Tuesday, August 09, 2005

Would Someone Please

Put this thing out of its misery? Last trade was $1.95. AP (08.10.05):
"Shares of struggling Delta Air Lines fell sharply Tuesday, after the departure of two more executives and as speculation grew within the industry that the airline would seek another round of cuts from its pilots and other employees in a last-ditch effort to avoid a bankruptcy filing." Delta shares plummet as more executives quit
Delta's chief lobbyist quit, as has its treasurer. "The two are the latest executives to depart Delta, which has lost nearly $10 billion since 2001." Let's see. An average of $2.5 billion a year. In losses. "Delta stock, which is trading at a 32-year low, has lost about half its value in the past month. Adding to pressure on the shares, a Merrill Lynch analyst, Michael Linnenberg, lowered his rating on the stock to 'sell' from 'neutral' on Tuesday, saying the chances of a bankruptcy filing during the next two months had greatly increased." What's Delta going to do? "According to one scenario, Delta would ask pilots to agree to another $275 million in pay and benefit cuts, while its other employees would be required to give up another $125 million." "Those concession come on top of cuts that both groups made last year, when Delta nearly filed for bankruptcy protection. Delta's pilots, its only unionized group, granted concessions worth $1 billion, including a one-third cut in pay." Ahhh yes; then there's the indignity of C.O.D. Reuters (08.09.05):
"Delta Air Lines delayed a U.S. Securities and Exchange Commission filing on Tuesday, saying it was exploring ways to reduce the cash it must pay up front to secure a new credit card processor. The No. 3 airline, struggling to avoid a Chapter 11 filing, told the SEC its current contract for processing Visa and MasterCard charges expires on Aug. 29 and the new processor is requiring a 'significant cash reserve' to begin service." Delta Air delays US filing over card processors
Delta's been on life-support for months. Maybe it's just time to let it go, before they suck up more money from the employees and the pension plans.


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