CriticalPoint
Posts: 595
Joined: Thu Jan 19, 2017 5:01 pm

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 3:42 pm

Sancho99504 wrote:
What irritates me the most is that we have enough revenue generation to become debt free very quickly. I feel that all the "shareholders" must have shareholdings in finances as well. It's insane, even at 1.9% interest, to take on debt when you don't have to.



Corporate debt is not the same as personal debt. However, even personal debt can be good at the right terms.
 
heavymetal
Posts: 4571
Joined: Fri May 08, 2015 3:37 am

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 4:09 pm

deltaguy767 wrote:
heavymetal wrote:
Sancho99504 wrote:
What irritates me the most is that we have enough revenue generation to become debt free very quickly. I feel that all the "shareholders" must have shareholdings in finances as well. It's insane, even at 1.9% interest, to take on debt when you don't have to.


This statement shows a serious lack of basic corporate finance knowledge.

Perhaps we could use this as an opportunity to provide some learning versus putting people down:

For those who don't quite understand the implication here, a company is financed by a combination of equity (common stock in Delta's case) and debt (bank loans, bonds etc.). Equity is more 'expensive' in terms of the rate of return demanded because it is a riskier investment. The company has no contractual obligation to pay its equity holders in the event of a bankruptcy or failure. This is in contrast to debt wherein the creditor has a claim on the company's assets in order to make them whole, in the event of a default or bankruptcy, and the structure of their investment guarantees them specific payments (interest + principal) over a given period.

In sum, this means that equity is relatively 'more expensive' than debt. Therefore when Delta is considering its total cost of financing, it conducts a weighted average analysis weighing the costs of debt and equity from a relative perspective and finding an optimal value.

There are more complicated factors here which would impact this analysis (tax policy, credit ratings) etc., however, they do not impact the overall takeaways.

lhttps://en.wikipedia.org/wiki/Weighted_average_cost_of_capital - for more detail


I agree with you that this is a good educational opportunity, and your post summed this up nicely. But that assumes folks are willing to be educated. The original post was a definitive statement, not a question seeking to be educated.
 
winginit
Posts: 2555
Joined: Sat Feb 23, 2013 9:23 pm

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 5:44 pm

777Mech wrote:
Sancho99504 wrote:
What irritates me the most is that we have enough revenue generation to become debt free very quickly. I feel that all the "shareholders" must have shareholdings in finances as well. It's insane, even at 1.9% interest, to take on debt when you don't have to.



The simple fact is, if they had little to zero debt, there would be hostile takeovers.


I'll bite. I'm not going to refute that a company could engage in a hostile takeover of DL, but apart from maybe Berkshire, who would given the rep of commercial aviation investments since deregulation? What company or conglomerate could claim the expertise that would be required to provide shareholders with better returns than they're already experiencing from what is, not even arguably at this point anymore, the most profitable and best run airline in the country?
 
winginit
Posts: 2555
Joined: Sat Feb 23, 2013 9:23 pm

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 5:47 pm

Atlwarrior wrote:
I am probably one of the Delta fans on here, but my co-workers told me here flight to Germany two to three weeks ago was on an old airplane that was full. She mention that a lot of things didn’t work, and since the flight was full, she could not switch seats. I hope whichever plane she was on is due to retire or be refreshed. She said the plane back home was very nice. Coach was the class.


That would have been a 76W, and yes, DL's I believe have an average age of about 21 years. The older of the lot (namely those being used TPAC) are being retired and replaced by 339s, and the 'younger' are being fully retrofitted over the next two years.
 
panamair
Posts: 4102
Joined: Fri Oct 12, 2001 2:24 am

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 6:10 pm

winginit wrote:
Atlwarrior wrote:
I am probably one of the Delta fans on here, but my co-workers told me here flight to Germany two to three weeks ago was on an old airplane that was full. She mention that a lot of things didn’t work, and since the flight was full, she could not switch seats. I hope whichever plane she was on is due to retire or be refreshed. She said the plane back home was very nice. Coach was the class.


That would have been a 76W, and yes, DL's I believe have an average age of about 21 years. The older of the lot (namely those being used TPAC) are being retired and replaced by 339s, and the 'younger' are being fully retrofitted over the next two years.


