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Delta to Wall Street: Don't Tell Us How to Run Our Airline

NEW YORK (TheStreet) -- Fresh from hounding JetBlue CEO Dave Barger out of a job because the carrier provided too many luxuries to its coach-fare passengers, some Wall Street analysts have turned their sights on Delta . ( さらに...

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canuck44 20
Love it. Delta basically told the Wall Street leaches they could shove their amateur opinions that are consistently wrong anyway.
s2v8377 15
The only thing worse than low cost carriers for the industry, have to be investment bankers!!!
Your problem with low cost carriers is?
They are a pain in the a**!
That's not an answer. Be specific.
Low cost/low fare carriers are an integral part of the marketplace.
Now, it's your turn. Expound upon your one liner
canuck44 11
One cannot blame Anderson. He is putting down a gaggle of second guessers who have little stake in the game particularly as it relates to the employees and the customers. They universally thought Delta was wrong to buy the refinery, wrong to buy older aircraft to conserve capital and now Delta's expansion to the West Coast and Asia.

When they prove to be wrong we never hear a mea culpa from them only silence.
Chuck Me 3
He is one of the few who can pound his chest and say he's doing well for shareholders.
yep, I'd have kinda thought Jeff Smeisk might have fit that category until he moved all to Chicago and surrounded himself with losers.
Transport in general, Airlines in particular, are not short-term profit makers. Analysts seem to focus always on constant short-term improvements, and over-react when things don't go exactly as the want.

If Delta for some reason does not hit it's growth targets, don't think for a moment it will sit idly by waiting for improvement. For example, Seattle was a bold move, if it pays off in the long-term, shareholders will be happy with their returns.

If you are sitting with investments in Transport, and watch quarter by quarter for double digit growth every time, you are in for a lot of disappointments, and maybe you should not be in that market segment to begin with.
Ken Lane 1
I generally agree with your comment but the fact that more than a couple airlines cannot seem to learn from the history of other airlines and continue to file bankruptcy... well, that's hardly a positive direction.

The legacy carriers still seem to operate like they did when regulated and had virtually a guaranteed revenue stream and less need for actual competition. Now, they nickel and dime passengers for every little detail and still get in trouble.

There must be a reason why a business model like SWA has never filed bankruptcy and continues to thrive with increased business. While unions in the past have been a major issue in the decline of airlines, SWA pilots have been without a contract for three years yet no one is rushing to leave the company. They'll never grow to a position flying half-million-pound-plus birds but they'll never be out of a job, either. Ditto for their FAs.

Personally, I give it five years before another legacy carrier files for bankruptcy again.
Go get 'em Dickie boy!!!!!!! Tell'em to kiss off. You are making a profit.
The idiots on Wall Street are Saprophytes on society.
Complaints about Delta's business practices coming from two companies that had to be bailed out by the government in 2008, or they would have gone broke. What a hoot.
btweston 2
All must cower before the wisdom is people who move money around and magically fill their pockets. Hail Romney!
Chuck Me 2
I'm all for giving analysts the middle finger. But don't be too quick to cheer airline execs like they are experts at how to make money. Until the last couple years, airlines have been terrible investments. They have a good twelve months and suddenly they think they know it all.

I know WS can be too focused on short term. But look long term and you see airlines are a bad place to park your money.
Well, they need to crow while they can and see if they can't reverse that trend of bad investment.
Jeff K 3
Good for Delta! Wall street is destroying America while enriching themselves at our expense.
Wall Street= New World Order!!!!!!!!!!!!!!!!!!!!!!!!!!!
ejjacob 1
Would these be the same analysts that were shunning AMR stock when it dropped to less than $1? The same analysts pushing the new AA stock when it was at $42? And, where is it now.....? They made a good case for contrarians! I think we need more Mr Bargers!
Delta has been successful for a long time without the Bullshit from the Peanut Gallery. Jet Blue is a Diamond in the ruff.
I have never been able to figure out why businesses allow people on Wall Street, who have never worked in the business they profess to know, to dictate how they should run their business. I mean really, would you hire someone with no business experiance in your field to run your business? Well that's basically what they do. They let these people that know nothing about their business tell them what to do. If a company meets their estimates, but it doesn't meet the, "streets" estimate, who's the one that blew it? Does anyone agree with me???
Ken Lane 1
Those in finance can do a task without the blinders that are usually worn by the subject business.... analyze bankruptcies, what led to them and the actions to be taken to prevent another.

As I said in another post, I don't think the legacy carriers have learned their lesson.
I can agree with some of that but how come they didn't prevent their own bankruptcies? To boot, those in finance are grouping all industries together in looking to maximize profits. Bottom lines are the same for any company but it is expertise in the individual field that get a company there.
Ken Lane 1
Are you referring to the difficulties in the securities market a few years ago?

That started with derivatives based on bad mortgages which were compiled by Freddie Mac. Bush wanted to change how Freddie Mac could operate and put limitations on a quasi-government operation. The Democrats fought him; in particular, Barney Frank; who just happen to have a boyfriend who was working for Freddie Mac.
Yeah, but they still took a bath in their own field.
Ken Lane 1
Any investor would when the represented product had badly misrepresented volatile risk.
True, but they should really be trying to mind their own business rather than telling everybody else how to mind theirs. Not all businesses are short term. You and me both know the airline industry is capital intensive and results are very long term, hence cannot turn on a dime. Short term expectations are not valid for an industry of this type; trends yes but they should still be part of a plan. I personally think there is a special place in hell reserved for short sighted people like this.
Ken Lane 1
That could also apply to those who try to manage like they always have rather than adapt to the market place and meet the requirements to compete.

It will be sometime before I give up this thinking... I don't think the legacy carriers have learned their lesson.
That may not be in some quarters but they are learning. I am in agreement with you though that not all have leaned yet. I think we know who they are without calling names.
A classic case of the "tail shaking the dog." The analysts want to increase their profits, so they make comments disguised as "questions" to try to force companies, Delta in this case, to follow the line they want to see to increase their short-term profits. Their attitude is one of "profits now, and tomorrow can take care of itself." Their whole operating philosophy is short-sighted and narrow-minded. Unfortunately, too many unknowledgeable small investors listen to them and run scared to remove their money from the company being criticized. This makes the analysts' comments a self-fulfilling prophecy, and damages the company in the long run. Good for Delta in standing up to these Wall Street churls.
A classic example is right here. They had just finished castigating Jet Blue, all be cause they were giving too many benefits for coach pax. This country has been on a short term philosophy since the early 80's. Tese are 2 companies that are going back to a longer term outlook on things and making good at it.
Wall Street want to run the world. The company I work for also told Wall Street to Shove It. They say that they pay their employees too much and it's hurting the economy. I work for Costco Wholesale.
I know this has nothing to do with aviation. Just stating that Wall Street like to screw us.

The Oil Speculators are the reason for High Fuel Prices in both Aviation and Consumer Fuel Prices.
Oil speculation should be a criminal offense!
Ken Lane 1
So, you want to wipe out the entire futures market?
Just the oil end of it. It serves no real purpose other than inflating the price of fuel. All it does is create middle men, who take their cut, and screw everyone else.
Futures are one thing and probably necessary but should only be allowed for people with actual product to sell and those actually taking delivery on same. This should be the same on any commodity.
Wall Street needs to Fukuoka Offutt (take the first three letters of each name)
Delta said Fukuoka Oshawa! (Read the IATA codes for those airports.) :D
Delta seems to be doing just great without Wall Street.


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