Worldtraveler to the spin room stat. The patient needs you badly! <_<
http://biz.yahoo.com/ap/050310/delta_outlook_5.html
http://biz.yahoo.com/ap/050310/delta_outlook_5.html
Dl Sees Large '05 Loss
- Thread starter magsau
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TheDog2004
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They're screwed.
What are you saying DAL is lying in its filing with the Securities and Exchange Commission. I think someone is being fooled and its not the SEC.
I have to say its only workng out for Delta, if there plan and was and is lose lots and lots of money.
I have to say its only workng out for Delta, if there plan and was and is lose lots and lots of money.
I agree. We need WT. Seriously, there is no doubt that DAL now has to sell the regionals. In this day and age, it makes no sense to own them when they can bid for your services. The bottom line is that oil is killing everybody. It will be an interesting DEC..magsau said:
Well, first off, if we have learned anything from US Airways and United (and TWA and Eastern, et al), its that it is hard to kill an airline. Even if BK is in the cards for DAL, Chapter 7 is probably a long ways off.
Secondly, the company says it will not be able to generate enough cash from operations for its liquidity needs. We already know DAL is reported to be considering the sale of Delta Connection Inc, presumably as a mechanism to boost cash levels when operations are a drain. DAL should certainly consider borrowing more cash, if it can, prior to a BK filing. While DAL's financial outlook is bad, that doesn't mean the only option on the table is BK. I suspect BK is mentioned in order to extract concessions (or more accurately, convince union and non-union employees alike that more cuts are needed) such that cash-outflows can be reduced...
That's my take on this... so far... To be honest, I don't follow DAL too closely... maybe I will start. This story could become more interesting.
Secondly, the company says it will not be able to generate enough cash from operations for its liquidity needs. We already know DAL is reported to be considering the sale of Delta Connection Inc, presumably as a mechanism to boost cash levels when operations are a drain. DAL should certainly consider borrowing more cash, if it can, prior to a BK filing. While DAL's financial outlook is bad, that doesn't mean the only option on the table is BK. I suspect BK is mentioned in order to extract concessions (or more accurately, convince union and non-union employees alike that more cuts are needed) such that cash-outflows can be reduced...
That's my take on this... so far... To be honest, I don't follow DAL too closely... maybe I will start. This story could become more interesting.
You must have assets to go into C11 successfully. Delta has it all pledged in order to stay out. However oil has killed them. I would not be surprised by the sale of comair and asa but I still think C7 and/or major shrinkage is on the way. They have way too much debt. UAL went in in better shape than DAL will go in. But then again who is to say who will survive.
CapnCockroach
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Winglet said:
I sure as heck hope so. They need to go to the airline junk heap (except for Eagle).
U
UAL_TECH
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Maybe the pilots can give another Billion in concessions to keep out of BK.
Sure worked last time. :down:
B) UT
Sure worked last time. :down:
B) UT
TheDog2004
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boeing787 said:
No, they didn't. Why do you think UAL hasn't emerged from Ch 11 yet? They are just like US Airways - a zombie airline.
This industry is simply survival of the fittest. Luckily, oil is falling today(1.62) at 2:10pm. There is no doubt that DAL will sell the Regional carriers. All majors are on life support. No one has any money to spend. How much can they get for the regionals? Industry anyalysts say upwards of 1Billion. Probably will plug the holes for awhile. DAL's announcement was not a big surprise to those who follow the airline. DAL predicted negative revenue for the first part of the year. Oil has made it worse for DAL as well as all the majors.TheDog2004 said:
boeing787 said:
That would essentially have described US Airways prior to its two BK's. And yet it has managed to avoid Chapter 7, for now anyways. I am not suggesting that following in US Airways path is a good thing... rather just stating that even a DAL BK is not a hopeless cause. DAL has a very valuable business at the world's busiest airport. Its not all doom and gloom. If nothing else, DAL seems, to me anyway, to have a long-term future based on its ATL hub and significant trans-atlantic ops.
