The way to tell if/when the company is looking at another equity investment that leads to a JV is to look for language similar to the 2Q2015 report related to Aeroméxico.

Generally, it's an derivative contract for shares in the foreign company which can be converted upon JV contract closing. If the two companies cannot come to some sort of agreement that leads to a JV, Delta can cash out the derivative and walk away with their cash +/- the change in value of the underlying foreign security.

A simple and safe way to conduct a foreign transaction with an unknown outcome.

 

Except they didn't do that for their initial investments: GOL, CEA, AM or VA (privately held by Singapore)

The pension fund is getting a $2B dollar injection. I'm not aware of any reporting requirements for investments made by the pension fund, are you? The investment might already be done.

https://www.sec.gov/Archives/edgar/d...285704dfwp.htm

 

Initial investments don't always lead to JV agreements. If the company is just looking at having a window into the decision making process of a foreign company a smaller investment (maybe around the 5% level... I don't know exactly) that gives a seat on the Board allows that. An example is Gol. We don't have a JV with them, hence no derivative contracts that are convertible to shares.

Pension fund investments are reported on SEC form 13F, but you won't find that info under an SEC search for DAL. The pension investment Delta made in Grupo Aeromexico (I think 4.9%) was reported on that form. Check the 2015 Aeromexico Annual report, page 19 for more info.

Discussions by Delta leadership about these sorts of investments occur at Board meetings which is why it is so important to have a seat on the Board. The voting seat was put in place as part of the DAL/NWA merger agreement.

I hadn't seen the info you posted via the above link, but a person does have to ask, "what is Delta going to use that $1 Billion for?" I mean we're drowning in cash. What need does Delta have for an extra $1 Billion?

 

It's actually $2B in two separate offerings. The pension holdings are only quarterly as far as I am aware. The shift in assets is not required to be disclosed unless they reach a threshold. AM was initially a smaller ownership level, then the tender for 49%.

This business plan is to acquire and form joint ventures. The GBH are now set so there will be no requirement for increased Delta flying, just a shift if we move out of or into a theater.

 

Care to explain how I benefit from our pilot seat on the board? I've never completely bought in to us having significant benefit from that seat. Is it much more than ceremonial?

 

Its a voting seat if the board allows the vote. Generally board work is done outside the actual meetings. I think the last board meeting conducted by RA was 7 minutes long. I highly doubt we are in the know, when it comes to major business plans. Somebody should ask if our board member was aware of a $2B security offering. That's board level stuff.

 

Why do they need this money they also have the 1 billion they were going to use to buy Avianca.

 

Our Board member doesn't show up for 7 minutes and then go home. I know that they sit on Board committees, get complete briefing papers handed out to every Board member and participate in every discussion. You might be thinking of the Annual Shareholders meeting. Board work is usually several days long and from my conversations with previous ALPA representatives serving in that position, it's a lot of work and prep.

The Board also meets more often than just quarterly. Whenever something of import requires it, they meet.

 

"Our" board member is also bound by confidentiality on a wide range of issues. So he can't tell the MEC much of anything.
Anyway, having a moakist on the board doesn't seem like much to hang our hats on.

 

For the most part in the past, he has held the Chairman and the Admin accountable for anything he didn't like. He can't do that at the moment because he has his people in those positions.

If things aren't archeived that he believes should be, then he must make sure the blame is place squarely on the shoulders of anyone else other than the Admin. This is also a subtle way of tainting the ongoing FO elections in 44. (Which he is not a member of BTW)

This is not an indictment of the Chairman or the current admin, just an observation after reading his (before and after his screen name change) posts for what has had to be at least 8 years or so.