Any "Latest & Greatest" about Delta?
12-05-2011 | 06:33 AM
Back on TDY
Joined: Apr 2008
Posts: 12,487
Likes: 0
From: 747-400 Captain
Look folks, let me try to make this simple since we have so many people here trying desperately to "prove" their thesis. Nobody goes into bankruptcy because they have a revenue problem. NOBODY. There is no mechanism in bankruptcy court to fix a revenue problem. The ONLY reason bankruptcy court exists is to give you a certain time frame of protection FROM YOUR CREDITORS! By definition, what is a creditor? Answer, somebody that holds your DEBT obligation.
Let's take this a step further. You run a company that has zero debt but doesn't produce the revenue that your competitors do. What would a bankruptcy judge say to you upon entering court? He would say: Since you have no debt, there's nothing we can do for you. Maybe you should go to business school to learn how to produce revenue better.
I don't know how I can make this any simpler. I know this doesn't fit the template created here by alfaromeo and acl65pilot, but the facts are that AMR is in bankruptcy court. They are seeking protection from the creditors to which they have $29.6 billion in debt obligations. They are NOT seeking lessons on how to produce more revenue.
Carl
12-05-2011 | 06:43 AM
Back on TDY
Joined: Apr 2008
Posts: 12,487
Likes: 0
From: 747-400 Captain
Carl claims that AMR's lack of profitability is debt related. Carl said AMR's debt was double Delta's.
In the 3Q, AMR spent $171 million in interest expense on about $8.2 billion in debt. Delta spent $229 million in interest on about $12.5 billion in debt. American reported a net LOSS of $153 million and Delta reported a net PROFIT of $547 million, after all special items. Do the math, if a magic fairy comes along and wipes out all of American's debt and let's them keep all their airplanes, American still has a third quarter where their profit is $18 million. $18 million profit in the third quarter, you know the money quarter, summer travel, the one that is supposed to support you the whole year. $18 million if they eliminate ALL THEIR DEBT. Sure they don't have a revenue problem, it's all about debt.
In the 3Q, AMR spent $171 million in interest expense on about $8.2 billion in debt. Delta spent $229 million in interest on about $12.5 billion in debt. American reported a net LOSS of $153 million and Delta reported a net PROFIT of $547 million, after all special items. Do the math, if a magic fairy comes along and wipes out all of American's debt and let's them keep all their airplanes, American still has a third quarter where their profit is $18 million. $18 million profit in the third quarter, you know the money quarter, summer travel, the one that is supposed to support you the whole year. $18 million if they eliminate ALL THEIR DEBT. Sure they don't have a revenue problem, it's all about debt.
In the third quarter Delta increased PRASM by 11% while American increased PRASM by 5.8%, but you know that has nothing to do with profitability, it's all about debt. It is completely unrelated to profit that Delta was able to raise fares to cover the run up in fuel prices while American lagged behind once again, revenue doesn't matter, it's all about debt.
So Delta has more debt, Delta pays more in interest every quarter than American. Delta also has been leading the industry in PRASM growth while American is the laggard. Delta makes a PROFIT in the third quarter while American has another LOSS. Delta will be solidly profitable this year and next while American is in bankruptcy.
Yes, Carl, proved it, it's all about debt. Revenue doesn't matter, it's all about debt. Hey, if some guy sitting on the desk at AP says it's so, it must be true.
Since we all know your true identity too, you are not an unbiased observer. But hey, let's not look at real numbers, they are just a deflection of the truth.
So Delta has more debt, Delta pays more in interest every quarter than American. Delta also has been leading the industry in PRASM growth while American is the laggard. Delta makes a PROFIT in the third quarter while American has another LOSS. Delta will be solidly profitable this year and next while American is in bankruptcy.
Yes, Carl, proved it, it's all about debt. Revenue doesn't matter, it's all about debt. Hey, if some guy sitting on the desk at AP says it's so, it must be true.
Since we all know your true identity too, you are not an unbiased observer. But hey, let's not look at real numbers, they are just a deflection of the truth.
Still noting for the record that you've come up with NOTHING to back up your original claim that AMR is where they are because of a lack of JV's and code share.
Carl
12-05-2011 | 06:43 AM
Gets Weekends Off
Joined: Apr 2008
Posts: 3,457
Likes: 0
From: LAX ERA
Geeze,
My eyes glassed over about a dozen pages ago. Guys who don't like each other having a "chicken or the egg" discussion.
What does ANY of this have to do with us? If AA breaks apart do any of you honestly think we will take any part of them. We are paying down debt, unless it's a free dead fish on the door step I just don't see it.
So, WHATGAS?
Ferd
My eyes glassed over about a dozen pages ago. Guys who don't like each other having a "chicken or the egg" discussion.
What does ANY of this have to do with us? If AA breaks apart do any of you honestly think we will take any part of them. We are paying down debt, unless it's a free dead fish on the door step I just don't see it.
So, WHATGAS?
Ferd
12-05-2011 | 06:50 AM
Back on TDY
Joined: Apr 2008
Posts: 12,487
Likes: 0
From: 747-400 Captain
So here we have you saying backruptcy has nothing to do with fixing their revenue problems, but bankruptcy will fix the issues you listed (revenue problems). You contradict yourself in the same post.
Carl
12-05-2011 | 06:56 AM
No longer cares
Joined: Mar 2008
Posts: 12,109
Likes: 0
From: 767er Captain
I guess we better take the company's first offer since we are obviously just along for the ride
12-05-2011 | 07:18 AM
Gets Weekends Off
Joined: Feb 2007
Posts: 6,844
Likes: 0
From: 765-A
Geeze,
My eyes glassed over about a dozen pages ago. Guys who don't like each other having a "chicken or the egg" discussion.
What does ANY of this have to do with us? If AA breaks apart do any of you honestly think we will take any part of them. We are paying down debt, unless it's a free dead fish on the door step I just don't see it.
So, WHATGAS?
Ferd
My eyes glassed over about a dozen pages ago. Guys who don't like each other having a "chicken or the egg" discussion.
What does ANY of this have to do with us? If AA breaks apart do any of you honestly think we will take any part of them. We are paying down debt, unless it's a free dead fish on the door step I just don't see it.
So, WHATGAS?
Ferd
12-05-2011 | 07:19 AM
Gets Weekends Off
Joined: Dec 2007
Posts: 890
Likes: 0
From: ATL717A
I like chocolate.
12-05-2011 | 07:24 AM
No longer cares
Joined: Mar 2008
Posts: 12,109
Likes: 0
From: 767er Captain
12-05-2011 | 07:27 AM
Gets Weekends Off
Joined: Jul 2006
Posts: 1,724
Likes: 0
From: Boeing Hearing and Ergonomics Lab Rat, Night Shift
I 'flutter my wings' when I eat chocolate 
Cheers
George
Cheers
George
12-05-2011 | 07:31 AM
Gets Weekends Off
Joined: Jul 2007
Posts: 103
Likes: 0
Someone post some Underboob.........Puhlease! 
All these numbers and logical debate points are totally ruining this thread for me!
Oh, and when is the projected training/conversion list coming out? I want to know when I have to start commuting.
All these numbers and logical debate points are totally ruining this thread for me!
Oh, and when is the projected training/conversion list coming out? I want to know when I have to start commuting.
Thread
Thread Starter
Forum
Replies
Last Post
