If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. |
|
|
Thread Tools | Display Modes |
#1
|
|||
|
|||
Delta Air Lines May Drop Preparation For Chapter 11 Filing
More details have come out. It turns out that AE negotiated a priority
position in case of default. I wonder what the accounting implications for that are? Delta may have a problem with how the payment is carried on the books. I suppose their team of crack ex Enron accountants has approved it though. nobody wrote: "Frank F. Matthews" wrote: will not go 11. Interesting that 500 ,million is prepayment for frequent flyer miles. That indicates that AE expects them to stay around but seats will be really hard to find. It won't make a difference to seat availabily. Amex already sends big fat cheques to Delta every month for the purchase of Delta FF miles which Amex then gives to customers for every dollr tehy spend on the card. The $500 million is simply prepayment for the miles AMEX will be giving to customers over the next X period. It would be interesting to know just how long it will take for AMEX to distribute those miles. If Amex negotiated a rate of say 2 cents per mile, that gives them 50*500 000 000 = 25000000000 FF points to hand out. It may take a while before cardholders of AMEX cards spend that much money. |
Thread Tools | |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Delta Air Lines May Drop Preparation For Chapter 11 Filing | nobody | Air travel | 14 | October 28th, 2004 08:22 AM |
Delta Air Lines Prepares Chapter 11 Filing | nobody | Air travel | 8 | October 25th, 2004 06:32 AM |
Delta Air Lines Prepares Chapter 11 Filing | nobody | USA & Canada | 2 | October 25th, 2004 06:15 AM |
Delta Queen Names Nierenberg President! | Ray Goldenberg | Cruises | 0 | July 14th, 2004 04:25 PM |