Depends on where in Germany she was flying to, as DL uses the 764 on some ATL-Germany flights such as DUS. The 764s are the ones most in need of a refurbishment (they still have the small TV screens, and the IFE system is often crapping out); the 76Ws are in relatively good shape compared to the 764s...
 
winginit
Posts: 2555
Joined: Sat Feb 23, 2013 9:23 pm

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 6:11 pm

panamair wrote:
winginit wrote:
Atlwarrior wrote:
I am probably one of the Delta fans on here, but my co-workers told me here flight to Germany two to three weeks ago was on an old airplane that was full. She mention that a lot of things didn’t work, and since the flight was full, she could not switch seats. I hope whichever plane she was on is due to retire or be refreshed. She said the plane back home was very nice. Coach was the class.


That would have been a 76W, and yes, DL's I believe have an average age of about 21 years. The older of the lot (namely those being used TPAC) are being retired and replaced by 339s, and the 'younger' are being fully retrofitted over the next two years.


Depends on where in Germany she was flying to, as DL uses the 764 on some ATL-Germany flights such as DUS. The 764s are the ones most in need of a refurbishment (they still have the small TV screens, and the IFE system is often crapping out); the 76Ws are in relatively good shape compared to the 764s...


Ah. Yes good point I was, possibly incorrectly, assuming FRA which is 76Ws across the board.
 
SteelChair
Posts: 1157
Joined: Fri Aug 25, 2017 11:37 am

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 6:17 pm

777Mech wrote:
Sancho99504 wrote:
What irritates me the most is that we have enough revenue generation to become debt free very quickly. I feel that all the "shareholders" must have shareholdings in finances as well. It's insane, even at 1.9% interest, to take on debt when you don't have to.



The simple fact is, if they had little to zero debt, there would be hostile takeovers. It's one of the main reasons AS hasn't been bought out, they took on the excessive debt in VX.


I made reference to not wantjng to be completely debt free for this reason in my post of yesterday, which for some reason was deleted.

Also made reference to them not paying list prices and being able to pay for the entire A220 order with 1/2 of one years profits, but for some reason that was deleted also.
 
global1
Posts: 467
Joined: Fri Dec 19, 2014 5:31 pm

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 6:18 pm

The first 764 mod is almost complete. My understanding is that it will return to the US this month.
4 classes of service.
Delta1 suites
Delta Premium Select (premium economy)
Comfort Plus
Main Cabin
After the 764's are completed, work will begin on the 763 and then A330. The NEO's are coming off the factory with the new configuration.
A350's will be modified to include Comfort Plus.
 
Sancho99504
Posts: 642
Joined: Sun Dec 11, 2005 2:44 pm

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 7:20 pm

heavymetal wrote:
deltaguy767 wrote:
heavymetal wrote:

This statement shows a serious lack of basic corporate finance knowledge.

Perhaps we could use this as an opportunity to provide some learning versus putting people down:

For those who don't quite understand the implication here, a company is financed by a combination of equity (common stock in Delta's case) and debt (bank loans, bonds etc.). Equity is more 'expensive' in terms of the rate of return demanded because it is a riskier investment. The company has no contractual obligation to pay its equity holders in the event of a bankruptcy or failure. This is in contrast to debt wherein the creditor has a claim on the company's assets in order to make them whole, in the event of a default or bankruptcy, and the structure of their investment guarantees them specific payments (interest + principal) over a given period.

In sum, this means that equity is relatively 'more expensive' than debt. Therefore when Delta is considering its total cost of financing, it conducts a weighted average analysis weighing the costs of debt and equity from a relative perspective and finding an optimal value.

There are more complicated factors here which would impact this analysis (tax policy, credit ratings) etc., however, they do not impact the overall takeaways.

lhttps://en.wikipedia.org/wiki/Weighted_average_cost_of_capital - for more detail


I agree with you that this is a good educational opportunity, and your post summed this up nicely. But that assumes folks are willing to be educated. The original post was a definitive statement, not a question seeking to be educated.

Facebook, TRowe Price, Monster and Intuitive Surgical are all debt free companies with a market cap above $20B.

