dc3fanatic
Senior
- Mar 17, 2005
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Aww, go fly some new aircraft you can't actually buy.
Delta Liquidation
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NewHampshire Black Bears
Veteran
- Aug 20, 2002
- 10,154
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+++++++++++++++++++++++++++++++++++++++++++++++++++++++++
"POS".... S C A B !!!!
NH/BB's
ohcaptainron
Member
- Sep 12, 2002
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Analysts: Delta faces liquidation
Bankrupt airline considered the weakest of legacy carriers and the most at risk for takeover.
December 6, 2005: 4:20 PM EST
Analysts say Delta is the weakest of the legacy carriers and may face liquidation.
WASHINGTON (Reuters) - Delta Air Lines Inc. is the weakest among traditional U.S. airlines and faces risk of liquidation if things do not go well in bankruptcy court, analysts said Tuesday.
"There is a tangible risk that Delta could be up for liquidation," said CreditSights analyst Roger King at the Reuters Aerospace and Defense Summit.
Fitch Ratings analyst Bill Warlick added that Delta had mortgaged everything it had left.
"That's the one to watch moving into 2006 if things do not proceed well in the bankruptcy process," he said. "It's certainly conceivable that a carrier like Delta could face a liquidity squeeze."
Delta, the No. 3 U.S. carrier, filed for Chapter 11 bankruptcy protection in September and is seeking $3 billion in cost cuts and revenue hikes it says it needs to survive.
Delta could not be reached immediately for comment.
Consolidation eyed
Analysts attending the summit held in Washington said the airline industry needed to consolidate to become profitable.
"Of all the network carriers, they [Delta] have the weakest network profile and therefore would be most at risk as a target in future M&A," Warlick said.
Unlike Northwest, Delta has nothing it can fall back on, CreditSights' King added. Delta's hubs are not attractive for European business, and it faces competition from low-cost carriers on their domestic routes, he said.
"Their balance sheet is full of a lot of secured debt," said King. "Everything is liened up, including probably the pencils."
King said that he expected Delta pilots -- who are fighting the airline's bid to void their contract in bankruptcy court -- to vote against a strike if the judge hearing the case rules against them.
"When it actually comes time to vote, people tend to vote for the job," he said.
Earlier at the summit, Duane Woerth, president of the Air Line Pilots Association, said there was a possibility that the pilots would strike if the court rejected their contract.
"There is a chance because the level of frustration is so high," he said. But he added: "It'll be (more) an act of venting than strategy."
Bankrupt airline considered the weakest of legacy carriers and the most at risk for takeover.
December 6, 2005: 4:20 PM EST
Analysts say Delta is the weakest of the legacy carriers and may face liquidation.
WASHINGTON (Reuters) - Delta Air Lines Inc. is the weakest among traditional U.S. airlines and faces risk of liquidation if things do not go well in bankruptcy court, analysts said Tuesday.
"There is a tangible risk that Delta could be up for liquidation," said CreditSights analyst Roger King at the Reuters Aerospace and Defense Summit.
Fitch Ratings analyst Bill Warlick added that Delta had mortgaged everything it had left.
"That's the one to watch moving into 2006 if things do not proceed well in the bankruptcy process," he said. "It's certainly conceivable that a carrier like Delta could face a liquidity squeeze."
Delta, the No. 3 U.S. carrier, filed for Chapter 11 bankruptcy protection in September and is seeking $3 billion in cost cuts and revenue hikes it says it needs to survive.
Delta could not be reached immediately for comment.
Consolidation eyed
Analysts attending the summit held in Washington said the airline industry needed to consolidate to become profitable.
"Of all the network carriers, they [Delta] have the weakest network profile and therefore would be most at risk as a target in future M&A," Warlick said.
Unlike Northwest, Delta has nothing it can fall back on, CreditSights' King added. Delta's hubs are not attractive for European business, and it faces competition from low-cost carriers on their domestic routes, he said.
"Their balance sheet is full of a lot of secured debt," said King. "Everything is liened up, including probably the pencils."
