Is a good thing the DL meger did NOT go through

[usair_begins_with_u]

LCC would have over paid for DL by a good 3-4 billion based on today's market cap. LCC is in enough trouble as it is now, because the cost of lower quality debt is going to go through the roof as a function of the US economy's major liquidity problems. Any business model based on debt is going to come under serious margin pressure. Compound that with the sky high cost of oil, and a stalling economy and I have very little doubt LCC will make it through 2008 without another BK filing.

 

[Travelpro72]

Maybe it will be lights out at LCC that will rid the industry of over capacity. Hmmmm.

 

[sfb]

Nah, the shares US was offering as part of the buyout would have been worth $1.37 billion given today's post-merger-record-low LCC close of $15.31/share. The "sweetened" offer would have been worth $6.37 billion, while Delta's market cap as of today is $4.24 billion.

And the resulting enterprise would have been a complete and utter cluster given Tempe's performance in the last year.

 

[deltawatch]

The entire industry is down .... everybody's darling CAL was off -2.55 today.

IM no expert, but, bigger is not always best when the economy goes flat. I wonder if "mega mergers" are the answer or maybe a smaller fleet is the way to go in 2008-2009.

 

[nycbusdriver]

I have very little doubt LCC will make it through 2008 without another BK filing.

Doogie says there's $3.5 billion in the bank. At least that's what he said at the pilot town hall meeting in PHX at the end of October. That would mean a burn of (very roughly) $10 million a day to get through that pot of money in 2008. I don't even think Doogie could do that even if one includes his bar tab.

But I do think that profits will tank in 2008, and AAA will likely suffer sizable losses. But I don't think we will see a filing in 2008. Maybe 2010 or 2011.

 

[EastUS]

Doogie says there's $3.5 billion in the bank. At least that's what he said at the pilot town hall meeting in PHX at the end of October. That would mean a burn of (very roughly) $10 million a day to get through that pot of money in 2008. I don't even think Doogie could do that even if one includes his bar tab."

But I do think that profits will tank in 2008, and AAA will likely suffer sizable losses. But I don't think we will see a filing in 2008. Maybe 2010 or 2011.

" I don't even think Doogie could do that even if one includes his bar tab."


Hmmm...you know this for a fact?

Hmm...a still practicing alcoholic in the heart of active addiction, with many years of established tabs...likely bills for even a drunker lawyer in the last car/drivning incident....lawyers for multiple arrests/fines/etc...a full quarter century at least of partying hard...Lord alone knows how much trouble avoided via money likely tossed on many occassions never to be known....it could easilly add up

 

[PHL]

You guys are relentless. I find a lot of humor everytime the small jabs are made at DougWeiser's expense, but jeez. Sometimes it really goes deep.