What’s wrong with the Management and shareholders of Delta Airlines?

Question

Last year, Delta Airlines lost over $5 billion. They have a huge debt as high as $30 billion. Its balance sheet does not balance because its net worth is minus $10 billions. They have been in bankruptcy for awhile and just recently borrowed $9 billion dollars. If Delta was a house, the owner does not have any equity in the house and continues to pay its loan without building an equity because on top on the mortgage loan, the owner pays a second mortgage. They are like more of an apartment that pays rent and doesn’t get back anything from it. I decided to bring up this issue here because of the visibility and popularity of the Yahoo Answers website, and with the hope that somehow a member of Delta management would come forward and explain why Delta believes it can survive. Delta operates seventy (70) 727 airplanes, with oldest delivered in 1972. These airplanes consume fuel like army tanks on steroids. How does anyone expect Delta to make money? I hope this message will save many people a lot of money by not buying Delta stocks.

Answer 1

This isn't going to 'save' anyone any money, and you know this isn't the reason you are posting this here.

Thanks to it's unions, Delta is in trouble, and will likely fold or get bought out.

And yes, it is management's fault. They should never have caved in to the union demands in the first place.

Answer 2

Delta will survive thru bankruptcy just as other the airlines did. Delta will survive because there are too many employees that are dedicated to their company. There are too many people that refuse to let Delta go away. Hence- they launched a "Keep Delta my Delta" campgain and it worked. They fought off US Airways. And they no longer fly 727's- they retired those back in 2001- they have lots of other planes-767's,757's,737-800's.so don't write off Delta. They are not going going away...........Look at American and United- both emerged from bankruptcy just fine. Who was the only airline that survived initially thru 9/11? Oh ya- it was Delta

Answer 3

Delta is the airline that I typically fly and that i fly a minimum of 12 cases or extra in a year. protection would not seem an situation with Delta. If, they're uncertain they received't leave till each and every thing is cleared-upkeep or mechanical topics. Their provider is enormously sturdy yet, like each and every airways they don't seem perfect. although, they warfare to make issues properly if, you well known the difficulty.

Answer 4

There is only one profitable major airline, and that's Southwest. All other major airlines are in the red. Southwest is profitable because it provides cheap, efficient service. I always fly with them if I can. Even though other airlines are more comfortable & offer a wide variety of services, Southwest still gets me from point A to point B. (getting to the destination is more important than sitting in first class.)