I reread the post. It was your intention to insult every USAirways employee in such a heinous manner? Wow, guess I missed the part of that post where that was necessary. Anyway, I believe I got my point across, I am through debating with you on the subject, I hope you enjoy your upcoming US travel.
US Airways confident it will acquire Delta
- Thread starter USA320Pilot
- Start date
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USA320Pilot
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- May 18, 2003
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LFP:
LFP said: "What I would fear if I were you is what DL becomes after dougie gets told no AGAIN. You have poked a sleeping giant and they are mad. I would not want to be US and be competitior of DL when this is done."
USA320Pilot comments: L4P, Delta is a good company and is working hard to emerge from bankruptcy. However, I seriously doubt US Airways is scared of Delta when it emerges.
Let's look at some facts and a recent merger case study between US Airways and United.
- US Airways emerged from bankruptcy in September 2005 and United emerged a few months later in February 2006.
- US Airways emerged with a merger partner and over $600 million in annual synergies; United emerged independently.
-- The post-emergence performance of US Airways has proven that value creation of power of airline mergers and senior management believes this can be done again with Delta.
US Airways 2006 YTD pre-tax income margin vs. the industry and United:
US Airways 4.9%
Industry Mean 2.2%
United 0.5%
Total Equity Return Sincer Emergence on 11/14/06 (date immediately before US Airways' offer to acquire Delta)
US Airways 164%
Industry Mean 74%
United - 2%
L4P, it is quit likely Delta will see the same returns as United without a merger partner before the company emerges from bankruptcy. How does Delta see US Airways type profits/margins? Merge while in bankruptcy.
If Delta does not merge it will likely be a much weaker competitor than if it merges with US Airways.
Meanwhile, US Airways is offering over $8.7 billion of value to Delta's unsecured claimhoders. The Tempe-based airline is commiting $4.0 billion is cash and 78.5 million shares, which are valued today at nearly $60 per share or about $4.7 billion. This represents about 30% premium to current unsecured bond trading levels and a 40% premium on a 30-day average.
US Airwyas has commited $7.2 billion of financing and Delta has yet ot obtain exit financing, making Delta's emergence unclear.
L4P, I fully understand company pride, but it appears clear that US Airways will remain the stronger of the two companies without a deal and I believe it might be in the Delta employees best interest to embrace the merger and not wait to see another Pan Am happen to the Delta employees, since the company is now in play.
Regards,
USA320Pilot
LFP said: "What I would fear if I were you is what DL becomes after dougie gets told no AGAIN. You have poked a sleeping giant and they are mad. I would not want to be US and be competitior of DL when this is done."
USA320Pilot comments: L4P, Delta is a good company and is working hard to emerge from bankruptcy. However, I seriously doubt US Airways is scared of Delta when it emerges.
Let's look at some facts and a recent merger case study between US Airways and United.
- US Airways emerged from bankruptcy in September 2005 and United emerged a few months later in February 2006.
- US Airways emerged with a merger partner and over $600 million in annual synergies; United emerged independently.
-- The post-emergence performance of US Airways has proven that value creation of power of airline mergers and senior management believes this can be done again with Delta.
US Airways 2006 YTD pre-tax income margin vs. the industry and United:
US Airways 4.9%
Industry Mean 2.2%
United 0.5%
Total Equity Return Sincer Emergence on 11/14/06 (date immediately before US Airways' offer to acquire Delta)
US Airways 164%
Industry Mean 74%
United - 2%
L4P, it is quit likely Delta will see the same returns as United without a merger partner before the company emerges from bankruptcy. How does Delta see US Airways type profits/margins? Merge while in bankruptcy.
If Delta does not merge it will likely be a much weaker competitor than if it merges with US Airways.
Meanwhile, US Airways is offering over $8.7 billion of value to Delta's unsecured claimhoders. The Tempe-based airline is commiting $4.0 billion is cash and 78.5 million shares, which are valued today at nearly $60 per share or about $4.7 billion. This represents about 30% premium to current unsecured bond trading levels and a 40% premium on a 30-day average.
US Airwyas has commited $7.2 billion of financing and Delta has yet ot obtain exit financing, making Delta's emergence unclear.
L4P, I fully understand company pride, but it appears clear that US Airways will remain the stronger of the two companies without a deal and I believe it might be in the Delta employees best interest to embrace the merger and not wait to see another Pan Am happen to the Delta employees, since the company is now in play.
Regards,
USA320Pilot
dariencc
Veteran
- Dec 4, 2006
- 1,284
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I knew it! This creepazoid is trying to use this forum to pick up chicks!!!!!
