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By: - 18th February 2006 at 22:07 Permalink - Edited 1st January 1970 at 01:00
i have also heard that there is no posible way for either to go under
Theres nothing stopping them
By: - 18th February 2006 at 22:12 Permalink - Edited 1st January 1970 at 01:00
Well I cant tal to much about NW but Dela are definitley struggling. There are consistently cancelling their DUB-ATL flights because loads are as low as 3 passengers some days at the moment.
I reliase its quite season at the moment but 3 is reidicolous. They are just cancelling flights and combing 2/3 flights ad operating it on certain days.
Hopfully things will pick up for the summer when they restart DUB-JFK.
By: - 18th February 2006 at 22:23 Permalink - Edited 1st January 1970 at 01:00
ATLANTA, February 14, 2005 – Delta Air Lines (Other OTC: DALRQ) today reported results for the quarter and year ended December 31, 2005. Key points include:
Delta’s fourth quarter net loss was $1.2 billion. Excluding reorganization and special items, the fourth quarter net loss was $782 million.
For 2005, Delta’s net loss was $3.8 billion. Excluding reorganization and special items, the full year 2005 net loss was $2.2 billion.1,2
Despite significant losses, Delta achieved important milestones in its reorganization during the fourth quarter of 2005, including strengthening its route network, making progress in restructuring its aircraft fleet and reducing its employment costs.
As of December 31, 2005, Delta had $2.9 billion in cash and cash equivalents, of which $2.0 billion was unrestricted.
Delta reported a net loss of $1.2 billion in the fourth quarter of 2005, compared to a net loss of $2.2 billion in the fourth quarter of 2004. Excluding the reorganization and special items described below, the net loss was $782 million in the fourth quarter of 2005. Excluding the special items described below, the net loss was $780 million in the fourth quarter of 2004.
For the full year 2005, Delta recorded a net loss of $3.8 billion, compared to 2004's full year net loss of $5.2 billion. Excluding reorganization and special items, the net loss was $2.2 billion in 2005. Excluding the special items described below, the net loss was $2.3 billion in 2004.
Source: www.Delta.com
By: - 18th February 2006 at 22:28 Permalink - Edited 1st January 1970 at 01:00
NORTHWEST AIRLINES
NEW YORK – (January 20, 2006) -- John E. Luth, chairman, president and chief executive officer of Seabury Group LLC, which is a leading investment banking and advisory services firm in the aviation field, today testified that reducing Northwest’s debt by $4.2 to $4.4 billion, increasing liquidity by $1.25 billion and obtaining competitive labor costs are three of the most significant changes that Northwest Airlines
FINANCIAL SITUATION
Luth testified that Northwest’s losses, and the actions it was forced to take to cope with those losses during the last several years, have left it in a weak financial position. “Northwest has lost $4 billion since 2001, and during its first four months of Chapter 11, lost $4 to $5 million per day,” Luth said. “Despite raising $2.3 billion in net new, non-aircraft debt and selling $1.6 billion of assets since 2001, the airline’s liquidity has declined significantly in 2005, due to underlying operating losses. Northwest’s liquidity, as a percentage of revenue, at approximately 10 percent, is now the lowest in the industry despite these extensive borrowings and asset sales.”
Future fleet needs
Given the recent increase in fuel costs, reducing Northwest’s average fleet age will be instrumental to its future success, Luth said. “At an average age of 18 years, Northwest’s fleet is more than twice as old as the industry average of eight years and older than the fleets of all of its legacy and low-cost carrier competitors. Northwest has approximately $3.7 billion of commitments to acquire modern aircraft, comprised of Airbus A330s and the Boeing 787.”
Source: www.nwa.com
By: - 18th February 2006 at 22:33 Permalink - Edited 1st January 1970 at 01:00
Northwest Airlines Reports January Traffic
EAGAN, Minn. -- (February 3, 2006) -- Northwest Airlines (OTC: NWACQ:PK) today announced a systemwide January load factor of 80.9 percent, 4.1 points above January 2005. Northwest flew 5.43 billion revenue passenger miles (RPMs) and 6.71 billion available seat miles (ASMs) in January 2006, a traffic decrease of 6.7 percent and a capacity decrease of 11.5 percent versus January 2005.
Northwest Finance Executive Says Labor Cost Reductions Critical To Survival
NEW YORK – (January 18, 2006) -- Northwest Airlines’ (OTC: NWACQ.PK) David M. Davis, senior vice president - finance and controller, said the airline’s financial problems can be overcome only if a competitive cost structure can be implemented that will permit significant labor savings.
Davis’ remarks were prepared for presentation at the U.S. Bankruptcy Court for the Southern District of New York hearing today regarding Northwest’s motions, filed under Sections 1113(c) and 1114 of the Bankruptcy Code, asking the court to reject the company’s collective bargaining agreements with the Air Line Pilots Association (ALPA) and the Professional Flight Attendants Association (PFAA). Yesterday, the hearing began on the company’s motions under Section 1113(c), as well as Section 1114 to modify its retiree employee benefits.
“We cannot continue to lose $4 to $5 million per day on top of the $14 billion debt and declining cash balance that we have. Northwest’s cash and debt position is unacceptable and among the worst in the industry. We have sold $1.6 billion in assets since 2001, yet have added $2.3 billion in debt. At this rate, by the end of 2006, our cash balance will be less than $700 million without labor cost relief,” said Davis.
“Northwest’s pay per employee is the highest in the industry. We must address our payroll of $3.6 billion along with work rule issues to make Northwest competitive. The low-cost carriers (LCCs) represented only 8 percent of the market in 1990, today they represent 28 percent, and are forecast to control at least 37 percent of the domestic market by as soon as 2010.”
