Usair Hanging On To Her Assets

[deltawatch]

Delta, Continental eye asset sales to boost cash
Fri May 13, 2005 04:23 PM ET
(Updates share prices)
By Christian Plumb

NEW YORK, May 13 (Reuters) - Delta Air Lines Inc. (DAL.N: Quote, Profile, Research) and Continental Airlines Inc. (CAL.N: Quote, Profile, Research) may sell stakes in their regional units to bolster cash depleted by high fuel costs and tough competition, their finance chiefs said on Friday.

STORY

 

[luv2fly]

Delta, Continental eye asset sales to boost cash
Fri May 13, 2005 04:23 PM ET
(Updates share prices)
By Christian Plumb

NEW YORK, May 13 (Reuters) - Delta Air Lines Inc. (DAL.N: Quote, Profile, Research) and Continental Airlines Inc. (CAL.N: Quote, Profile, Research) may sell stakes in their regional units to bolster cash depleted by high fuel costs and tough competition, their finance chiefs said on Friday.

STORY

[post="269364"][/post]​

Where does the article reference U holding on to their assets?

 

[luv2fly]

On another note:
story

"Most observers agree that US Airways would have to shrink further to bring costs more in line with America West's. Moreover, airline mergers have typically resulted in higher costs for the acquiring company."

 

[BoeingBoy]

Where does the article reference U holding on to their assets?

[post="269371"][/post]​

It doesn't - too hard to type that when you're laughing so hard....

Jim

 

[deltawatch]

Delta has been counting on U going out of business. Delta is starting to realize that U/HP will be around for a long time....new money coming. You are now starting to see Deltas plan B, probably good news for U. U has hung on to the shuttle, slots in DCA, LGA, BOS, PHL still serving most all her markets. Maybe markets would be better wording than assets .....

 

[BoeingBoy]

U has hung on to the shuttle,

[post="269378"][/post]​

Ditto DL

slots in DCA, LGA,

[post="269378"][/post]​

Ditto DL - oh wait, we've agreed to sell 134 of those

BOS, PHL

[post="269378"][/post]​

These aren't slot controlled, but ditto DL (with a new terminal in BOS)

still serving most all her markets.

[post="269378"][/post]​

Ditto DL

Jim

 

[deltawatch]

The aircraft still says Usairways across the top, may say Air Wisconsin in small print beside the door, but it don't say Delta or American.

 

[BoeingBoy]

That's true. There's just a lot less of them that say US Airways without having that small print beside the door than there used to be.

Not ditto DL....

Jim

 

[LGA / 037]

Delta has been counting on U going out of business. Delta is starting to realize that U/HP will be around for a long time....new money coming. You are now starting to see Deltas plan B, probably good news for U. U has hung on to the shuttle, slots in DCA, LGA, BOS, PHL still serving most all her markets. Maybe markets would be better wording than assets .....

[post="269378"][/post]​

UAIR is starting to kick Deltas ass in regards to the Shuttle ! Both are getting a share of Acela's customers but UAIR is going out full 3-8 pm !

 

[WorldTraveler]

You do realize that the DL Shuttle has maintained the market share lead Pan Am started, don't you. While I don't know what DL's Shuttle loads are doing, I sorta doubt that Acela and its failures will turn either DL or US around.

 

[Atlantic]

Jo Blow taxpayer kicks in $150.00 per ticket on Acela, but who's keeping track. And that's just BOS-NYC.

 

[ClueByFour]

Jo Blow taxpayer kicks in $150.00 per ticket on Acela, but who's keeping track. And that's just BOS-NYC.

[post="269453"][/post]​

Cool. We'll immediately cut all taxpayer (as opposed to ticket funded) support for the FAA, local airport improvements, and so forth.

When the national air transportation system proceeds to grind to a halt, those Amtrak subsidies won't seem so harsh.

 

[BoeingBoy]

When the national air transportation system proceeds to grind to a halt, those Amtrak subsidies won't seem so harsh.

[post="269455"][/post]​

Clue,

I suspect passenger rail service would grind to a halt a lot faster than air service. In fiscal 2003, only $3.6 billion went to the FAA from the general fund. That's expected to be cut in half for fiscal 2006. Compare that per passenger to what passenger rail gets.

As for airports, the ones to feel the pinch would be the smaller ones - think places like Hickory, NC. A lot of these small airports with commercial service get funds from the local goverment, but then again, they generally have more private traffic than commercial.

Even PIT is operating in the black without taxpayer funds despite the US cutbacks. Some major cities have been slapped on the hand for funneling funds from the airport to the general fund - LA comes to mind.

Jim

 

[deltawatch]

For several years Deltas game plan has center around seeing that USAir goes chapter 7, liquidates. They thought their deep pockets would out last USAirs. With new investors, and U/HP becoming a coast to coast LCC, Delta will have to revel her plan B. Based on the article I think plan B may include major down sizing and asset sales.

For years Delta used RJ’s (Comair mostly) to suck away at USAir’s core-mainline markets. Maybe the tide is turning. If Delta downsizes and USAir starts getting some market share back, the economics suggest that you could see mainline growth some day at USAir rather than shrinkage, could take several years to materialize though.

 

[700UW]

Lets see US is selling slots and EMB-170s to Republic, does not look like it is holding on to its assets and giving back 46 planes to the lessors.