher bid to the creditors since he knows Gerry's plan (hand). Gerry overnight can't say...Oh, we misfigured...DAL is REALLY worth 12 billion now. He has already come down from his first worth on DAL from 12 to 14 B, to 9 plus to 11 billion. You can believe DAL has NOT heard the last from Dougie. The creditors love this...watch for the counter in the furure.

 

[flyingcat]

Not all the cards are on the table. On their conference call today DL stated that they may or may not include a cash component in their offer to creditors. They has shown part of his hand but not all. No doubt he is trying to show the creditors he will play ball but I seriously doubt he will offer the 50% cash/equity mix of US' offer.

 

[luv2fly]

Gerry had to put a worth on the table...not to high to pad the pot and not to low asto be below Parkers bid. Delta blinked and now Parker can counter, which I expect, using Gerry's numbers that were presented.

You think to highly of your Parker. That information would have been revealed regardless.

Gerry overnight can't say...Oh, we misfigured...DAL is REALLY worth 12 billion now. He has already come down from his first worth on DAL from 12 to 14 B, to 9 plus to 11 billion. You can believe DAL has NOT heard the last from Dougie. The creditors love this...watch for the counter in the furure.

The counter must address the concerns pointed out in the POR. So far Doug's plan is highly speculative.
Unresolved DOJ issues. Unresolved labor issues. Extending DL's exposure to BK, and DL pilot contractual issues that he has not satifactorily replied to.
Just out of curiosity Fluf, what do you expect to gain out of this proposed merge? In other words, why are you so pro-merger?

 

[deltawatch]

Blinks again .....

Delta CEO sees merger if sector consolidates
Tue Dec 19, 2006 3:06pm ET

NEW YORK, Dec 19 (Reuters) - Delta Air Lines Inc.'s (DALRQ.PK: Quote, Profile , Research) Chief Executive said on Tuesday the airline would not want to be left out of a wave of consolidation in the industry, despite its outright rejection of an offer from rival US Airways Group Inc. (LCC.N: Quote, Profile , Research)

"If the process of consolidation starts, you would not want to be left out," Delta CEO Gerald Grinstein said on a conference call with analysts. Earlier on Tuesday Delta formally rejected US Airways' $8.3 billon bid and filed its own long-awaited plan to emerge from bankruptcy as a standalone carrier.

 

[longing4piedmont]

Blinks again .....

Delta CEO sees merger if sector consolidates
Tue Dec 19, 2006 3:06pm ET

NEW YORK, Dec 19 (Reuters) - Delta Air Lines Inc.'s (DALRQ.PK: Quote, Profile , Research) Chief Executive said on Tuesday the airline would not want to be left out of a wave of consolidation in the industry, despite its outright rejection of an offer from rival US Airways Group Inc. (LCC.N: Quote, Profile , Research)

"If the process of consolidation starts, you would not want to be left out," Delta CEO Gerald Grinstein said on a conference call with analysts. Earlier on Tuesday Delta formally rejected US Airways' $8.3 billon bid and filed its own long-awaited plan to emerge from bankruptcy as a standalone carrier.

Had you listened to or read the transcript you would know that quote was taken out of context. Typical for Reuters...and for some on this board

In other words, why are you so pro-merger?

Many here have been working on reserve for 25 plus years or have been furloughed and understand that their management does not know how to run and airline. Others will do what ever it takes get to sit in the left seat of a big bird. In most cases, they see this as way to improve their lot in life and enjoy the fruits of DL’s turnaround in the past 15 months.

For the most part they are good people who have gone through a lot. Others are bitter that you have a management team that has turned around an airline with out screwing every one in sight. Some just like to stir the pot and make everyone miserable.

For the most part, they know deep in their hearts that a merger, any merger, is the only way US will survive. Unfortunately, they are correct.

 

[USA320Pilot]

L4P:

L4P said: "For the most part, they know deep in their hearts that a merger, any merger, is the only way US will survive. Unfortunately, they are correct."

USA320Pilot comments: L4P, how is US Airways' 2006 financial performance compare to the rest if the industry?

Regards,

USA320Pilot

 

[longing4piedmont]

L4P:

L4P said: "For the most part, they know deep in their hearts that a merger, any merger, is the only way US will survive. Unfortunately, they are correct."

USA320Pilot comments: L4P, how is US Airways' 2006 financial performance compare to the rest if the industry?

Regards,

USA320Pilot

Enjoy it for it will not last. The performance was the result of the employees taking major cuts before the buyout by HP. You and I both know that. Especially you and the rest of the bend over babes.

Delta has a substantially lower cost structure than US even with the massive cuts you took, and they get paid more. What does that tell you? Maybe they know how to run an airline?

BTW, did you by chance get some flying time in the new bird from Brazil on the way up?

 

[aquagreen73s]

[quote

L4P said: "For the most part, they know deep in their hearts that a merger, any merger, is the only way US will survive. Unfortunately, they are correct."

USA320Pilot comments: L4P, how is US Airways' 2006 financial performance compare to the rest if the industry?

