Nawww, breast.....errr......meat all the way!

Denny

I find it amusing that with all of Delta's talk of being inclusive they have basically shut the planes doors for anyone but the 1%. Heaven forbid we go after some low class leisure and LCC passengers when we are hemorrhaging money. Wouldn't want to have our non-existent business travelers sitting next to the riff raff.

Its a truly awful business plan. The pax they are chasing will be the last to come back, and when they do they will be extremely resistant to pay the massive revenue premium they used to for a long time. They largely paid that because of a record shattering economy coupled with our superior network in the first place. Both of those things are gone for quite a while.

Competitive fare domestic will be the foundation of any recovery, however long that takes. DL needs to be nimble by retooling the product (fewer FC seats, being innovative with the ancillary revenue environment, leading the cargo demand opportunity created by pax reductions, etc) and being deliberatly, ruthlessly, and at times extremely agressive in fending off the LCC capacity barfing. Maintaining the ability to instantly flex up to recovering demand (offensively or defensively) means carrying adequate excess staffing in a medium term sustainable way. Hopefully there can be a win/win reached there. Abandoning absolutely crucial crown jewel domestic marketshare (like SEA/BOS) in an attempt to collapse to prosperity chasing a customer base that no longer exists (and won't for years, and then won't return to your collapsed network with big premiums anyway) is one of the worst strategies anywhere in the industry right now.

But that FA union though. :rolleyes: DL will ironically get its tails handed to it by fully unionized airlines if it continues on its current course.

I've been charging around on Allegiant this week, pretty full everywhere.

Couldn't find the thread so I'll just drop this here. The covenant debacle of a couple weeks ago has been resolved as our CFO said it would. Pacific assets used to secure the revolver and additional terms.

https://www.sec.gov/ix?doc=/Archives...a_8k-ixbrl.htm

Thanks dude. Was trying to find this.

Okay............for the idiots among us (me😀), what does it mean? Thx

Denny

Not much, we gave additional collateral and the covenant terms were adjusted. I just wanted to post it because it totally debunks the headline a few weeks ago that Delta was at risk of default.

Sooooo, in terms of potential bankruptcy, it possibly puts that further down the road?

Denny

Without renegotiating the covenants, creditors could declare us in default of the terms and seek immediate payment (obviously a very hardball move and not without expense and risk). This puts us back in good standing with the terms of that debt, although not without a cost. The question of bankruptcy still goes back to revenue versus expenses and whether we can continue operating while servicing debt.