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enilria
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DL: Investment Strategy In Other Airlines "Essentially Complete"

Thu Jan 11, 2018 3:16 pm

On the investor call, Ed Bastian said : "Our portfolio of asset investments (in other airlines) is essentially complete".

This is interesting in that I assumed they would continue this strategy going forward with more and more airlines until a cross-ownership JV strategy essentially supplanted SkyTeam. That may still have happened, but it sounds like there are not other steps envisioned at this point.
 
FSDan
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Re: DL: Investment Strategy In Other Airlines "Essentially Complete"

Thu Jan 11, 2018 3:31 pm

Can someone summarize what DL's current holdings are? I know they have stakes in AM, G3, and VS (and I think it's up to 49% for a few of those), but do they have any holdings in other partners such as VA and 9W?

Also, do JVs count as "asset investments"? I believe the full list of JV partners as of now is WS (still undergoing approval?), AM, VS, AF/KL/AZ, KE, and VA. Did I miss any?
This is my signature until I think of a better one.
 
 
deltal1011man
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Re: DL: Investment Strategy In Other Airlines "Essentially Complete"

Thu Jan 11, 2018 3:49 pm

enilria wrote:
On the investor call, Ed Bastian said : "Our portfolio of asset investments (in other airlines) is essentially complete".

This is interesting in that I assumed they would continue this strategy going forward with more and more airlines until a cross-ownership JV strategy essentially supplanted SkyTeam. That may still have happened, but it sounds like there are not other steps envisioned at this point.

Could we not just do one thread on the Delta Q4 stuff instead of multiple?
FSDan wrote:
Can someone summarize what DL's current holdings are? I know they have stakes in AM, G3, and VS (and I think it's up to 49% for a few of those), but do they have any holdings in other partners such as VA and 9W?

Also, do JVs count as "asset investments"? I believe the full list of JV partners as of now is WS (still undergoing approval?), AM, VS, AF/KL/AZ, KE, and VA. Did I miss any?


Investments: MU(~3-4%), G3(~10%), VS(49%), AM(49%), AF/KL(10%)

JVs, VS, VA, AM, AF/KL, AZ, KE and WS.
 
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enilria
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Re: DL: Investment Strategy In Other Airlines "Essentially Complete"

Thu Jan 11, 2018 3:57 pm

deltal1011man wrote:
Could we not just do one thread on the Delta Q4 stuff instead of multiple? .

As soon as the news articles get posted it will become its own thread anyway.
 
simairlinenet
Posts: 789
Joined: Sat Oct 29, 2005 2:24 am

Re: DL: Investment Strategy In Other Airlines "Essentially Complete"

Thu Jan 11, 2018 4:06 pm

Check out slide 29 on http://s1.q4cdn.com/231238688/files/doc ... y_2017.pdf

This slide shows the top 10 international markets from the U.S. Delta's investor focus has of course been in trying to fill those 10 markets. What could be left on that slide or elsewhere?
-Deepening existing equity arrangements
-Adding Korean Air
#4 Japan: no opportunities
#5 Canada: equity in WestJet
#7 Germany: no opportunities
#8 India: Jet Airways
#9 Italy: not a good idea
 
TUSDawg23
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Re: DL: Investment Strategy In Other Airlines "Essentially Complete"

Thu Jan 11, 2018 4:07 pm

I think DL is being prudent by not pushing too much harder in ownership stakes in other carriers. They have probably seen the hard lesson EY has had to learn here.
 
ScottB
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Re: DL: Investment Strategy In Other Airlines "Essentially Complete"

Thu Jan 11, 2018 6:03 pm

TUSDawg23 wrote:
I think DL is being prudent by not pushing too much harder in ownership stakes in other carriers. They have probably seen the hard lesson EY has had to learn here.


I think the only "hard lesson" to be learned from EY, which is not a hard lesson at all (because it is common sense), is to not invest in troubled carriers unless one is willing and able to lose the entire investment -- and that could have been learned from SR. If the owner is willing to sell for cheap, it might not be a good buy unless you have a well-planned and feasible strategy to fix the business's various problems. In the case of AZ, for example, there's basically no way to fix the airline's structural problems, so they were throwing their money into a bonfire.
 
Yahnih
Posts: 112
Joined: Wed Jul 05, 2017 7:07 am

Re: DL: Investment Strategy In Other Airlines "Essentially Complete"

Fri Jan 12, 2018 3:39 am

I think Japan govt might of regretted the decision of the non acquisition of SkyMark by Delta... the transition to ICN as a hub seems like a positive move for both Korea and Delta. Given the facilities itself are in a better position with the opening of T2. There will be a lot of vacant spots in T1 which many airlines might more than willing to expand their operations at ICN given the right incentives.
 
hayzel777
Posts: 614
Joined: Wed Mar 16, 2016 3:18 am

Re: DL: Investment Strategy In Other Airlines "Essentially Complete"

Fri Jan 12, 2018 6:45 am

Yahnih wrote:
I think Japan govt might of regretted the decision of the non acquisition of SkyMark by Delta... the transition to ICN as a hub seems like a positive move for both Korea and Delta. Given the facilities itself are in a better position with the opening of T2. There will be a lot of vacant spots in T1 which many airlines might more than willing to expand their operations at ICN given the right incentives.

They didn’t really have a choice...Airbus and Intrepid were the majority creditors.
 
SteelChair
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Joined: Fri Aug 25, 2017 11:37 am

Re: DL: Investment Strategy In Other Airlines "Essentially Complete"

Fri Jan 12, 2018 3:55 pm

Yahnih wrote:
I think Japan govt might of regretted the decision of the non acquisition of SkyMark by Delta... the transition to ICN as a hub seems like a positive move for both Korea and Delta. Given the facilities itself are in a better position with the opening of T2. There will be a lot of vacant spots in T1 which many airlines might more than willing to expand their operations at ICN given the right incentives.


My understanding of the Japanese government with regard to foreign airlines operating there under grandfathered rights left over from World War II is that they wanted those airlines gone whatever it took.

Also, ICN has never really met it's potential......hubbing there is a different animal than Japan.....and everything changed (flows of traffic) after the fall of the CCCP and Polar overflight became possible and the long range twins came into being. To summarize, I think that there are still too many moving pieces in place to make such an assertion that they will regret getting rid of a foreign competitor. My reading of the Japanese mentality is that the don't really want foreign companies doing there actually inside their country (MHO, I could be wrong).

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