Debt can be and is useful in certain situations. In a high volatility industry, no matter how cheap the debt, doesn't mean it is smart.

Delta may be able to write down the interest on the debt, but they end up paying it in other areas anyway.

Attack the comment, not the person.
kill 'em all and let God sort 'em out-USMC
 
Sancho99504
Posts: 642
Joined: Sun Dec 11, 2005 2:44 pm

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 7:25 pm

777Mech wrote:
Sancho99504 wrote:
What irritates me the most is that we have enough revenue generation to become debt free very quickly. I feel that all the "shareholders" must have shareholdings in finances as well. It's insane, even at 1.9% interest, to take on debt when you don't have to.



The simple fact is, if they had little to zero debt, there would be hostile takeovers. It's one of the main reasons AS hasn't been bought out, they took on the excessive debt in VX.



There are a bunch of debt free companies in S&P 500 that have a market cap of $10B or more. To name a few, Garmin, Monster, T Rowe Price, Facebook, SkyWorks. How often do you hear about hostile takeovers of any of them?

The only way anyone could execute a hostile takeover of Delta, would have to be outside of the industry.
kill 'em all and let God sort 'em out-USMC
 
1989worstyear
Posts: 640
Joined: Sun Dec 04, 2016 6:53 pm

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 7:44 pm

global1 wrote:
The first 764 mod is almost complete. My understanding is that it will return to the US this month.
4 classes of service.
Delta1 suites
Delta Premium Select (premium economy)
Comfort Plus
Main Cabin
After the 764's are completed, work will begin on the 763 and then A330. The NEO's are coming off the factory with the new configuration.
A350's will be modified to include Comfort Plus.


I thought all of the 763's were going in 5 years due to the 1986 design?
Stuck at age 15 thanks to the certification date of the A320-200 and my parents' decision to postpone having a kid by 3 years. At least there's Dignitas...
 
Cactusjuba
Posts: 192
Joined: Thu Dec 14, 2017 8:06 am

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 9:26 pm

Sancho99504 wrote:
777Mech wrote:
Sancho99504 wrote:
What irritates me the most is that we have enough revenue generation to become debt free very quickly. I feel that all the "shareholders" must have shareholdings in finances as well. It's insane, even at 1.9% interest, to take on debt when you don't have to.



The simple fact is, if they had little to zero debt, there would be hostile takeovers. It's one of the main reasons AS hasn't been bought out, they took on the excessive debt in VX.



There are a bunch of debt free companies in S&P 500 that have a market cap of $10B or more. To name a few, Garmin, Monster, T Rowe Price, Facebook, SkyWorks. How often do you hear about hostile takeovers of any of them?

The only way anyone could execute a hostile takeover of Delta, would have to be outside of the industry.


In the mid 2000s Delta fought off a hostile takeover attempt by US Airways. Ed Bastion has mentioned that as one of the darkest days in his career. Delta leadership have mentioned literally multiple times, at least internally, that they never plan on going <4B in debt, for the very reasons mentioned above. Airlines have valuable assets that are attractive to raiders.
 
klm617
Posts: 4450
Joined: Sat Jul 04, 2015 8:57 pm

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 10:24 pm

questions wrote:
Is there additional info on the new American Express agreement? Plans for best-in-class value to customers? How Delta plans to double benefits of the agreement to $7B over five year period?


Source: news.delta.com
Delta Air Lines Announces 2019 March Quarter Profit

Customer Experience and Loyalty

• Signed an 11-year renewal with American Express, ensuring that the two companies continue to work together to deliver best-in-class value to customers, while doubling the expected benefits to Delta to nearly $7 billion annually by 2023 from $3.4 billion in 2018.


I am curious who eats the cost for all those free first bag fees that are lost to Delta when one carries the AMEX Credit card.
the truth does matter, guys. too bad it's often quite subjective. the truth is beyond the mere facts and figures. it's beyond good and bad, right and wrong...
 
Sancho99504
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Joined: Sun Dec 11, 2005 2:44 pm

Re: Delta Air Lines Q1 2019 earning thread

Thu Apr 11, 2019 11:14 pm

Cactusjuba wrote:
Sancho99504 wrote:
777Mech wrote:


The simple fact is, if they had little to zero debt, there would be hostile takeovers. It's one of the main reasons AS hasn't been bought out, they took on the excessive debt in VX.



