Guys:

Once again, Delta is in the news with the all too familiar phrase "losing money." Like as in $5 million a day.

We have kicked Delta's liquidation around before, and I think that as each day goes by, it becomes clearer that Delta is DONE.

Curious to know everyone's outlook on this. I'll chime in when I have time later today.

Cheers everyone,

Scott

The bankruptcy judge heard additional arguments on Thursday, but wisely decided not to issue a ruling until Mon 28 Nov to avoid "disruptions" over the Thanksgiving holiday.
If she eventually rules for management and the pilots' union strikes, it's over after a 30 day "cooling off" which means Christmas holiday travel should be loads of fun.
M

My bet is that the pilots will come to their senses and negotiate some kind of pay cut. Many of these people remember what happened to that other Atlanta-based airline - and I'm not talking about Valujet.

Let's say for a moment that a crisis is averted between management and the pilots.

What's next? I think the sheer factor of continual losses is enough to drive the nail into the coffin.

RK, I'm anxious to hear your thoughts specifically, because all we're talking about is the next 10 days. Do you really think they'll go down.

I think 1 of the Legacy carriers WILL be the odd-man out in 1 year or so. Reasons to follow later....

Let's ask the bosses at GE and American Express - when are they going to pull the plug?

rkkwan,
Amen: sold my (inherited) GM and Delphi stock in '99.
GE? at year's end.
M

Word on AMEX and GE. Those loans get a little dicey huh?!?

Done in a year is my call, but end of the year is feasible if the pilots are stubborn.

Hartsfield is gonnna look a whole lot different if that happens...

Let me count what I think were DL's major mistakes in the last 10 years or so:

1. Give their pilots huge contracts when times are great; and didn't care to renegotiate until it's too late.

2. Because of point 1, they couldn't afford to buy and fly more 777s. Every airline in the world knows that's the most efficient plane to fly across the Atlantic or Pacific; but they still have only 8. Even Continental has 18 and is ordering two more.

3. Gave up on all Asian routes (except daily ATL-NRT) in 2001(?). When every airline in the world is trying to get more Asian traffic, DL pulled out.

4. Late getting into Latin America, another large potential market.

5. Didn't they just finish painting over the "Express" logos on DL Express when they dumped another big chunks of money into Song? Even kindergarteners should know by now that you cannot create a low-fare airline within a high-cost company.

6. Outsourced phone agents to India. The public don't care if maintenance get moved oveseas as long as the planes don't fall out of the sky. They'd even appreciate foreign FAs. But PA that knows nothing about US geography, US airports and US weather? Let alone their accent.

7. These two go a little further back, but what happened to the marketshare and customers of Western Airlines? Or what happened to the Frankfurt hub that they bought from Pan Am?

8. Concentrated too much of European traffic to ATL. That gave up marketshare from the New York market to AA and CO. Another waste of Pan Am asset.

9. Cut MQM to 50% on lower fare a few years ago, alienating tons of loyal customers it needed.

10. Fired Queen of Sky, who gave DL excellent and free publicity. Instead, they're now spending attorney fees to defend itself. [If you don't know what I'm talking about, go to queenofsky.journalspace.com to find out.]

Oh wow, I didn't realize I can name 10 things. Now it's a Top Ten list...

Interesting Associated Press story today about the situation with DL and Northwest pilots. The basic point was that both carriers' pilots unions have already given up a lot and might be done. The airlines need the cuts.

One expert said if they can't make a deal, a strike would be "murder-suicide" for the pilots and airlines.