DL is a goner, blah blah blah. DL hasn't even filed for bankruptcy yet and you're already saying they're done. Maybe you need to check your facts.
Well both Charles Schwab and Merryil Lynch estimate the probablity of Ch.11 at 85% or higher
. They have lost more than 600 million dollars for consecutive quarters, or roughly 30 million dollars a day. Even if they are no where near bankruptcy, this is absolutely unacceptable and shows the fallability of their leadership. Waiting to bankruptcy to wake-up is a terrible idea, and yet, what major reogranizations have they made? Zero
When an airline enters Ch.11, they are a TWA800 from losing the confidence and support of their customers and creditors. A high-profile disaster is a major pain to a healthy airline, and a death-blow to weak ones. By slipping into piss-poor financial health, DL
is really just rolling dice and praying all goes well. When the fate of your business hangs on variables that are out of your control, you are asking
to be screwed.
And Ch.11 is by no-means a safe haven. If you cannot secure creditors and bankruptcy courts deem it isn't in the interest of consumers for you to survive... you're planes end-up flying for another airline. Name one
financially prudent discion that DL
has made in the past 5 years? I ask for just one.
to show creditors they have a sound plan for working through bankruptcy, creditors are all looking at the song-and-dance UA
is putting on, and I will not be suprised in the least when creditors say "not a chance in hell," and move on. Investing in bankruptcy reconstruction is a huge risk for an investor... when you could just put that money in FL
stock and let them be place in the sun. I don't think DL
will liquidate, but a heavy reconstruction and layoff is inevitable.
[Edited 2004-10-20 01:24:27]