There are a bunch of debt free companies in S&P 500 that have a market cap of $10B or more. To name a few, Garmin, Monster, T Rowe Price, Facebook, SkyWorks. How often do you hear about hostile takeovers of any of them?

The only way anyone could execute a hostile takeover of Delta, would have to be outside of the industry.


In the mid 2000s Delta fought off a hostile takeover attempt by US Airways. Ed Bastion has mentioned that as one of the darkest days in his career. Delta leadership have mentioned literally multiple times, at least internally, that they never plan on going <4B in debt, for the very reasons mentioned above. Airlines have valuable assets that are attractive to raiders.

A big thing that you conveniently left out is that Delta was in the middle of their bankruptcy. US Airways was in bankruptcy when Doug Parker slid in to takeover them. AA was in bankruptcy when Doug took over them.

Delta is in a position that a hostile takeover would be difficult at best and lunatic in reality. Delta definitely has some very attractive assets (JFK, LGA, LHR).
kill 'em all and let God sort 'em out-USMC
 
Sancho99504
Posts: 642
Joined: Sun Dec 11, 2005 2:44 pm

Re: Delta Air Lines Q1 2019 earning thread

Fri Apr 12, 2019 3:14 am

klm617 wrote:
questions wrote:
Is there additional info on the new American Express agreement? Plans for best-in-class value to customers? How Delta plans to double benefits of the agreement to $7B over five year period?


Source: news.delta.com
Delta Air Lines Announces 2019 March Quarter Profit

Customer Experience and Loyalty

• Signed an 11-year renewal with American Express, ensuring that the two companies continue to work together to deliver best-in-class value to customers, while doubling the expected benefits to Delta to nearly $7 billion annually by 2023 from $3.4 billion in 2018.


I am curious who eats the cost for all those free first bag fees that are lost to Delta when one carries the AMEX Credit card.

With annual fees and interest, I think AMEX might come out ahead on those free first bags.
kill 'em all and let God sort 'em out-USMC
 
winginit
Posts: 2555
Joined: Sat Feb 23, 2013 9:23 pm

Re: Delta Air Lines Q1 2019 earning thread

Fri Apr 12, 2019 4:40 pm

klm617 wrote:
I am curious who eats the cost for all those free first bag fees that are lost to Delta when one carries the AMEX Credit card.


Sancho99504 wrote:
With annual fees and interest, I think AMEX might come out ahead on those free first bags.


The financial paths are pretty fascinating, and we can see how it roughly plays out with a very simple example with estimated numbers:

- AMEX pays Delta $1,000 for 100,000 SkyMiles (I'm making that up as the actual rate is highly confidential)

- Jim the traveler signs up for a Delta Reserve Card, and gets those 100,000 SkyMiles as a welcome bonus so long as he meets the spending threshold. Jim pays AMEX the annual fee of $450

- Let's say Jim also has to finance some of his balance on that Reserve Card, so that's an additional $550 in interest to AMEX per year (Again I'm making these numbers up)

- Jim might now have some added loyalty to Delta given he has lounge access and 100,000 SkyMiles in his pocket, so let's say the result there is that he spends an additional $1000/yr on Delta where he otherwise would not have. Excluding bag fees and lounge fees let's cut that in half to $500/yr to Delta, which is a highly conservative estimate

- Here's a kicker, I believe that AMEX pays Delta something to the tune of $20 every time Jim uses the lounge with his membership via AMEX, so let's say that's $200/yr from AMEX to Delta

- Let's say Jim redeems those 100,000 Delta miles where he otherwise would have paid for a ticket, so a one-time Delta 'loss' of $500

So let's recap where we stand:

AMEX: -$1,000 up front to Delta and an additional -$200 to Delta per year for lounge, but now they get $1,000/yr from Jim in fees and interest
Delta: +1,000 from AMEX one-time, and a one-time loss from Jim's mileage redemption of -$500. +$1,000/yr from Jim's loyalty, but -$500/yr from Jim in lost bag fees and lounge fees and +$200/yr from AMEX in lounge fees

So for a $1,000 investment, AMEX gets $800/yr
Delta gets $500 up front and $700/yr under a very, very conservative estimate


Both Delta and AMEX win in a big way. It's beautiful really.
 
bkflyguy
Posts: 206
Joined: Wed Dec 05, 2012 6:25 pm

Re: Delta Air Lines Q1 2019 earning thread

Fri Apr 12, 2019 5:00 pm

Cactusjuba wrote:
Sancho99504 wrote:
777Mech wrote:


The simple fact is, if they had little to zero debt, there would be hostile takeovers. It's one of the main reasons AS hasn't been bought out, they took on the excessive debt in VX.



