Any "Latest & Greatest" about Delta?
08-01-2011, 06:03 AM
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Three Airlines Look “Oversold and Ripe to Buy”: Dahlman Rose - Stocks To Watch Today - Barrons.com
AUGUST 1, 2011, 9:47 AM ET
Three Airlines Look “Oversold and Ripe to Buy”: Dahlman Rose
By Avi Salzman
Dahlman Rose analyst Helane Becker upgraded three airlines this morning after stocks in the industry fell 16% last month and 8% just last week. Becker raised Delta (DAL), United Continental (UAL) and Alaska Airlines (ALK) to Buy from Hold, and also boosted JetBlue (JBLU) to Hold from Sell, as capacity cuts in the industry should help improve profitability at the airlines going forward.
“We believe the airlines may exceed scaled-down expectations in 2H11 given the planned capacity cuts,” Becker writes.
Delta and United should also be able to shore up their balance sheets in the next couple of years.
“Delta Air Lines and United Continental stated they plan to use free cash flow over the next two years to pay down debt. Both companies target $10 billion in net debt. We believe both are likely to achieve this by 2013, although Delta has been more aggressive in marketing this as a goal. As Delta and United pay down debt, interest expense will decline improving the bottom line.”
But AMR (AMR), the parent of American Airlines, could see more troubles ahead, and Becker dropped her price target to $3.75 from $4.50.
Delta rose 2.7% in early trading. United was up 1.1%, Alaska Airlines rose 1.4% and JetBlue was up 1.5%.
AUGUST 1, 2011, 9:47 AM ET
Three Airlines Look “Oversold and Ripe to Buy”: Dahlman Rose
By Avi Salzman
Dahlman Rose analyst Helane Becker upgraded three airlines this morning after stocks in the industry fell 16% last month and 8% just last week. Becker raised Delta (DAL), United Continental (UAL) and Alaska Airlines (ALK) to Buy from Hold, and also boosted JetBlue (JBLU) to Hold from Sell, as capacity cuts in the industry should help improve profitability at the airlines going forward.
“We believe the airlines may exceed scaled-down expectations in 2H11 given the planned capacity cuts,” Becker writes.
Delta and United should also be able to shore up their balance sheets in the next couple of years.
“Delta Air Lines and United Continental stated they plan to use free cash flow over the next two years to pay down debt. Both companies target $10 billion in net debt. We believe both are likely to achieve this by 2013, although Delta has been more aggressive in marketing this as a goal. As Delta and United pay down debt, interest expense will decline improving the bottom line.”
But AMR (AMR), the parent of American Airlines, could see more troubles ahead, and Becker dropped her price target to $3.75 from $4.50.
Delta rose 2.7% in early trading. United was up 1.1%, Alaska Airlines rose 1.4% and JetBlue was up 1.5%.
08-01-2011, 06:20 AM
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Originally Posted by tsquare
watch this unfold from the Uecker seats
08-01-2011, 06:29 AM
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Originally Posted by Carl Spakler
"Uecker seats" are those the ones you sit at when your feet are on the Chief Pilot's desk?
08-01-2011, 07:06 AM
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Originally Posted by nerd2009
If it came down to AT pilots not accepting their TA, and decide to go to "self help", would ALPA spend MCF to defend a pilot group who will eventually go to SWAPA ?
ALPA didn't do that for TWA pilots i don't think they would do that for AT pilots either.
ALPA didn't do that for TWA pilots i don't think they would do that for AT pilots either.
I'm no expert, but I believe the TWA lawsuit was buyer's remorse after the MEC did exactly what they chose to do, then didn't like the result; and wanted MCF money to fight against the very thing they had already agreed to. Pretty much just like USAPA is doing now.
08-01-2011, 07:13 AM
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Originally Posted by nerd2009
If it came down to AT pilots not accepting their TA, and decide to go to "self help", would ALPA spend MCF to defend a pilot group who will eventually go to SWAPA ?
ALPA didn't do that for TWA pilots i don't think they would do that for AT pilots either.
ALPA didn't do that for TWA pilots i don't think they would do that for AT pilots either.
The TWA pilots had a member ratification of their SLI deal with AMR. Once they voted it in their was nothing for ALPA to do. TWA was also within 60 days of liquidation with cash almost depleted.
The situation at AirTran is quite different. SW has already completed the purchase. This is not a prenuptial agreement. The TWA agreement was a prenuptial. Sign it or no purchase by AMR.
