Company Watch - Delta Air Lines.Dec 18, 2006 Delta Air Lines flew 8.91 billion system RPMs in November, down 1.8% from the year-ago month. Capacity fell 6.5% to 11.51 billion ASMs and load factor rose 3.7 points to 77.5%. Domestic RPMs dropped 8.4% to 6.47 billion, ASMs declined 13.8% to 8.29 billion and load factor rose 4.6 points to 78.1%. International traffic climbed 21.2% to 2.44 billion RPMs against a 19.7% rise in ASMs to 3.22 billion, lifting load factor 1 point to 75.9%. Dec 18, 2006 Delta Air Lines, as expected, intends to present a stand-alone plan that values it higher than the US Airways' offer. Citing people familiar with the matter, the Wall Street Journal on Monday reported that Delta's plan, which could be filed as early as Tuesday, values the company at USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. $10 billion to USD$12 billion. The Atlanta-based airline has repeatedly said it intends to emerge from bankruptcy as an independent carrier. Dec 15, 2006 Delta Air Lines has also said it will submit the plan to creditors by mid-December. Delta's plan, which will likely be more reliant on equity than cash, will establish a new mark that could force US Airways airways Anatomy The 'pipes'–trachea, bronchi, bronchioles–through which air passes to and from the alveoli. See Small airways. to raise its bid or encourage another airline to enter the fray fray 1 n. 1. A scuffle; a brawl. See Synonyms at brawl. 2. A heated dispute or contest. tr.v. frayed, fray·ing, frays Archaic 1. To alarm; frighten. 2. . Given Delta's resistance to US Airways' offer, US Air needs creditors to pressure Delta into opening its books in order to allow US Airways to perform due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , a condition of its offer. Delta's official creditors' committee creditors' committee A group of lenders who seek to protect their interests in connection with a borrower that experiences financial difficulties. is likely to sit tight until they have a chance to review Delta's stand-alone plan and any competing bids that may follow. The committee, a key group in the airline's future, hasn't taken a position since US Airways made its proposal on November 15. Dec 15, 2006 Delta To File USD$12 Bln Reorganization Plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. - Report. Delta Air Lines, working to repel re·pel v. re·pelled, re·pel·ling, re·pels v.tr. 1. To ward off or keep away; drive back: repel insects. 2. an USD$8.4 billion merger bid from US Airways, is expected as soon as Tuesday to file a bankruptcy reorganization plan, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a newspaper report. The Wall Street Journal said on its web site the plan values Delta at between USD$10 billion and USD$12 billion. The range, representing the airline's estimated market value after emerging from bankruptcy, is down from the USD$12 billion to USD$14 billion range the airline was calculating a few weeks ago, the paper said. Dec 15, 2006 Delta Valuation Rises Above US Airways' Bid. Bond investors are betting that Delta Air Lines is worth more than the USD$8.4 billion offer made by US Airways. Delta's bonds traded at around 67 cents on the dollar on Friday, traders said. With a claims pool estimated to be between USD$14 billion and USD$16 billion, current bond prices imply a valuation for the carrier of USD$9.4 billion to USD$10.7 billion. Even at the low end, it's higher than US Airways' cash-and-stock bid currently valued at around USD$8.4 billion and suggests investors are anticipating a sweeter offer. At least one alternative for creditors is in the works: Delta's stand-alone plan. Dec 15, 2006 US Airways in November proposed a deal to buy Delta, which is restructuring under the Chapter 11 bankruptcy protection process and still plans to emerge next year as a stand-alone airline. Dec 15, 2006 US Dept. of Justice almost certainly would review any proposed mergers and already has signaled its interest in examining the potential US Airways takeover of Delta Air Lines. DOJ (Department Of Justice) The legal arm of the U.S. government that represents the public interest of the United States. It is headed by the Attorney General. likely will pay particular attention to consolidation's effects on fares and service options for passengers. When the department officially rejected the proposed United Airlines/US Airways merger in July 2001 (it first was proposed in May 2000), it concluded that the resulting airline was not in consumers' best interests. Its opposition to that tie-up was shared by the attorneys general of 12 states, including those of heavily populated pop·u·late tr.v. pop·u·lat·ed, pop·u·lat·ing, pop·u·lates 1. To supply with inhabitants, as by colonization; people. 