Will Delta Sell AirElite?

Not numerous men and women outdoors of the airline market know this, but Delta Airline owns and operates a lucrative division of private jets. Delta AirElite, as it is recognized, is the single bright spot in an otherwise dark enterprise environment for this U.S. legacy carrier. Some are speculating that Delta must sell its AirElite business to raise funds and turn around the carrier, but I have yet another much more radical take on issues that I think ought to be considered as an alternative. Established in 1984, Delta AirElite has been steadily growing and creating cash for Delta. Even though the airline part of the business is quickly and continually hemorrhaging money, AirElite continues to make cash and grow. Indeed, with a fleet of sought following organization jets in its portfolio such as the Challenger 300, Gulfstream IV-SP, and Learjet 31A, AirElite is an desirable company for any possible suitor. Truly, if Delta were to sell AirElite it would only slow the bleeding for Delta, not stop it. With debt totals exceeding $20 billion, a sale of AirElite would probably only fetch the carrier a few hundred million dollars, if that. Last year, Delta sold off its Delta Connection carrier, Atlantic Southeast Airlines (ASA), for $425 million money to Skywest Airlines. The sale was perceived by business analysts as a desperate 1 as ASA was valued to be worth in between $700-800 million dollars. The sale took spot just just before the airline filed for bankruptcy in September 2005, and had no effect in stemming the filing. So, what should Delta do? In my opinion, get out of the airline organization altogether. Thats appropriate, rather of laying off thousands of further workers and requiring steep give backs in employee wages, Delta might consider promoting all of its assets off piece by piece to the competition. This would specially make sense as Deltas restructuring is dependent on steady fuel rates and, at this point, airlines can expect to spend even more for fuel in 2006 than they did last year. Kiss that recovery program goodbye! http://www.venturigroup.it/esp/ After the airline organization is sold, AirElite ought to be all that is left of Delta. The new business can thrive as the company aviation industry is booming. The writing is on the wall for the airlines as additional consolidation, retrenchment, and big time value pressure will remain. Indeed, after Virgin America gets official government approval to fly, its fleet of 105 modern day Airbus jets will have much far more appeal to passengers than Deltas aging fleet. One particular far more cause for Delta to get out of the commercial airline business now. Is my recommendation radical? Yes, it is. Delta, even so, is in too significantly of a hole to ever recover. Much better to realize that now when their assets have some value than to wait till what they have slips away forever. By that time, even AirElite could get dragged down and suffer.