Did Delta just buy Republic?
03-26-2016, 11:12 AM
#81
Banned
Joined APC: Oct 2014
Position: 6 Train - Panhandler
Posts: 2,001
Is this a bit cryptic at the end or what? haha brilliant choice of words.
"Along with this goal, Republic Airways' bankruptcy attorneys filed a motion in the US Bankruptcy Court in the Southern District of New York to authorize a comprehensive agreement between Republic Airways and Delta Air Lines (NYSE
AL) that should accomplish a substantial portion of the regional airline's goals from its bankruptcy endeavor."
Republic Airways: A Look At The Delta Air Lines Agreement - Republic Airways Holdings, Inc. (OTCMKTS:RJETQ) | Seeking Alpha
"Along with this goal, Republic Airways' bankruptcy attorneys filed a motion in the US Bankruptcy Court in the Southern District of New York to authorize a comprehensive agreement between Republic Airways and Delta Air Lines (NYSE
AL) that should accomplish a substantial portion of the regional airline's goals from its bankruptcy endeavor."Republic Airways: A Look At The Delta Air Lines Agreement - Republic Airways Holdings, Inc. (OTCMKTS:RJETQ) | Seeking Alpha
03-26-2016, 11:38 AM
#83
Gets Weekends Off
Joined APC: Aug 2011
Posts: 394
What most likely happened here is that BB called daddy-D and said, "either you agree to all of these terms or we dump all of your flying and allocate our assets and crews to our other, more lucrative partners, UAL and AA". Delta has been raping regionals for decades and it seems like now republic has an upper hand through BK to renegotiate everything. Im sure Delta did the math, shopped out republic flying to other carriers-non of which can take the additional flying, and decided it was best to just bend over and take it. What goes around comes around Delta.
Heres what Delta gives republic:
Reduce that preposterous lawsuit amount seeking a billion in damages from Republic to only 170 million
Delta pays higher rates for flying going forward
Delta pays higher rates retroactively for flying done in the past
Delta gives financing credit of 75 Million.
Republic is NOT REQUIRED to end flying with other partners-UAL and AA like 9E was.
Why else would Delta agree to any of this if they weren't screwed without Republic???
UAL and AA, you're next-get your wallets out!!!
Heres what Delta gives republic:
Reduce that preposterous lawsuit amount seeking a billion in damages from Republic to only 170 million
Delta pays higher rates for flying going forward
Delta pays higher rates retroactively for flying done in the past
Delta gives financing credit of 75 Million.
Republic is NOT REQUIRED to end flying with other partners-UAL and AA like 9E was.
Why else would Delta agree to any of this if they weren't screwed without Republic???
UAL and AA, you're next-get your wallets out!!!
I don't think you understand how Chapter 11 bankruptcy works.
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03-26-2016, 11:40 AM
#84
Gets Weekends Off
Joined APC: Oct 2014
Position: Downward-Facing Dog Pose
Posts: 1,537
Delta has been raping regionals for decades and it seems like now republic has an upper hand through BK to renegotiate everything. Im sure Delta did the math, shopped out republic flying to other carriers-non of which can take the additional flying, and decided it was best to just bend over and take it. What goes around comes around Delta.
True or not, I'd just like to add a little recent history here.
As some of you may know, Delta has been re-negotiating it's pilot contract, of which the first offer was turned down by the pilots.
Last year Delta was sitting on $8 BILLION in profits
, and Richie Anderson's (CEO) compensation went from $8M in 2010 to over $19M last year. 95% of which is (and was) in stock and options (all the better to avoid paying taxes). Meanwhile, DAL pilots had given up concessions in their last two contracts going back into the early 00's, with promises from DAL mgmt that it would make them whole when the airline returned to profitability. So what did Anderson do with those $8B profits in the middle of negotiating with his pilot group?A: Used them to engage in a corp. stock buyback program...which means he was double-dipping in that he was paid in stock, then used corp. profits to run up the stock price "in order to reward our shareholders and investors".
True story.
03-26-2016, 11:55 AM
#85
Gets Weekends Off
Joined APC: Jul 2007
Posts: 919
True or not, I'd just like to add a little recent history here.
As some of you may know, Delta has been re-negotiating it's pilot contract, of which the first offer was turned down by the pilots.
Last year Delta was sitting on $8 BILLION in profits, and Richie Anderson's (CEO) compensation went from $8M in 2010 to over $19M last year. 95% of which is (and was) in stock and options (all the better to avoid paying taxes). Meanwhile, DAL pilots had given up concessions in their last two contracts going back into the early 00's, with promises from DAL mgmt that it would make them whole when the airline returned to profitability. So what did Anderson do with those $8B profits in the middle of negotiating with his pilot group?
A: Used them to engage in a corp. stock buyback program...which means he was double-dipping in that he was paid in stock, then used corp. profits to run up the stock price "in order to reward our shareholders and investors".
True story.
As some of you may know, Delta has been re-negotiating it's pilot contract, of which the first offer was turned down by the pilots.
Last year Delta was sitting on $8 BILLION in profits
, and Richie Anderson's (CEO) compensation went from $8M in 2010 to over $19M last year. 95% of which is (and was) in stock and options (all the better to avoid paying taxes). Meanwhile, DAL pilots had given up concessions in their last two contracts going back into the early 00's, with promises from DAL mgmt that it would make them whole when the airline returned to profitability. So what did Anderson do with those $8B profits in the middle of negotiating with his pilot group?A: Used them to engage in a corp. stock buyback program...which means he was double-dipping in that he was paid in stock, then used corp. profits to run up the stock price "in order to reward our shareholders and investors".
True story.
03-26-2016, 02:04 PM
#87
Gets Weekends Off
Thread Starter
Joined APC: Aug 2012
Posts: 294
03-26-2016, 02:45 PM
#89
Gets Weekends Off
Joined APC: Mar 2014
Posts: 569
True or not, I'd just like to add a little recent history here.
As some of you may know, Delta has been re-negotiating it's pilot contract, of which the first offer was turned down by the pilots.
Last year Delta was sitting on $8 BILLION in profits, and Richie Anderson's (CEO) compensation went from $8M in 2010 to over $19M last year. 95% of which is (and was) in stock and options (all the better to avoid paying taxes). Meanwhile, DAL pilots had given up concessions in their last two contracts going back into the early 00's, with promises from DAL mgmt that it would make them whole when the airline returned to profitability. So what did Anderson do with those $8B profits in the middle of negotiating with his pilot group?
A: Used them to engage in a corp. stock buyback program...which means he was double-dipping in that he was paid in stock, then used corp. profits to run up the stock price "in order to reward our shareholders and investors".
True story.
As some of you may know, Delta has been re-negotiating it's pilot contract, of which the first offer was turned down by the pilots.
Last year Delta was sitting on $8 BILLION in profits
, and Richie Anderson's (CEO) compensation went from $8M in 2010 to over $19M last year. 95% of which is (and was) in stock and options (all the better to avoid paying taxes). Meanwhile, DAL pilots had given up concessions in their last two contracts going back into the early 00's, with promises from DAL mgmt that it would make them whole when the airline returned to profitability. So what did Anderson do with those $8B profits in the middle of negotiating with his pilot group?A: Used them to engage in a corp. stock buyback program...which means he was double-dipping in that he was paid in stock, then used corp. profits to run up the stock price "in order to reward our shareholders and investors".
True story.
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