King said that he expected Delta pilots -- who are fighting the airline's bid to void their contract in bankruptcy court -- to vote against a strike if the judge hearing the case rules against them.
"When it actually comes time to vote, people tend to vote for the job," he said.
Earlier at the summit, Duane Woerth, president of the Air Line Pilots Association, said there was a possibility that the pilots would strike if the court rejected their contract.
"There is a chance because the level of frustration is so high," he said. But he added: "It'll be (more) an act of venting than strategy."
How much do you bet that WT will be away on a trip until all this negative press is directed back at UAL? But I'll wait anxiously for his return to enlighten us on how this is actually a strategic move on Delta's part. (or he'll pull a Dubya and attack the writer).
I, personally, think that the pilots will approve the TA and it will be business as usual. I agree with the writer, it's difficult to vote yourself out of a job.
I, personally, think that the pilots will approve the TA and it will be business as usual. I agree with the writer, it's difficult to vote yourself out of a job.
UnitedChicago
Veteran
- Aug 27, 2002
- 756
- 0
I have to agree with you. Especially because so many have done the exact same thing to United.
Now's not the time to get cocky just because UA is almost past CH11.
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #27
Fly,
remind me to take you out for dinner next time I'm in *%B. We've really become best of friends since we met on this board. You're husband won't mind, will he?
Yes the pilots will come to term and DL will say as best as they can that they do not intend to terminate the pension plans at this point assuming laws are changed. As much as our friend Dubya hates it, he will have to sign pension reform because the choice is not whether companies will fully fund their pensions but whether they will keep them at all. If Washington shows that they will not work w/ companies (not just airlines) in working through their pension difficulties, then pensions will not just be frozen in record numbers but they will be terminated - and that will create a war cry from American workers from which the Republican party will never recover.
DL and DALPA are playing high stakes poker but they both know what they have to do to make each other survive. And even though Judge Prudence is one of the stranger breeds to occupy a federal bench, I think she is right on forcing the parties to come to terms.
Let's face it, people, airlines consolidate when they choose to... and no current legacy airline is either on the verge of collapse or success. They're all stuck in business purgatory from which they hope one day to emerge. The good news for them is that some of the LCCs are feeling a little nervous about their eternal prospects and aren't issuing calls of damnation against the legacies quite as often as they once did.
remind me to take you out for dinner next time I'm in *%B. We've really become best of friends since we met on this board. You're husband won't mind, will he?
Yes the pilots will come to term and DL will say as best as they can that they do not intend to terminate the pension plans at this point assuming laws are changed. As much as our friend Dubya hates it, he will have to sign pension reform because the choice is not whether companies will fully fund their pensions but whether they will keep them at all. If Washington shows that they will not work w/ companies (not just airlines) in working through their pension difficulties, then pensions will not just be frozen in record numbers but they will be terminated - and that will create a war cry from American workers from which the Republican party will never recover.
DL and DALPA are playing high stakes poker but they both know what they have to do to make each other survive. And even though Judge Prudence is one of the stranger breeds to occupy a federal bench, I think she is right on forcing the parties to come to terms.
Let's face it, people, airlines consolidate when they choose to... and no current legacy airline is either on the verge of collapse or success. They're all stuck in business purgatory from which they hope one day to emerge. The good news for them is that some of the LCCs are feeling a little nervous about their eternal prospects and aren't issuing calls of damnation against the legacies quite as often as they once did.
NewHampshire Black Bears
Veteran
- Aug 20, 2002
- 10,154
- 681
WT,
AA and CO are HARDLY in the same boat as DL.
Or hav'nt you noticed lately ??
NH/BB's
AA and CO are HARDLY in the same boat as DL.
Or hav'nt you noticed lately ??
NH/BB's
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #29
have you not noticed, snowy bear, that this industry is pretty cyclical. Few airlines that were up a few years ago are still "UP." AA and WN come the closest to being consistently up but AA has had its fair share of woes - remember May 2003? And CO is doing fine now but it had decades of woe. And as we all know, WN's party isn't going to be quite as fun in the generations to come.
