$4 Billion Dollar Debt Goal Reached
 

In the next 24 months our execs will reach their $4 billion dollar debt goal.

Then what?

Where will the additional billions go?

We all know the answer.

To our execs through additional stock buy backs.

NOT ONE PENNY OF PROFITS SHOULD EVER HAVE BEEN RETURNED TO THE SHAREHOLDERS UNTIL THE DELTA PILOTS BANKRUPTCY CONCESSIONS WERE RESTORED

Delta has paid $10B+ in debt reduction in 6 years now saving $700M in interest a year.

$1.6B per year in debt reduction continues

$2B in shareholder returns per year continues

$1.5B+ invested in other airlines

$2B in fuel savings this year even after hedge losses

$2.5 -$3B annually into fleet, facilities and tech

$1B in pension funding (which 65% of pilots don't benefit from)

•Strong operating cash flow, combined with disciplined capital spending, produces sustainable free cash flow of $4-5 billion annually

We believe there is no more money on the table, clear and simple,” he said. Mike Donatelli.

Source: WSJ, July 22, 2015.

He didn't mention what was happening under that table.

Hey guys, I would take a look at what your health care plans are going to look like next year, before you go back to the table. ObamaCare is really going to do a number on us(9E will have same plan).

With the election shaping up to be Trump vs Biden, big changes on the horizon are coming.

Actually that 4 billion target is "net" debt. This excludes pension under funding amount.

How much of a bankruptcy claim did the pilots get? Also was the retun on it?

Net debt of $4B is about $6B in obligations minus liquid assets of about $2B. This is completely achievable within the next 2 years. This will probably trigger a corporate debt rating of investment grade or better by the major ratings agencies. (Moody's and S&P) This will allow them to finance business activities via the bond market saving them even more money and increasing access to funds. They recently collateralized 15 new 737's to retire higher interest debt. The amount of money available to them in 18 to 24 months could be enough to take activist stakes in all the airlines they have already made investments in.

That's when the last widebody flying for Delta pilots will disappear.

"You guys did such a good job for us, we don't need you anymore."

That's why enforceable production balances are so important. The follow on action would be 1E9 from the TA. As we lose our relevance they would have been able to go to the MEC chairman alone, the one person designated in the TA, and negotiate brand scope relief. China Eastern then is allowed to fly Delta livery within China and the camel has officially gotten his nose in the tent. Precedent set. Game over.

Trump may be ahead in the polls now but, by the time it gets down to 2 Republican candidates, he will lose. The party faithful will gravitate to Bush or whomever is the other mainstream Republican candidate.

You may be right about Biden............Heaven forbid!

Denny