April Adjustment Entitlement (AE)
04-03-2020, 03:05 PM
#51
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Joined APC: Aug 2014
Posts: 187
Originally Posted by notEnuf
If you divide our share holders equity by the number of outstanding common shares from the 10K, each share is worth roughly $24. Delta would have to trade at a level significantly below that to extract value by dismantling. Our large share holders, Berkshire, Vanguard, PRIMEcap, Blackrock, and all the other mutual funds holding a significant amount would have to either sell or be in on it. I don’t see this as likely.
04-03-2020, 04:05 PM
#53
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Joined APC: Aug 2014
Posts: 187
True but that is 20%. Most of any airline he owns.
plus, you wouldn’t want to sell all of them at once or you would tank the price.
just an interesting observation.
I’m sure he is just reducing his exposure because he sees greater opportunity elsewhere.
plus, you wouldn’t want to sell all of them at once or you would tank the price.
just an interesting observation.
I’m sure he is just reducing his exposure because he sees greater opportunity elsewhere.
04-03-2020, 04:19 PM
#54
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Joined APC: Mar 2015
Position: stake holder ir.delta.com
Posts: 10,031
I was surprised he bought as much as he did, he said 10% of any one company is his rule. This gets him back to that. I see other companies that are more attractive takeover targets right now but with the economy as it is it’s more risky now than ever.
04-03-2020, 06:59 PM
#55
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Joined APC: Apr 2007
Posts: 4,458
Originally Posted by notEnuf
I was surprised he bought as much as he did, he said 10% of any one company is his rule. This gets him back to that. I see other companies that are more attractive takeover targets right now but with the economy as it is it’s more risky now than ever.
Bloomberg is behind a paywall, the Barrons article is not.
https://www.bloomberg.com/news/artic...ke-by-accident
https://www.barrons.com/articles/war...ck-51552219150
04-13-2020, 05:18 PM
#57
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Joined APC: Sep 2014
Posts: 4,909
Originally Posted by weekendflyer
Word on the street- surplus bid to come
out this week
out this week
Might the surplus bid come with an accompanying option to select early retirement? This could be implemented much like bypass selection, and by my understanding not require any negotiation with ALPA. Perhaps the unpaid leave solicitation they just published today was the necessary square-filler (for non-union employee optics) before offering paid early retirements.
I am not optimistic that any early out offer will be industry-leading.
04-13-2020, 05:44 PM
#58
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Joined APC: Dec 2009
Posts: 1,226
Originally Posted by TED74
Seems odd to me that they might try to manage pilot category sizes via a surplus bid prior to establishing or even discussing an early-out plan. It would also seem odd to me that an early out option would only make financial sense at some, but not all legacy carriers. What am I missing?
Might the surplus bid come with an accompanying option to select early retirement? This could be implemented much like bypass selection, and by my understanding not require any negotiation with ALPA. Perhaps the unpaid leave solicitation they just published today was the necessary square-filler (for non-union employee optics) before offering paid early retirements.
I am not optimistic that any early out offer will be industry-leading.
Might the surplus bid come with an accompanying option to select early retirement? This could be implemented much like bypass selection, and by my understanding not require any negotiation with ALPA. Perhaps the unpaid leave solicitation they just published today was the necessary square-filler (for non-union employee optics) before offering paid early retirements.
I am not optimistic that any early out offer will be industry-leading.
JMHO of course!
04-13-2020, 05:59 PM
#59
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Joined APC: Feb 2008
Posts: 19,273
Originally Posted by contrails
This will all come down to one question: what is the new target seniority list size?
It was a 15,000 pilot airline a few months ago.
It isn't now and won't be in the next two years. The virus could end today, the damage is already done.
I wouldn't be surprised if the new goal is to have 10,000 pilots. Maybe 12,000. Who knows, maybe 9,000.
Whatever the new projected categories for next spring add up to, plus a percentage for non-active status, is what will drive this AE and determine how badly the overstaffing situation is.
If the new goal was 10,000 pilots for instance, they'd be stupid to furlough below around 11,500 because of the upcoming attrition off the top.
It was a 15,000 pilot airline a few months ago.
It isn't now and won't be in the next two years. The virus could end today, the damage is already done.
I wouldn't be surprised if the new goal is to have 10,000 pilots. Maybe 12,000. Who knows, maybe 9,000.
Whatever the new projected categories for next spring add up to, plus a percentage for non-active status, is what will drive this AE and determine how badly the overstaffing situation is.
If the new goal was 10,000 pilots for instance, they'd be stupid to furlough below around 11,500 because of the upcoming attrition off the top.
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