Go Back   Airline Pilot Central Forums - Find your next job as a Pilot > >
Mergers and Acquisitions Facts, rumors, and conjecture
 

Welcome to Airline Pilot Forums - Connect and get the inside scoop on Airline Companies

If this is your first visit, be sure to check out the FAQ. Join our community today and start interacting with existing members. Registration is fast, simple and absolutely free.


User Tag List

Reply
 
Thread Tools Search this Thread Display Modes
Old 05-21-2008, 05:25 AM   #381  
Happy to be here
 
acl65pilot's Avatar
 
Joined APC: Jun 2006
Posts: 18,546
Default

You need to look a little deeper in to the burn rate of DAL's cash. First we are spending 100's of millions of dollars on capital improvements through out the system. That adds to our burn rate. It is not just fuel. We are making the improvements needed to become a global airline. Nuf said. It is a short term cash expenditure to reap a long term gain.
Yes, we cannot keep this up long term, but the fact is that our execs are not too worried about it.
acl65pilot is offline   Reply With Quote
Old 05-21-2008, 05:34 AM   #382  
Gets Weekends Off
 
Joined APC: Feb 2008
Position: 757/767 FO
Posts: 792
Default

Yes...and it's only a matter of time before similar expenditures would be required at NWA, with the resulting hit on their "awesome" balance sheet--DC-9s can't last forever, no matter what Superpilot92 would have you believe.

And who knows, maybe a stand-alone NWA would have been able to spend some money on 787s in another 3-4 years.
Spaceman Spliff is offline   Reply With Quote
Old 05-21-2008, 06:00 AM   #383  
Happy to be here
 
acl65pilot's Avatar
 
Joined APC: Jun 2006
Posts: 18,546
Default

Yes, you are correct. I think the numbers on infrastructure and equipment that I have seen for NWA was in the ball part of 25-40 billion. ( Aircraft and new facilities at MEM and MSP) There airframes (DC-9 and early A-320's 747-400's) are in need of replacement. Delta knows this and is still willing to go along with it. These financial whiz kids know what they are doing. I have talked to a few and each time they keep stating that their lack of fleet is a small issue compared to the revenue that this mega carrier will bring in. Basically all of that bad is out weighted by the revenue stream that we will have.
acl65pilot is offline   Reply With Quote
Old 05-21-2008, 06:05 AM   #384  
Gets Weekends Off
 
Joined APC: Feb 2008
Posts: 12,577
Default

Delta's cash burn rate was roughly the same when adjusted for size in the first quarter as NWA's according to the 10Q reports. Delta's CASM was lower then NWA's even though they pay higher employee costs. In addition Delta spent a far greater amount of money on capital improvements and new aircraft. Delta is also in the middle of a ongoing network reorganization plan that is working far better then anyone hoped. The first quarter that will show the real results of that will be the 3rd Quarter this year. Summer bookings to Europe and Africa are at record levels. The monster under the bed however is fuel. If it stays where it is then look for a huge domestic pull down by all major airlines this fall. At 130 a barrel aircraft will be parked left and right.
sailingfun is offline   Reply With Quote
Old 05-21-2008, 06:31 AM   #385  
Gets Weekends Off
 
Joined APC: Feb 2008
Posts: 12,577
Default

I was about 5 minutes early with the last post. AMR just annouced a 12 percent cutback in domestic flying for Q4 this year. Sadly a lot more cutbacks are going to follow.
sailingfun is offline   Reply With Quote
Old 05-21-2008, 06:52 AM   #386  
Gets Weekends Off
 
Joined APC: Dec 2007
Position: Delta Colors Busholio
Posts: 233
Default

Now it begins...
Rotorhead is offline   Reply With Quote
Old 05-21-2008, 07:22 AM   #387  
Gets Weekends Off
 
Joined APC: Feb 2008
Position: 757/767 FO
Posts: 792
Default

Carl, I'm interested to see your spin on the displacments. Is that DALPA's fault, too?
Spaceman Spliff is offline   Reply With Quote
Old 05-21-2008, 07:43 AM   #388  
No longer cares
 
tsquare's Avatar
 
Joined APC: Mar 2008
Position: 767er Captain
Posts: 12,112
Talking

Quote:
Originally Posted by sailingfun View Post
Delta's cash burn rate was roughly the same when adjusted for size in the first quarter as NWA's according to the 10Q reports. Delta's CASM was lower then NWA's even though they pay higher employee costs. In addition Delta spent a far greater amount of money on capital improvements and new aircraft. Delta is also in the middle of a ongoing network reorganization plan that is working far better then anyone hoped. The first quarter that will show the real results of that will be the 3rd Quarter this year. Summer bookings to Europe and Africa are at record levels. The monster under the bed however is fuel. If it stays where it is then look for a huge domestic pull down by all major airlines this fall. At 130 a barrel aircraft will be parked left and right.
Not to mention adding yet another new route to start in the fall... Kuwait City - oh boy!!! Glad I am on the -ER. How many new routes has NWA added in the last..... (insert time frame here)?
tsquare is offline   Reply With Quote
Old 05-21-2008, 07:45 AM   #389  
No longer cares
 
tsquare's Avatar
 
Joined APC: Mar 2008
Position: 767er Captain
Posts: 12,112
Default

Quote:
Originally Posted by nwa757dtw View Post
Hey Spaceman, did you vote yes or no for LOA 19?
What difference does it make how he voted?
tsquare is offline   Reply With Quote
Old 05-21-2008, 07:56 AM   #390  
No longer cares
 
tsquare's Avatar
 
Joined APC: Mar 2008
Position: 767er Captain
Posts: 12,112
Default

Quote:
Originally Posted by Carl Spackler View Post
DALPA really just wants the Pacific routes and as few NWA pilots as possible. That is the prevailing concern.
Amazing Carl. I didnt know that DALPA had so much control over this deal. Where did you get this little tidbit of wisdom?

[/quote]I think we need to look at another merger partner that doesn't hold us in such terribly low esteem.[/quote]

Carl, your little inferiority complex is wearing thin. I don't know any DAL pilots that trivialize what NWA brings to this party. It is all self induced on YOUR part. What is interesting is that when the argument suits you, it's woe is me... DAL doesn't think NWA brings anything... and on the other hand... all DAL wants is our routes and airplanes.
tsquare is offline   Reply With Quote
 
 
 

 
Reply
 



Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -8. The time now is 06:42 AM.


vBulletin® v3.9.3.5, Copyright ©2000-2019, MH Sub I, LLC dba vBulletin
User Alert System provided by Advanced User Tagging v3.3.0 (Lite) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
Website Copyright 2000 - 2017 MH Sub I, LLC dba Internet Brands

Search Engine Optimization by vBSEO 3.6.1