“The LCCs have 1,025 aircraft on order or option. With these aircraft they are aggressively moving into Northwest markets and dropping fares, putting pressure on yields that have continued to decline for more than a decade,” Davis commented.
“Our competitors are rapidly deploying 70-100 seat aircraft in more than 100 of our markets. No other legacy carrier has a lower percentage of regional departures in their operation and this too must change if we are going to be viable. Work rules must not bind Northwest’s 34,000 employees from being competitive in the current environment.”
In summarizing his presentation, Davis said, “We believe our business plan is the correct path forward. We need to reduce our fleet by 15 percent, reducing unprofitable flying and exit unprofitable markets which will save Northwest $400 million annually.”
“On our domestic network we must match the narrow-body fleet with demand. Internationally, we must optimize our Atlantic schedule and add new routes in the Pacific as our Boeing 787s are delivered. The introduction of the new technology Boeing 787 aircraft and expansion of the Airbus 330 fleet are estimated to improve profitability in excess of $150 million annually.”
“To buy these new aircraft we must produce sufficient cash to support up to $11 billion in capital requirements needed to achieve fleet renewal over the next 10 years. However, none of this can be achieved without achieving permanent labor cost reductions with ALPA, the International Association of Machinists and Aerospace Workers (IAM) and PFAA unions and retirees,” Davis said.
The IAM, which represents Northwest’s ground employees, has agreed to present the company’s contract settlement proposal to its members for ratification. As a result of this agreement, IAM and Northwest asked the bankruptcy court judge to postpone IAM’s portion of the 1113(c) proceedings.
Achieving competitive labor costs is essential to the success of Northwest's business plan. The combination of competitive labor costs and completion of the other aspects of Northwest's restructuring will allow the airline to be a successful long-term competitor and provide the most secure future for the company.
Northwest Airlines is the world’s fifth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,200 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world’s most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents.
Source: www.nwa.com
By: - 18th February 2006 at 22:40 Permalink - Edited 1st January 1970 at 01:00
not on topic as such...
AMERICAN AIRLINES
AMR Corporation Reports A Fourth Quarter Loss Of $604 Million, As Compared To A $387 Million Loss In 2004
High Fuel Prices And Competitors With Lower Costs Continued To Impact American's Financial Performance
Despite These Headwinds, AMR's Fourth Quarter Results, Excluding Special Items, Improved Year Over Year
FORT WORTH, Texas – AMR Corporation, parent company of American Airlines, Inc., today reported a net loss of $604 million in the fourth quarter of 2005, or $3.49 per share, as compared to a net loss of $387 million, or $2.40 per share, in the fourth quarter of 2004. The loss for the fourth quarter of 2005 includes a net $191 million negative impact of special items, including $155 million for aircraft charges, $73 million for facility charges and a $37 million gain related to debt restructuring. Without these special items, AMR would have recorded a net loss of $413 million, or $2.39 per share, in 2005. The net loss in the fourth quarter of 2004 was $473 million, or $2.94 per share, excluding an $86 million net gain due to special items.
For the year 2005, AMR posted a $93 million operating loss and a net loss of $861 million, as compared to 2004's full-year operating loss of $144 million and net loss of $761 million. Special items resulted in a net charge of $180 million in 2005 and a net gain of $135 million in 2004. Excluding these special items, the Company's net loss would have been $681 million in 2005, with operating earnings of $100 million, and $896 million in 2004, with an operating loss of $133 million.
Source: www.aa.com
By: - 18th February 2006 at 22:43 Permalink - Edited 1st January 1970 at 01:00
Not on topic as such, but along the same themes
Continental Airlines
Continental Airlines Announces 2005 Fourth Quarter and Full Year Loss
HOUSTON, Jan 17, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Continental Airlines (NYSE: CAL) today reported a fourth quarter 2005 net loss of $43 million ($0.53 diluted loss per share), including a gain of $106 million related to the sale of Copa stock and other special charges of $21 million. Excluding these special items, Continental recorded a net loss of $128 million for the quarter ($1.58 diluted loss per share).
Continental incurred a net loss of $68 million for the full year 2005 ($0.97 diluted loss per share), including all 2005 special items. Excluding those special items, Continental recorded a net loss of $205 million for the full year 2005 ($2.93 diluted loss per share). The 2005 loss was the result of increased competition from low-cost carriers and the inability to recover, through fare increases, the higher cost of fuel. In 2005, mainline fuel costs were $856 million higher than in 2004.
"We continue to face significant challenges," said Chairman and Chief Executive Officer Larry Kellner. "The price of oil still hovers at record high prices, JetBlue has invaded our Newark hub, Delta is using its bankruptcy advantage to expand into our profitable international markets and United Airlines, flush with $3 billion in exit financing and greatly reduced costs, is coming out of bankruptcy.
"However, thanks to the personal sacrifice of my co-workers who took wage and benefit reductions in 2005, Continental has been able to avoid the path of bankrupt carriers and launch one of the largest international expansion plans in our company's history," Kellner added.
Source: www.continental.com
By: - 18th February 2006 at 22:58 Permalink - Edited 1st January 1970 at 01:00
Interesting read, thanks for taking the time to source it.
By: - 18th February 2006 at 23:10 Permalink - Edited 1st January 1970 at 01:00
Not a problem at all! :)
By: - 19th February 2006 at 11:42 Permalink - Edited 1st January 1970 at 01:00
Thanks God I booked with a credit card (see signature below)! We've used Delta quite alot over the years and it'd be a shame to see my favourite airline go under after all these years
Posts: 24
By: ASU01 - 18th February 2006 at 21:49
I was woundering what you all think about NW and DL current situation and how and if they get out of it. I have heard some people say that they deserve it becasue they both suck and i have also heard that there is no posible way for either to go under so what are your thoughts.