2. and politically influential New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and California. A state or group of states could file lawsuits against proposed mergers, which would slow the consolidation process even if the suits ultimately failed. Dec 15, 2006 Team Up Or Be Left Behind. A wave of consolidation talk across the US airline industry has left all the players in the sector with a choice of either teaming up with former bitter rivals or being left behind with inferior routes and costs, experts said on Wednesday. The recent merger talks between UAL UAL United Airlines (ICAO code) UAL Unified Accelerator Library (Brookhaven National Laboratory) UAL User Account Lockdown UAL User Access Layer UAL Universal Auxiliary Language UAL User Agent Layer , parent of United Airlines, and Continental Airlines could further jump-start the process and spur any laggards into the game. Sources familiar with the talks say the two airlines are just in preliminary discussions about a merger. Although the carriers reportedly have discussed their consolidation prospects before, they resumed discussions following US Airways' November 15 unsolicited bid for Delta Air Lines. Dec 14, 2006 Comair pilots have agreed to $11 million in annual concessions over the past year but they now are balking balking, baulking see jibbing. at calls for additional wage cuts that range from 8% to 22%. They voted 93% in favor to authorize To empower another with the legal right to perform an action. The Constitution authorizes Congress to regulate interstate commerce. authorize v. to officially empower someone to act. (See: authority) union leadership to call a strike. Lawson said the pilots continue to negotiate with management and prefer to settle the dispute at the bargaining table rather than leave their fate in the hands of a judge. Dec 13, 2006 Comair pilots voted to authorize a strike if a US Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. judge rejects their contract. The pilots, represented by the Air Line Pilots Assn., said they should not have to make additional concessions because the company is projected to earn a $50 million profit this year. Comair, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Delta Air Lines, filed for bankruptcy along with its parent in September 2005. Dec 13, 2006 Delta pilots' contract will block merger, union head says. Lee Moak disagrees with officials of Delta and US Airways who say their merger would be unaffected by existing union contracts. Moak, chairman of Delta's pilots union, says provisions setting flight-time minimums would be violated by the companies' cost-cutting plans. Dec 13, 2006 Comair pilots give union permission to call strike. Comair pilots Monday voted to allow their union to call a strike if it cannot reach a contract agreement with the company. A union spokesman said the pilots still hope to reach a deal with Comair. The two sides resumed talks Monday. Dec 12, 2006 Delta Air Lines, which has been shifting its primary focus to international services as part of its bankruptcy restructuring, yesterday launched weekly New York JFK-Accra flights aboard a 767-300ER, the 14th international route added at JFK this year by Delta, which now operates flights to 34 international destinations from the airport. It pointed out that the new flight makes it the only US major to operate a direct JFK-Africa service. "With 14 new international routes added this year alone, Delta now serves more international destinations from New York than at any time in our history, including nine transatlantic destinations not served on a nonstop HP's brand name for its fault-tolerant servers, which range in size from four CPUs to 4,000 CPUs. The NonStop line was created by Tandem Computers, which was acquired by Compaq, which later became part of HP. basis by any other major US airline," Executive VP-Network Planning and Revenue Management Glen Hauenstein said. DL plans to add nonstop flights next year from JFK to Pisa/Tuscany, Bucharest and St. Thomas. Dec 12, 2006 Judge allows Delta to end pension plan. Delta Air Lines may terminate its pilots pension plan, a federal judge ruled Monday. The judge said Delta met the burden of proving that ending the plan was vital to a plan to emerge from bankruptcy protection. Dec 12, 2006 Delta board weighs US Airways bid: The board of Delta Air Lines on Monday discussed US Airways' $8.5 billion bid during a conference call, according to media reports. The board is not expected to issue a formal position on the merger for several days. Dec 12, 2006 Delta, US Airways merger would create overlap, attorney says. For a merger with Delta Air Lines to be successful, US Airways must be willing to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. routes, landing rights, gates and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. to satisfy the concerns of regulators, an antitrust attorney says. Several carriers have expressed interest in purchasing assets from the merged carrier. Justice Department officials have met informally with both airlines to discuss the proposed merger. Dec 12, 2006 Comair union to release strike authorization vote. Comair's pilots union this week will announce the result of a strike authorization vote. The pilots union and the company will resume contract talks today. Comair says it must lower labor costs in order to emerge from bankruptcy protection. Dec 11, 2006 Editor: Aram Gesar, eMail: edit@AirGuideOnline.com For more global news, reviews, features and analysis, please go to: http://www.airguideonline.com/onlinenews.htm To Subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; our Newsletters: http://www.airguideonline.com/order_formsubs.htm#news To Advertise: advert@AirGuideOnline.com Dec 11, 2006 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion