10-k 2020
02-14-2021, 06:50 AM
#11
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Joined APC: Mar 2015
Position: stake holder ir.delta.com
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Not sure if it was ever confirmed definitively, the 4 LATAM 350s (being operated by Qatar) are not going to be Delta jets. The 10 orders are still ours with the delivery TBD. Finally found it in writing.
"In May 2020, LATAM filed for bankruptcy under Chapter 11 of the United States bankruptcy code as the result of the impact of the pandemic on its business and, as part of LATAM's reorganization, we terminated the purchase agreement for the four A350 aircraft from LATAM for a fee of $62 million, which was recorded in restructuring charges in our income statement."
"In May 2020, LATAM filed for bankruptcy under Chapter 11 of the United States bankruptcy code as the result of the impact of the pandemic on its business and, as part of LATAM's reorganization, we terminated the purchase agreement for the four A350 aircraft from LATAM for a fee of $62 million, which was recorded in restructuring charges in our income statement."
02-14-2021, 11:32 AM
#12
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Joined APC: Oct 2017
Posts: 199
Originally Posted by notEnuf
Not sure if it was ever confirmed definitively, the 4 LATAM 350s (being operated by Qatar) are not going to be Delta jets. The 10 orders are still ours with the delivery TBD. Finally found it in writing.
"In May 2020, LATAM filed for bankruptcy under Chapter 11 of the United States bankruptcy code as the result of the impact of the pandemic on its business and, as part of LATAM's reorganization, we terminated the purchase agreement for the four A350 aircraft from LATAM for a fee of $62 million, which was recorded in restructuring charges in our income statement."
"In May 2020, LATAM filed for bankruptcy under Chapter 11 of the United States bankruptcy code as the result of the impact of the pandemic on its business and, as part of LATAM's reorganization, we terminated the purchase agreement for the four A350 aircraft from LATAM for a fee of $62 million, which was recorded in restructuring charges in our income statement."
02-14-2021, 11:49 AM
#13
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Joined APC: Oct 2017
Posts: 391
Originally Posted by AlphaBeta
I remember people getting fired up when I said I had doubts about the LATAM deal and putting that much equity into a foreign carrier. Probably the worst deal they did.
02-14-2021, 12:10 PM
#14
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Joined APC: Jul 2008
Posts: 4,921
Originally Posted by AlphaBeta
I remember people getting fired up when I said I had doubts about the LATAM deal and putting that much equity into a foreign carrier. Probably the worst deal they did.
02-14-2021, 01:03 PM
#15
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Joined APC: Aug 2016
Position: Relaxed
Posts: 6,940
Originally Posted by hockeypilot44
Maybe. The refinery deal was a disaster. Some of the fuel hedge deals cost the company billions when fuel prices collapsed. The list goes on and on of billion dollar loss deals. I remember when the LATAM deal was announced. People were on here saying it was the best deal for our pilots in forever. I was just hoping for a Miami base.
02-14-2021, 01:21 PM
#16
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Joined APC: Jun 2015
Posts: 1,638
I thought the refinery was $150M and $50M in fixing up. Some years a little profit, some years a little loss.
And then the intangible effect of jet crack spread yields plummeting industry wide. Maybe not a horrible deal.
OTOH, fuel hedge losses were around $4B.
What’s the status of the LATAM JV? I couldn’t decipher the corporate-speak:
“As described in Note 5 of the Notes to the Consolidated Financial Statements, although we continue to hold the equity investments referenced below, we reduced the carrying value of our investments in Virgin Atlantic, Grupo Aeroméxico and LATAM to zero during 2020.”
”In 2019, we entered into a framework agreement with LATAM Airlines Group S.A. (“LATAM”) to form a strategic alliance. Pursuant to that agreement, we acquired a non-controlling 20% equity stake in LATAM in January 2020 for $1.9 billion and agreed to make transition payments to LATAM totaling $350 million. In May 2020, we signed a trans-American joint venture agreement with LATAM that, subject to regulatory approvals, will combine our highly complementary route networks between North and South America, with the goal of providing customers a seamless travel experience and industry-leading connectivity. As a result of the COVID-19 pandemic, LATAM initiated a voluntary proceeding to reorganize under U.S. bankruptcy laws in which it has assumed the joint venture agreement.”
“While our ownership interest remains at 20%, we no longer have significant influence with LATAM during their bankruptcy proceedings and discontinued accounting for the investment under the equity method in the June 2020 quarter and began accounting for the investment at fair value.”
I saw Virgin Australia and Westjet JVs are dead.
