Originally Posted by
shiznit
DAL wants debt to be at or under 10bill by 2012...when we actually are amendable (Jan. 2013) the debt will likely be in the 7.5-8 Billion range. That will represent roughly debt service savings of roughly $900 million per year....
With a stable industry and profits in the 1.5-2.5 billion per year range, that would mean about 2.4-3.4 billion per year in available funds.
The company COULD afford most of this now, but "a contract is a contract".
A comment....the adjusted net debt target is $10 billion by December 31, 2012, which is our amendable date. That should take Delta's debt service from last year's $1.3 billion down to just above $700 million, or a savings of about $600 million over last year.
I for one sure hope they hit the target. It would make for a much more survivable airline should there be any unplanned shocks to our system.