[QUOTE=Melit;2662354]Millennials were born 1981-1996, so they are between 22 and 37 years old.

Off topic, but accurate.

 

Melit, do you know the history of ASA? I think not.

Thats right Delta bought ASA for 1.1 billion dollars in 1999. So I guess Delta did not want to buy ASA.

Skywest was forced to buy ASA for 300 million. If Delta filed bankruptcy they would pay another 100 million which they did.

Delta needed cash for bankruptcy.

Learn your history. Check your facts. Stop posting until you do, it makes you look foolish..

701EV

 

[QUOTE=queso;2662479]Generation me is over 50 and still acting like children.

 

Oh I know the history ASA. I remember tail # 701EV was a piece of 💩

 

Its now 609SK. Still a pile....

 

If Delta needed cash they would have reduced their asking price for ComAir. What Delta needed was protection of Mecca, and the C/D gate leases in ATL which, at the time, were held be ASA. Get ASA out of the Delta umbrella and the bankruptcy court can’t touch those gates. Delta saw CVG as expendable and kept ComAir as a place for accountants to put massive losses on the books, sound familiar?

 

Do you remember how much cash was on hand at the time?

They needed the cash for the cost of filing bankruptcy. Delta did not have that amount of cash on hand.

701EV

 

No I don’t remember. However, you don’t ‘need cash’ to file bankruptcy. What you need is cash on hand to operate while going through the process. If that cash is not available the judge gets to sell your assets to create that cash and satisfy obligations to creditors. $400m is a lot of money for you and I, but not that much when it comes to operating expenses of the 3rd largest, at the time, airline in the world.

One of the largest, and easily moved assets was the lease on the C/D gates in ATL. Southwest and others had been trying to get into ATL for years. AirTran wanted to expand in ATL. The city was a creditor and could have easily gotten more $$ than ASA was paying for another airline to get their foot in the door. New or expanded airline would then be primed to make a direct run at Delta on their home turf. One way to guard against that was by protecting the C/D gates from the bankruptcy court.

By contrast very little of CVG traffic was by CVG locals. It was a connecting point (like MEM post merger) and therefore could be worked around and Delta would be just fine without it. They used ComAir as a place to hide losses, just like Inc. used ASA.

If they needed cash they would also have sold ComAir for $400m but it was frequently mentioned Delta’s ask was $1b for the exact same thing as ASA. The airlines were roughly the same size and composition, the major difference was the ATL gates.

 

I don’t think inc controls those gates any longer.

 

“Don’t think”??? Yes they do...