Yuck!
h34r:Don't you see? US FA's have shot down his slithering advances so many times, he chooses to berate and insult them continuously. Plus, I bet he thinks the DL FA's are real purdy in their red wrap dresses!I knew it! This creepazoid is trying to use this forum to pick up chicks!!!!!
Yuck!
Since I am somehow in the middle of this, Im going to respond!! Look at my user name? Could you get any more unpickupable(?) than that? Now if it was something cute like barbie, hulagirl, I could maybe, maybe think something like that but not PHXMAMA!! I will meet L4P for drinks if I am available. I may have a tight Jan sched with possibly an unplanned surgury on both my eyes. Why would you assume that he is trying to pick up anyone? A simple drink together and being able to put a face to a name is wonderful. Wouldnt it be fun to discuss in person some of what has been relayed on this board? Some of us have had conversations in the middle of the night based on our sched and no one seems to think anything about that! I still owe LCC a drink, next time trvling thru PHX. I havent forgotten LCC! Now the rest of you, out of the gutter and back to mergermadness! L4P, please dont back out on me based on these truly unclassy posters.
Really? It's not unclassy that L4P insults all US employees and calls them trailer trash, and the laughing stock of the industry? You *want* to hang out with someone who constantly insults US and its hard working employees? Sounds like lotsa fun, let me know how it goes....
Simply put Yes. Sometimes we deserve those things and sometimes we dont. I think L4P may have been subjected to some of the things that are the reason why our customer service has ranked so low for so long. I wish I was in a position to improve customer service across the board. One of the reasons I like this board and think that managment should monitor it often is to get a feel for what our customers think. I dont see the day to day things that our customers do and sometimes its nice to see things from their point of view. I dont always agree but at least they feel free to post the good, the bad and the ugly. I want US to be the best and sometimes that means realizing where we are failing in order to fix it. I think we should ALL get together for a drink and I'LL BUY!
Cosmo
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- Aug 20, 2002
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I guess it depends on the time period used (and I assume that "2006 YTD" means the first three quarters of 2006). But if one looks at just the most recent quarter (2006's third quarter), the story is quite different, as shown below:
Consolidated 3rd Quarter 2006 Pre-Tax Income Margin
United: 4.8%
US Airways: -0.6%
(Sourced from each carrier's press release.)
One could just as easily argue from these figures that United has made better progress in merely two full quarters since emerging from Chapter 11 than US Airways has made in four. Thus, your use of United's stand-alone results as a surrogate for Delta's possible future stand-alone results actually weakens, rather than supports, your theory. What do you think about that?
I know you always like to show United in the worst light possible, but you might have jumped the gun with your comparison quoted above. And while I don't know whether United or US Airways will be the stronger of the two carriers financially in the long run, you certainly have no basis to claim that US Airways has already won that title. So without taking any position (yet) regarding whether US Airways' proposed acquisition of Delta should occur, perhaps Delta's possible future as a stand-alone carrier might not be so bleak after all.
OP
USA320Pilot
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- May 18, 2003
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Cosmo:
The information I presented in my post came from US Airways' merger information and PowerPoint presentation; as well as information Doug Parker and Scott Kirby presented to the Delta creditors committee.
if you would like to review the report and presentation, click here.
Regards,
USA320pilot
The information I presented in my post came from US Airways' merger information and PowerPoint presentation; as well as information Doug Parker and Scott Kirby presented to the Delta creditors committee.
if you would like to review the report and presentation, click here.
Regards,
USA320pilot
BoeingBoy
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- Nov 9, 2003
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Certainly an unbiased source, right?
On the other hand, in updates on both companies a week ago, Lehman Brothers (who you regularly quote when they say something positive about US) says that UA has a ROE of 20% while US is "N/A". Return of book value? UA beats US there too. Debt to equity? UA wins again.
Jim
On the other hand, in updates on both companies a week ago, Lehman Brothers (who you regularly quote when they say something positive about US) says that UA has a ROE of 20% while US is "N/A". Return of book value? UA beats US there too. Debt to equity? UA wins again.
Jim
G
GSEMAN
Guest
This whole comparison thing depends on what type of math you use.
Michael B
Member
How could this possibly turn into a another Pan Am scenario where the Delta would sell itself off in pieces over a 10 year period?
Sure you beleive all the slides that roll off a computer Power Point presentation???? You really are a company lacky. Perhaps some due diligence on your part and you would not be so quick to slap the back of the guy with his hand in your pockets.
Like Cosmo posted your numbers are not valid and snap shot UAL at a comparision that is favorable to you. However, when you take REAL TIME data you see how far behind Unstable Airways really is.