There are a bunch of debt free companies in S&P 500 that have a market cap of $10B or more. To name a few, Garmin, Monster, T Rowe Price, Facebook, SkyWorks. How often do you hear about hostile takeovers of any of them?

The only way anyone could execute a hostile takeover of Delta, would have to be outside of the industry.


In the mid 2000s Delta fought off a hostile takeover attempt by US Airways. Ed Bastion has mentioned that as one of the darkest days in his career. Delta leadership have mentioned literally multiple times, at least internally, that they never plan on going <4B in debt, for the very reasons mentioned above. Airlines have valuable assets that are attractive to raiders.


One of the reasons why Al Checci et. al. bought Northwest in a levered buyout is because, at that time, NW was relatively debt free but had a lot of assets that could be used to secure new debt. The sold a lot of assets to pay for the buyout (and take nice bonuses) and basically bankrupted NW in the process.
 
FSDan
Posts: 2619
Joined: Mon Jan 03, 2011 5:27 pm

Re: Delta Air Lines Q1 2019 earning thread

Fri Apr 12, 2019 6:04 pm

winginit wrote:
So let's recap where we stand:

AMEX: -$1,000 up front to Delta and an additional -$200 to Delta per year for lounge, but now they get $1,000/yr from Jim in fees and interest
Delta: +1,000 from AMEX one-time, and a one-time loss from Jim's mileage redemption of -$500. +$1,000/yr from Jim's loyalty, but -$500/yr from Jim in lost bag fees and lounge fees and +$200/yr from AMEX in lounge fees

So for a $1,000 investment, AMEX gets $800/yr
Delta gets $500 up front and $700/yr under a very, very conservative estimate


Both Delta and AMEX win in a big way. It's beautiful really.


Add to that that if Jim is flying 8-10 times per year (based on your estimate for lounge fees) and is saving ~$60 per roundtrip on bag fees, his card more or less pays for itself. It's basically a win-win-win assuming that Jim enjoys traveling.
This is my signature until I think of a better one.
 
winginit
Posts: 2555
Joined: Sat Feb 23, 2013 9:23 pm

Re: Delta Air Lines Q1 2019 earning thread

Fri Apr 12, 2019 6:07 pm

FSDan wrote:
winginit wrote:
So let's recap where we stand:

AMEX: -$1,000 up front to Delta and an additional -$200 to Delta per year for lounge, but now they get $1,000/yr from Jim in fees and interest
Delta: +1,000 from AMEX one-time, and a one-time loss from Jim's mileage redemption of -$500. +$1,000/yr from Jim's loyalty, but -$500/yr from Jim in lost bag fees and lounge fees and +$200/yr from AMEX in lounge fees

So for a $1,000 investment, AMEX gets $800/yr
Delta gets $500 up front and $700/yr under a very, very conservative estimate


Both Delta and AMEX win in a big way. It's beautiful really.


Add to that that if Jim is flying 8-10 times per year (based on your estimate for lounge fees) and is saving ~$60 per roundtrip on bag fees, his card more or less pays for itself. It's basically a win-win-win assuming that Jim enjoys traveling.


Bingo.
 
777Mech
Posts: 792
Joined: Sun Sep 11, 2016 10:54 pm

Re: Delta Air Lines Q1 2019 earning thread

Fri Apr 12, 2019 10:15 pm

winginit wrote:
777Mech wrote:
Sancho99504 wrote:
What irritates me the most is that we have enough revenue generation to become debt free very quickly. I feel that all the "shareholders" must have shareholdings in finances as well. It's insane, even at 1.9% interest, to take on debt when you don't have to.



