Delta Back On The Verge Of Bk

[magsau]

Shares of Delta Air Lines (DAL.N: Quote, Profile, Research) , which have fallen more than 41 percent in the past two months, on Monday dropped 36 cents, or 7.2 percent, to $4.64, their lowest point in three months.

Credit analyst Kim Noland of GimmeCredit predicted on Monday that Delta would teeter on the brink of bankruptcy again by the end of 2005. Delta's move in December to slash fares by up to 50 percent is likely to hurt yields when the cash-strapped airline can least afford it, she added.

"Now we are worried about cash burn in the first half that could make the possibility of a bankruptcy filing more likely and sooner than we had expected," Noland said.

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World,

Let me guess.......This was all planned and part of the bigger scheme to improve the airline. Just like the Comair shutdown at Christmas, I am sure that was part of the plan also.

 

[Vikedog64]

Shares of Delta Air Lines (DAL.N: Quote, Profile, Research) , which have fallen more than 41 percent in the past two months, on Monday dropped 36 cents, or 7.2 percent, to $4.64, their lowest point in three months.

Credit analyst Kim Noland of GimmeCredit predicted on Monday that Delta would teeter on the brink of bankruptcy again by the end of 2005. Delta's move in December to slash fares by up to 50 percent is likely to hurt yields when the cash-strapped airline can least afford it, she added.

"Now we are worried about cash burn in the first half that could make the possibility of a bankruptcy filing more likely and sooner than we had expected," Noland said.

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World,

Let me guess.......This was all planned and part of the bigger scheme to improve the airline. Just like the Comair shutdown at Christmas, I am sure that was part of the plan also.

[post="242067"][/post]​

Is GimmeCredit for real????

 

[SVQLBA]

Seems GimmeCredit was set up by a bunch of experienced bond traders, so it is for real. Doesn't mean though that they have any more insight than the rest of the analyst community. I still think a big deal for Delta hangs on the impact of the fare restructuring. I think it's the right move and my hunch is it will be close to revenue neutral and not the -3 to -5% blow to revenue that analysts including this one are expecting. I can't tell if its the analyst or the report but talking about "slashing fares up to 50%" shows that one or both of them have no idea what Delta has really done.

 

[Borescope]

Welcome, We look forward to having you join the club (BK). Might as well get all the Legacy airlines in BK, then we could slash fares to the bone and drive the LLC's out. This might be the plan.

 

[firstamendment]

Welcome, We look forward to having you join the club (BK). Might as well get all the Legacy airlines in BK, then we could slash fares to the bone and drive the LLC's out. This might be the plan.

[post="242136"][/post]​

Now, Now, you have to be in the Star Alliance to file bk.

 

[expressedndepressed]

weather certainly didn't help cash flow today....mega cancellations at the world's mega hub......