Originally Posted by tsquare (Post 1670249)

That is a fair question, but I think it boils down to the gubbamint "getting theirs". I think everybody that is paying attention now realizes that government backed student loans are what's driving the out of control costs of university education. The curves have finally crossed where those loans are no longer serviceable for degrees like women's studies and 19th century French Poetry. So like everything else now in a socialist government, it has essentially become an entitlement.... actually, for those WITH loans, it is slavery. Exactly what the current administration wants. I digress. So individuals are held to those agreements because the government gets theirs, but in the case of corporations, they can break agreements with third parties if necessary for "survival". It ain't fair, I agree, but that is what it is.... unfortunately. Actually, I don;t think student loans should be bankruptable. If Susie schoolteacher goes to Harvard to get her certificate, and only makes $20K/year, well she made a bad choice, and it ain't MY responsibility to pay for her mistake.

Originally Posted by TheManager (Post 1670133)

You bring up an interesting data point. American has 17 billion in total debt.

Delta has 9.4 billion in adjusted net debt.

American was able to put up better profit numbers while servicing a little less than twice the debt Delta has.

It is considered unwise actually to carry the amount of cash American has. (Think the beach boys my northern bros) It has a better use than sitting in a bank. If they paid down 8 billion in debt tomorrow and carried the remainder in cash they have almost identical debt and cash on hand numbers to Delta.

They have some integration costs to consider though going forward. That being said, they are able to generate incredible revenue even still.

They will be a strong number one for some time.

Originally Posted by flyallnite (Post 1670257)

That was an interesting read. He's definitely thinking outside the box. I hope DL gives him the opportunity to make a pitch, even if its a long shot.

Originally Posted by contrails (Post 1670330)

You've ignored the whole discussion you brought up, which was about what a flight is worth.

You gave an example of a diversion.

I gave an example of life value on board.

You still think a FDX pilot carrying envelopes deserves to be paid more for doing the same job that you are carrying billions in life insurance policies, not to mention the true "value" of someone's life?

Originally Posted by gloopy (Post 1670337)

While I agree in theory, I would still prefer a way for students to go the BK route over the government bailout/entitlement route. Leave the lending institutions holding the bag and after the first round they won't be making it rain 6 figures for 4 more years of high school with no ROI. As long as the govt bails them out, the cost pressures will only continue to rise because there is no consequence for making the poor decision to get idiotic 6 figure degrees in nothing in the first place.

Big Ed is going to have to take a huge haircut. More like a full body shave. Paying 6 figures for a reading list of free stuff online and in libraries knowing full well there is no job at the end of it just to extend your childhood is just dumb. Forking that much over so your kids can do it is even dumber. We're cresting the hill of the crisis and yet still learning has not occured. :rolleyes:

Originally Posted by gloopy (Post 1670340)

IOW he's saying we over ordered those comically titanic POSs and are left holding the bag on all that obsolete before its even built inventory and he's all "so what do I have to do to get you into a foreign ego boosting airplane today?"

There is no way RA is going to fall for it.

Originally Posted by flyallnite (Post 1670370)

Well I'm not going to defend his position, but it is true that we're spilling the ultra premium customers who can fly private or in a true international first class cabin. If the market is completely closed, like LHR, then operating costs are somewhat less important than the revenue generating capabilities. We're selling our business elite seats for A LOT of dough on that route, imagine what a private cabin would go for. That's all I think he's saying. And yes, buy my hugely bloated airplanes.

Originally Posted by TheManager (Post 1670376)

Buy? Worse! He wants Delta to lease them.

Not in a million years.

Originally Posted by tsquare (Post 1670380)

Maybe we could buy his inventory for a few centavos on the dollar when he goes under. lulz.....

Originally Posted by TheManager (Post 1670317)

Exactly. But what happens when we code share with those that do use the giants. 747s and 380s.

I know I know. Production balances and all. Look backs. Compliance.

When will the final verdict be in ?