[/quote]

The more precise question with respect to the topic is how was Airways' performance as compared to DAL's?

The optimistic attitudes of the DAL employees concerning their future as a standalone company reminds me of the overly-optimistic attitudes from Eastern - it would never fail. Hmmm. DAL employees are sowing their own seeds of destruction. There is no way DAL will survive on its own. This is their one and only window of opportunity to have an airline which still bears their name and credits them with their seniority. But alas, it looks like many in Atlanta are committed to seeing history repeat itself.

 

[dariencc]

Some just like to stir the pot and make everyone miserable.

Says the non-airline guy who's "hobby" is to come on here and jerk U employees' chains. :down:



For the most part, they know deep in their hearts that a merger, any merger, is the only way US will survive. Unfortunately, they are correct.

If that is true, all knowing one, then you should be commending Parker for taking action that will enable his company to survive. By the way, if you took a vote among employees, probably 90% would vote for Northwest.

 

[N924PS]

Delta has a substantially lower cost structure than US even with the massive cuts you took, and they get paid more. What does that tell you? Maybe they know how to run an airline?

Gosh, if they're so good at running an airline, how did they wind up in bankruptcy in the first place?

 

[insp89]

Gosh, if they're so good at running an airline, how did they wind up in bankruptcy in the first place?

I was wondering the same thing..
Could it be that Delta's management is just as sleazy as Usair's ??, using the crooked bankruptcy laws to screw over employees and creditors alike ?

 

[brokenwrench]

Gosh, if they're so good at running an airline, how did they wind up in bankruptcy in the first place?

Answer: Leo Mullin, Fred Reid, and Michelle Burns.

The optimistic attitudes of the DAL employees concerning their future as a standalone company reminds me of the overly-optimistic attitudes from Eastern - it would never fail. Hmmm. DAL employees are sowing their own seeds of destruction. There is no way DAL will survive on its own.

I am not an expert but I would have to say that DL is not in the same position in BK as Eastern or even the old US.

Reasons are as follows.
Quarter Ending: September 30, 2006

AMR Yield per RPM (cents) 12.80 Operating Cost per ASM (cents)11.02

LCC Yield per RPM (cents) 12.86 Operating Cost per ASM (cents) 11.40

DAL Yield per RPM (cents) 13.35 Operating Cost per ASM (cents) 11.33

 

[BoeingBoy]

Well, it may all be relatively moot.....

According to the POR and accompanying materials, DL has 83% of outstanding dollar amount of claims in the "Unimpaired" catagory - meaning that these claimholders are presumed to be in favor of their POR.

That takes care of the "2/3 of the total dollar amount of claims voting in the affirmative" threshold.

The remaining threshold DL has to cross is the "more than 50% of the claimants voting in the affirmative". Until DL's "Omnibus" filings to reduce/reject claims are ruled on by the judge, the number of claimants will be unknown.

Jim

 

[Gilding the Lily]

Well, it may all be relatively moot.....

According to the POR and accompanying materials, DL has 83% of outstanding dollar amount of claims in the "Unimpaired" catagory - meaning that these claimholders are presumed to be in favor of their POR.

That takes care of the "2/3 of the total dollar amount of claims voting in the affirmative" threshold.

The remaining threshold DL has to cross is the "more than 50% of the claimants voting in the affirmative". Until DL's "Omnibus" filings to reduce/reject claims are ruled on by the judge, the number of claimants will be unknown.

Jim

Jim,

Acceptance is in regards to the class (see 11 U.S.C. 1126). Thus, a class accepts the plan if the plan is accepted by creditors holding at least two-thirds in amount and a majority in number of the claims of the class that accept or reject the plan.

Therefore, it is really of no consequence that 83% of the outstanding dollar amount of claims is in the unimpaired class. The unimpaired classes do not vote because they are presumed to have accepted the plan. If the impaired classes do not each get the 2/3 + majority votes, then the plan will not pass muster. Unless of course, they try 1129B)(1).

The consent (2/3 dollar amount and 50.01% in number) of all impaired classes is necessary for consensual confirmation. If you do not have that, you try for cram down.

 

[luv2fly]

Blinks again .....

Delta CEO sees merger if sector consolidates
Tue Dec 19, 2006 3:06pm ET

NEW YORK, Dec 19 (Reuters) - Delta Air Lines Inc.'s (DALRQ.PK: Quote, Profile , Research) Chief Executive said on Tuesday the airline would not want to be left out of a wave of consolidation in the industry, despite its outright rejection of an offer from rival US Airways Group Inc. (LCC.N: Quote, Profile , Research)

"If the process of consolidation starts, you would not want to be left out," Delta CEO Gerald Grinstein said on a conference call with analysts. Earlier on Tuesday Delta formally rejected US Airways' $8.3 billon bid and filed its own long-awaited plan to emerge from bankruptcy as a standalone carrier.

Yep, translation is we are open to a merger with a partner that makes sense as is most of the industry. US's proposal is riddled with holes and to date, Parker hasn't seriously answered those questions.