Originally Posted by
alfaromeo
Carl,
We are not slowly liquidating. We are not growing. Mainline block hours for the Summer of 2012 are 1% below 2011 plan which amounts to 110 pilots difference. The entire industry is adjusting to higher fuel prices and the fact that in order to cover fuel costs and make a profit, they have to charge higher fares. I think anyone who took Econ 101 can understand what happens to the demand curve as you have to raise prices.
Originally Posted by Websters
liq·ui·date v. liq·ui·dat·ed, liq·ui·dat·ing, liq·ui·datesv.tr.
2. To convert (assets) into cash.
We are using and retiring assets without replacing them. By definition ... liquidating those assets.
The term "liquidation" was introduced to this discussion by a hedge fund manager who used the term to describe Delta's lack of capital investment in his review of our lease information included in the Company's 10K. I resisted the use of that term until re-reading the definition and deciding it fit, despite its provocative overtones.
The point being, is our "profit" real, or does it mostly reflect our lack of investment going forward?