08-01-2011, 07:23 AM
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Originally Posted by sailingfun
The TWA pilots had a member ratification of their SLI deal with AMR. Once they voted it in their was nothing for ALPA to do. TWA was also within 60 days of liquidation with cash almost depleted.
The situation at AirTran is quite different. SW has already completed the purchase. This is not a prenuptial agreement. The TWA agreement was a prenuptial. Sign it or no purchase by AMR.
The situation at AirTran is quite different. SW has already completed the purchase. This is not a prenuptial agreement. The TWA agreement was a prenuptial. Sign it or no purchase by AMR.
08-01-2011, 07:38 AM
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Originally Posted by tsquare
So what do you view as the ATI guys' options at this point?
08-01-2011, 07:40 AM
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Originally Posted by tsquare
So what do you view as the ATI guys' options at this point?
Each Airtran pilot will have to decide if it is put to a vote what the risks and rewards will be and make a choice.
This is much like the Delta contract. There are many who advocate a contract position with nothing less then total restoration plus inflation. Sounds great on paper but again what are the risks and what are the rewards. If you end up iced by the NMB and 5 years later we are still working under this agreement was that a wise choice?
Would it be better to try and quickly achieve a reasonable 3 or 4 year contract with good gains and be working on the next contract in 4 or 5 years or still working under this one seeking full restoration? Each pilot will have to decide when the contract surveys come out what they feel will provide the highest quality of life and be the best for their families. I know what I feel is the best course however I will support 100 percent the majority. Many however will not if things don't go there way. They will be on the various forums continuing to sling mud and name call without ever providing any positive contributions.
08-01-2011, 07:49 AM
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Originally Posted by scambo1
ALFA;
Airtran was ALPA when this merger was announced, not independant.
I do not expect ALPA to be the fairy godmother, but I do expect alpa to be more than the castrated gimp.
I do not see the point of ALPA anymore. No goals, no teeth, legal deck is stacked against it, I dont get the point of ALPA.
Airtran was ALPA when this merger was announced, not independant.
I do not expect ALPA to be the fairy godmother, but I do expect alpa to be more than the castrated gimp.
I do not see the point of ALPA anymore. No goals, no teeth, legal deck is stacked against it, I dont get the point of ALPA.
So tell me, Mr. Scambo, exactly what would YOU do? Give us the plan. You seem real quick with the criticism, so what would advise ALPA to do?
08-01-2011, 08:00 AM
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Originally Posted by sailingfun
I know nothing about Airtrans scope and fragmentation clause. I also don't know what may or may not be going on behind the scenes with SW management and what pressure they may be applying. The AirTran MEC and pilots will have to look at their options. Strong legal counsel will also be needed. It appears to me however that this is a attempt by SW management to end run the new law on SLI's passed by the government.
Each Airtran pilot will have to decide if it is put to a vote what the risks and rewards will be and make a choice.
This is much like the Delta contract. There are many who advocate a contract position with nothing less then total restoration plus inflation. Sounds great on paper but again what are the risks and what are the rewards. If you end up iced by the NMB and 5 years later we are still working under this agreement was that a wise choice?
Would it be better to try and quickly achieve a reasonable 3 or 4 year contract with good gains and be working on the next contract in 4 or 5 years or still working under this one seeking full restoration? Each pilot will have to decide when the contract surveys come out what they feel will provide the highest quality of life and be the best for their families. I know what I feel is the best course however I will support 100 percent the majority. Many however will not if things don't go there way. They will be on the various forums continuing to sling mud and name call without ever providing any positive contributions.
Each Airtran pilot will have to decide if it is put to a vote what the risks and rewards will be and make a choice.
This is much like the Delta contract. There are many who advocate a contract position with nothing less then total restoration plus inflation. Sounds great on paper but again what are the risks and what are the rewards. If you end up iced by the NMB and 5 years later we are still working under this agreement was that a wise choice?
Would it be better to try and quickly achieve a reasonable 3 or 4 year contract with good gains and be working on the next contract in 4 or 5 years or still working under this one seeking full restoration? Each pilot will have to decide when the contract surveys come out what they feel will provide the highest quality of life and be the best for their families. I know what I feel is the best course however I will support 100 percent the majority. Many however will not if things don't go there way. They will be on the various forums continuing to sling mud and name call without ever providing any positive contributions.
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