Delta sells ASA to Skywest

[lucky81698]

http://biz.yahoo.com/ap/050815/delta.html?.v=9

I had heard this rumor back in June so it finally did happen.

[roz]

And here's the 10-Q--click on your preferred version--there's some interesting stuff in there: http://investor.delta.com/redesign/edgar.cfm

[trigeek]

Yep, my husband has gone into freak out mode. I was up with him until 4am last night trying to distract his mind from the craziness. He is Skywest, and we're both praying that this work out positively for all the Delta RJ groups (Skywest, Comair & ASA). I need more coffee, this day is going to be long and tough (like 3 hours of sleep). Maybe I should go buy some new cute outfits to distract his mind from the addictive gossip churners.

[Kristie]

I'm afraid that not much can be done to distract against news like this! just have to take it as it flows and move one step at a time!! I don't think anyone knows how this is going to work out!!

altho, you could try a good meal - you know what they say about men and their tummy's!

I actually thought they would have sold Comair first...I had no idea Skywest was even looking to aquire!:googleeye

[roz]

The Skywest deal has been bantered around for months. There are lots of rumors as to who will puchase Comair.

Needless to say, Delta needs $750 MM to back up its Mastercard/VISA processor. The contract expired 8/31 but they got an extension to 10/31. This deal only brings $350 MM in immediate cash. So they are short. Plus they have some major debt due in December (and a lot more is due in 2006).

They really took a bath on the ASA deal. They bought the remaining 78% of the stock in 1999 for $700 MM. They bought the remaining 74% of Comair stock for $1.8 billion in 1999. Let's hope they get a better return from the sale of Comair.

[Kristie]

do you think they took that bath on purpose Roz?? I won't say for what.. but you know what i mean!

you should see it over on jetcareers...turning into mayhem about speculations on both NWA and DAL! even one guy is doing "short stocks" on DAL which pisses me off, but hey - he'll get his karma, esp since he's building time to get into the majors (dumba**)! hahaha

but it's getting pwetty qwaizy out der!

[roz]

No, I think they took the bath out of desperation. Remember, they wrote off the investments as worthless earlier this year. There really wasn't much to sell other than people (which, in this industry, are not worth much to employers anymore).

1 didn't find that post, Kristie (I lurked). I did see an unfactual post about AWA/US: http://jetcareers.com/forums/showfla...b=5&o=&fpart=1

What will likely happen (since both MEC's are supporting this) is that furloughed US pilots will be hired by AWA which is planning on hiring in 2006. They will keep their US seniority number but start at the bottom at AWA. They are looking at giving credit for years of service for pay purposes. Since they retain their seniority number at US, they have the right to recall to their original spot on the list if recalls occur. Once all are recalled, then hiring off the street will resume. So the group that are toast are the AWA poolies, apparently.

[lucky81698]

I don't know, my DH's cousin is at the bottom of the US list and is expecting to be furloughed soon! At least that is what is mother told me 15 min ago. Of course she has been known to get things screwed up!

[roz]

The August 6 America West pilot’s code-a-phone message, which can be heard at 800-438-2572, prompt 2, indicated that US Airways/America West management has agreed with ALPA from both company’s that as result of the transition talks, future 2006 new hires will come from furloughed US Airways pilots. With nearly 2,000 furloughed pilots the parties agreed that “conceptually there will be no new hires for some time to come.”

In a recent letter to AWA pilots, Herb Holland, Communications Committee Chairman told the rank-and-file that US Airways furloughees will be hired at America West and will have "new hire" seniority and be paid at their current longevity.

Once recalled by the new US Airways then these pilots will have their seniority adjusted to a a negotiated agreement between the Merger Committee's or an Arbitrated solution.

So, I hope Mom is wrong!