And then the intangible effect of jet crack spread yields plummeting industry wide. Maybe not a horrible deal.
OTOH, fuel hedge losses were around $4B.
What’s the status of the LATAM JV? I couldn’t decipher the corporate-speak:
“As described in Note 5 of the Notes to the Consolidated Financial Statements, although we continue to hold the equity investments referenced below, we reduced the carrying value of our investments in Virgin Atlantic, Grupo Aeroméxico and LATAM to zero during 2020.”
”In 2019, we entered into a framework agreement with LATAM Airlines Group S.A. (“LATAM”) to form a strategic alliance. Pursuant to that agreement, we acquired a non-controlling 20% equity stake in LATAM in January 2020 for $1.9 billion and agreed to make transition payments to LATAM totaling $350 million. In May 2020, we signed a trans-American joint venture agreement with LATAM that, subject to regulatory approvals, will combine our highly complementary route networks between North and South America, with the goal of providing customers a seamless travel experience and industry-leading connectivity. As a result of the COVID-19 pandemic, LATAM initiated a voluntary proceeding to reorganize under U.S. bankruptcy laws in which it has assumed the joint venture agreement.”
“While our ownership interest remains at 20%, we no longer have significant influence with LATAM during their bankruptcy proceedings and discontinued accounting for the investment under the equity method in the June 2020 quarter and began accounting for the investment at fair value.”
I saw Virgin Australia and Westjet JVs are dead.
Last edited by Planetrain; 02-14-2021 at 01:34 PM.
02-14-2021, 01:22 PM
#17
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Joined APC: May 2015
Position: A350 Both
Posts: 7,292
Originally Posted by hockeypilot44
Maybe. The refinery deal was a disaster. Some of the fuel hedge deals cost the company billions when fuel prices collapsed. The list goes on and on of billion dollar loss deals. I remember when the LATAM deal was announced. People were on here saying it was the best deal for our pilots in forever. I was just hoping for a Miami base.
02-14-2021, 01:33 PM
#18
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Joined APC: Apr 2020
Posts: 2,187
Originally Posted by Planetrain
I thought the refinery was $150M and $50M in fixing up. Some years a little profit, some years a little loss.
And then the intangible effect of jet crack spread yields plummeting industry wide. Maybe not a horrible deal.
OTOH, fuel hedge losses were around $4B.
What’s the status of the LATAM JV? I couldn’t decipher the corporate-speak:
“As described in Note 5 of the Notes to the Consolidated Financial Statements, although we continue to hold the equity investments referenced below, we reduced the carrying value of our investments in Virgin Atlantic, Grupo Aeroméxico and LATAM to zero during 2020.”
”In 2019, we entered into a framework agreement with LATAM Airlines Group S.A. (“LATAM”) to form a strategic alliance. Pursuant to that agreement, we acquired a non-controlling 20% equity stake in LATAM in January 2020 for $1.9 billion and agreed to make transition payments to LATAM totaling $350 million. In May 2020, we signed a trans-American joint venture agreement with LATAM that, subject to regulatory approvals, will combine our highly complementary route networks between North and South America, with the goal of providing customers a seamless travel experience and industry-leading connectivity. As a result of the COVID-19 pandemic, LATAM initiated a voluntary proceeding to reorganize under U.S. bankruptcy laws in which it has assumed the joint venture agreement.”
I saw Virgin Australia and Westjet JVs are dead.
And then the intangible effect of jet crack spread yields plummeting industry wide. Maybe not a horrible deal.
OTOH, fuel hedge losses were around $4B.
What’s the status of the LATAM JV? I couldn’t decipher the corporate-speak:
“As described in Note 5 of the Notes to the Consolidated Financial Statements, although we continue to hold the equity investments referenced below, we reduced the carrying value of our investments in Virgin Atlantic, Grupo Aeroméxico and LATAM to zero during 2020.”
”In 2019, we entered into a framework agreement with LATAM Airlines Group S.A. (“LATAM”) to form a strategic alliance. Pursuant to that agreement, we acquired a non-controlling 20% equity stake in LATAM in January 2020 for $1.9 billion and agreed to make transition payments to LATAM totaling $350 million. In May 2020, we signed a trans-American joint venture agreement with LATAM that, subject to regulatory approvals, will combine our highly complementary route networks between North and South America, with the goal of providing customers a seamless travel experience and industry-leading connectivity. As a result of the COVID-19 pandemic, LATAM initiated a voluntary proceeding to reorganize under U.S. bankruptcy laws in which it has assumed the joint venture agreement.”
I saw Virgin Australia and Westjet JVs are dead.
02-14-2021, 05:03 PM
#19
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Joined APC: Apr 2009
Position: Middle Seat
Posts: 1,202
10-k 2020
Originally Posted by Planetrain
I thought the refinery was $150M and $50M in fixing up. Some years a little profit, some years a little loss.
And then the intangible effect of jet crack spread yields plummeting industry wide. Maybe not a horrible deal.
OTOH, fuel hedge losses were around $4B.
What’s the status of the LATAM JV? I couldn’t decipher the corporate-speak:
“As described in Note 5 of the Notes to the Consolidated Financial Statements, although we continue to hold the equity investments referenced below, we reduced the carrying value of our investments in Virgin Atlantic, Grupo Aeroméxico and LATAM to zero during 2020.”
”In 2019, we entered into a framework agreement with LATAM Airlines Group S.A. (“LATAM”) to form a strategic alliance. Pursuant to that agreement, we acquired a non-controlling 20% equity stake in LATAM in January 2020 for $1.9 billion and agreed to make transition payments to LATAM totaling $350 million. In May 2020, we signed a trans-American joint venture agreement with LATAM that, subject to regulatory approvals, will combine our highly complementary route networks between North and South America, with the goal of providing customers a seamless travel experience and industry-leading connectivity. As a result of the COVID-19 pandemic, LATAM initiated a voluntary proceeding to reorganize under U.S. bankruptcy laws in which it has assumed the joint venture agreement.”
“While our ownership interest remains at 20%, we no longer have significant influence with LATAM during their bankruptcy proceedings and discontinued accounting for the investment under the equity method in the June 2020 quarter and began accounting for the investment at fair value.”
I saw Virgin Australia and Westjet JVs are dead.
And then the intangible effect of jet crack spread yields plummeting industry wide. Maybe not a horrible deal.
OTOH, fuel hedge losses were around $4B.
What’s the status of the LATAM JV? I couldn’t decipher the corporate-speak:
“As described in Note 5 of the Notes to the Consolidated Financial Statements, although we continue to hold the equity investments referenced below, we reduced the carrying value of our investments in Virgin Atlantic, Grupo Aeroméxico and LATAM to zero during 2020.”
”In 2019, we entered into a framework agreement with LATAM Airlines Group S.A. (“LATAM”) to form a strategic alliance. Pursuant to that agreement, we acquired a non-controlling 20% equity stake in LATAM in January 2020 for $1.9 billion and agreed to make transition payments to LATAM totaling $350 million. In May 2020, we signed a trans-American joint venture agreement with LATAM that, subject to regulatory approvals, will combine our highly complementary route networks between North and South America, with the goal of providing customers a seamless travel experience and industry-leading connectivity. As a result of the COVID-19 pandemic, LATAM initiated a voluntary proceeding to reorganize under U.S. bankruptcy laws in which it has assumed the joint venture agreement.”
“While our ownership interest remains at 20%, we no longer have significant influence with LATAM during their bankruptcy proceedings and discontinued accounting for the investment under the equity method in the June 2020 quarter and began accounting for the investment at fair value.”
I saw Virgin Australia and Westjet JVs are dead.
Ed and company essentially rolled up a bunch of Benjamin’s and smoked them.
Legally Delta still has a 20% ownership in LATAM, but because it’s in BK court, they have no say in what’s happening or going to happen.
Even worse, when the BK dust settles, Delta’s equity in the “restructured” LATAM will likely be between 0 and an “IOU”.
Ironic that Delta got absolutely cleaned out this year by all of these bankruptcies...it’s almost a romantic justice if it weren’t so close to home.
02-14-2021, 05:42 PM
#20
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Joined APC: Oct 2017
Posts: 199
Originally Posted by crazyjaydawg
Ed and company essentially rolled up a bunch of Benjamin’s and smoked them.
Legally Delta still has a 20% ownership in LATAM, but because it’s in BK court, they have no say in what’s happening or going to happen.
Even worse, when the BK dust settles, Delta’s equity in the “restructured” LATAM will likely be between 0 and an “IOU”.
Ironic that Delta got absolutely cleaned out this year by all of these bankruptcies...it’s almost a romantic justice if it weren’t so close to home.
Legally Delta still has a 20% ownership in LATAM, but because it’s in BK court, they have no say in what’s happening or going to happen.
Even worse, when the BK dust settles, Delta’s equity in the “restructured” LATAM will likely be between 0 and an “IOU”.
Ironic that Delta got absolutely cleaned out this year by all of these bankruptcies...it’s almost a romantic justice if it weren’t so close to home.
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