The simple fact is, if they had little to zero debt, there would be hostile takeovers.


I'll bite. I'm not going to refute that a company could engage in a hostile takeover of DL, but apart from maybe Berkshire, who would given the rep of commercial aviation investments since deregulation? What company or conglomerate could claim the expertise that would be required to provide shareholders with better returns than they're already experiencing from what is, not even arguably at this point anymore, the most profitable and best run airline in the country?


Literally another other airline would try. The amount of valuable assets DL has would be attractive to any of them. A couple of posts above this summarizes the point I was trying to make.
 
User avatar
compensateme
Posts: 3279
Joined: Wed Jan 28, 2009 4:17 am

Re: Delta Air Lines Q1 2019 earning thread

Fri Apr 12, 2019 10:22 pm

winginit wrote:
FSDan wrote:
winginit wrote:
So let's recap where we stand:

AMEX: -$1,000 up front to Delta and an additional -$200 to Delta per year for lounge, but now they get $1,000/yr from Jim in fees and interest
Delta: +1,000 from AMEX one-time, and a one-time loss from Jim's mileage redemption of -$500. +$1,000/yr from Jim's loyalty, but -$500/yr from Jim in lost bag fees and lounge fees and +$200/yr from AMEX in lounge fees

So for a $1,000 investment, AMEX gets $800/yr
Delta gets $500 up front and $700/yr under a very, very conservative estimate


Both Delta and AMEX win in a big way. It's beautiful really.


Add to that that if Jim is flying 8-10 times per year (based on your estimate for lounge fees) and is saving ~$60 per roundtrip on bag fees, his card more or less pays for itself. It's basically a win-win-win assuming that Jim enjoys traveling.


Bingo.


If you’re traveling 8-10 times per year, you’re probably a Medallion and exempt from the fees anyway ;).
We don’t care what your next flight is.
 
User avatar
seabosdca
Posts: 6511
Joined: Sat Sep 01, 2007 8:33 am

Re: Delta Air Lines Q1 2019 earning thread

Fri Apr 12, 2019 11:06 pm

We have a lot of neo-Puritans in America with a moral or philosophical aversion to debt.

But debt's a valuable tool and it's honestly pretty silly not to use it at sane levels, especially when (as has been true for a very long time) it's cheap. That's true both for businesses and individuals. With debt, you can control the timing of investments, and solve cash-flow-killing problems immediately rather than waiting for years.

As an extreme example in a personal context, let's imagine that you just graduated from college and were lucky enough to get a nice-paying job upon graduation. But the job's in a suburban office park, you don't have a car, and you don't have any cash because you were a broke student. Is it better to buy a reliable car using a moderately sized loan, which you have no doubt you can pay back without affecting other financial goals, or to Stay Out Of Debt and turn down the job or risk the job by buying a $500 crapcan car that might stop running any time?

Philosophically similar situations arise every day for every business, and that's why every business of any size has at least some debt, and businesses as capital-intensive as airlines tend to have more debt.
 
Sancho99504
Posts: 642
Joined: Sun Dec 11, 2005 2:44 pm

Re: Delta Air Lines Q1 2019 earning thread

Sat Apr 13, 2019 12:15 am

777Mech wrote:
winginit wrote:
777Mech wrote:


The simple fact is, if they had little to zero debt, there would be hostile takeovers.


I'll bite. I'm not going to refute that a company could engage in a hostile takeover of DL, but apart from maybe Berkshire, who would given the rep of commercial aviation investments since deregulation? What company or conglomerate could claim the expertise that would be required to provide shareholders with better returns than they're already experiencing from what is, not even arguably at this point anymore, the most profitable and best run airline in the country?


Literally another other airline would try. The amount of valuable assets DL has would be attractive to any of them. A couple of posts above this summarizes the point I was trying to make.

And it would be a great reason to maybe not be entirely debt free 12 years ago when there were 3 times as many airlines running around. Delta's biggest assets are real estate and slot related. Sure the A350 fleet is nice. But according to Anet lore, nobody wants A330NEOs or A220s. Would Delta be such a valuable takeover if X airline had to divest LGA and JFK to make it work?
kill 'em all and let God sort 'em out-USMC

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