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Why DAL's proposed ratio is inequitable

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Why DAL's proposed ratio is inequitable

Old 05-21-2008, 05:25 AM
  #381  
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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.
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Old 05-21-2008, 05:34 AM
  #382  
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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.
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Old 05-21-2008, 06:00 AM
  #383  
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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.
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Old 05-21-2008, 06:05 AM
  #384  
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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.
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Old 05-21-2008, 06:31 AM
  #385  
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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.
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Old 05-21-2008, 06:52 AM
  #386  
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Now it begins...
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Old 05-21-2008, 07:22 AM
  #387  
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Carl, I'm interested to see your spin on the displacments. Is that DALPA's fault, too?
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Old 05-21-2008, 07:43 AM
  #388  
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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)?
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Old 05-21-2008, 07:45 AM
  #389  
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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?
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Old 05-21-2008, 07:56 AM
  #390  
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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.
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