Originally Posted by
Bucking Bar
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?
Take a look at the last few 10-K. Let me know what Delta's capex is vs our depreciation. I think you'll find that your hedge fund manager friend is wrong.
Delta may not be making investments where you want them to, but they are investing in the company. Our 2011 metrics are toward the top of the pax industry (RASM, Margin, costs), and that's a big turnaround from 2009/2010.