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Delta eyes a stake in India's Jet Airways

Delta eyes a stake in India's Jet Airways

Old Oct 29, 18, 9:44 pm
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Delta eyes a stake in India's Jet Airways

Even as the Tata group is believed to have intensified negotiations for a possible purchase of a stake in troubled airline Jet Airways, the carrier may find a white knight in Delta Air Lines, three people familiar with the development told FE. Although the Atlanta-based airline declined to comment on what it termed “speculation regarding future investments”, it is understood to have made overtures to Jet’s promoter Naresh Goyal. Goyal holds 51% in Jet Airways.

Delta, persons in the know, said would also buy the 24% stake in Jet held by Etihad Airlines. The UAE-based airline bought a minority stake in Jet Airways in 2012 for about $379 million, the first-ever airline stake buy after the government had allowed foreign airlines to buy up to 49% in domestic carriers.
This might be the most structurally troubled airline Delta would invest in. GOL I supposed was troubled, but Jet is another level...

More: https://www.financialexpress.com/ind...-2019/1366047/
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Old Oct 29, 18, 9:47 pm
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Why can't DL please partner with and purchase stakes in *good* airlines, just for something different that might well give better returns to stockholders as well as being good for customers? Some diversification could be beneficial here. If an airline is truly troubled, buying anything less than a controlling interest seems like a self defeating prophecy.

BTW, I understand that AZ would like some additional investors about now, and I have a bridge.....
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Old Oct 29, 18, 9:49 pm
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Maybe they should put their money away for a rainy day when Delta, ya know the airline they are supposed to be running, needs a cash injection instead of putting it in a third world airline.
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Old Oct 29, 18, 9:50 pm
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Or DL could buy another oil refinery.....
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Old Oct 29, 18, 9:58 pm
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Originally Posted by readywhenyouare View Post
Maybe they should put their money away for a rainy day when Delta, ya know the airline they are supposed to be running, needs a cash injection instead of putting it in a third world airline.
Let me just make sure I am understanding this.
You are 1) saying Delta management isn't putting the company into position for the future? 2) Jet airways is a third world airline?

both are wrong but i just want to make sure that is what you are saying.

Originally Posted by MSPeconomist View Post
Why can't DL please partner with and purchase stakes in *good* airlines, just for something different that might well give better returns to stockholders as well as being good for customers? Some diversification could be beneficial here. If an airline is truly troubled, buying anything less than a controlling interest seems like a self defeating prophecy.

BTW, I understand that AZ would like some additional investors about now, and I have a bridge.....
What is a "good" partner for Delta in India then? Air India? one of the LCCs?
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Old Oct 29, 18, 10:24 pm
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Originally Posted by Dawgfan6291 View Post
Let me just make sure I am understanding this.
You are 1) saying Delta management isn't putting the company into position for the future? 2) Jet airways is a third world airline?

both are wrong but i just want to make sure that is what you are saying.


What is a "good" partner for Delta in India then? Air India? one of the LCCs?
Why isn't a codeshare good enough? Why does Delta have to invest in the airline? What's next, hotels? Office buildings? Welcome to the new Pan Am...

And yes India is a very volatile region. Take off the rose colored glasses and you might understand that Delta doesn't always make good decisions.
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Old Oct 29, 18, 10:34 pm
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Originally Posted by readywhenyouare View Post


Why isn't a codeshare good enough?

because codeshares are vastly different then anti-trust immunity, joint ventures and ownership?

Originally Posted by readywhenyouare View Post
Why does Delta have to invest in the airline?
control. Keeps other airlines from coming in and stealing a partner. several reasons that Delta management have discussed probably 35 thousand times.

Originally Posted by readywhenyouare View Post
What's next, hotels?
They already own one so.....

Originally Posted by readywhenyouare View Post
Office buildings?
What airline in the US doesn't own office buildings of some kind?

Originally Posted by readywhenyouare View Post
Welcome to the new Pan Am...
You do know that American and United both have investments into other airlines as well right? Guess all three are doomed.


Originally Posted by readywhenyouare View Post
And yes India is a very volatile region. Take off the rose colored glasses and you might understand that Delta doesn't always make good decisions.
Originally Posted by readywhenyouare View Post
considering we have no idea on what the terms of the possible deal is, you simply can't call it a bad decision.
but saying that, I will trust the guys making billions of dollars instead of a person who constantly complains about Delta on here basically because they have ordered from Airbus.

but you are someone correct that Delta has made bad choices, a deal with Jet for the right price isn't one of those choices however.
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Old Oct 30, 18, 12:26 am
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India has made some major strides in the past decade or so, but msot would consider it a third-world country. That doesn't mean every city or every area in India is backwards... but if India is considered a third-world country then Jet airways could be called a third-world airline.

Well run airlines aren't easy to invest in, and probably wouldn't offer shares at a long term competitive price. So I don't see this as an obvious bad move by Delta, but I do share the concern that it carries some risk and is money spent away from the core business.
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Old Oct 30, 18, 6:02 am
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Just flew Jet in business as a DL codeshare a week ago, YYZ-AMS & AMS-YYZ. Review: seats-lieflat good, food-fair, crew-fair (not friendly & not great service), amenity kit-poor, movie selection-poor. If not for a price in miles that was half the cost of the same flight out of DTW I would not fly Jet (I drove four hours to YYZ for the flight).
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Old Oct 30, 18, 6:22 am
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Originally Posted by readywhenyouare View Post


Why isn't a codeshare good enough? Why does Delta have to invest in the airline? What's next, hotels? Office buildings? Welcome to the new Pan Am...

And yes India is a very volatile region. Take off the rose colored glasses and you might understand that Delta doesn't always make good decisions.
Mod Hat Off

There's a full slide chart in the December '17 Investor Day Presentation that shows how Delta is using JVs and codeshares to gain #1 , #2 or #3 positions in the highest-revenue (Top 10) USA-international markets. It's worth time to find. It really looks like there's a strategy!

https://ir.delta.com/news-and-events...s/default.aspx
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Old Oct 30, 18, 6:28 am
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Originally Posted by MSPeconomist View Post
Why can't DL please partner with and purchase stakes in *good* airlines, just for something different that might well give better returns to stockholders as well as being good for customers? Some diversification could be beneficial here. If an airline is truly troubled, buying anything less than a controlling interest seems like a self defeating prophecy.

BTW, I understand that AZ would like some additional investors about now, and I have a bridge.....
As an investor, I would be annoyed if Delta uses funds to invest in an airline based on traveler comfort and not based on potential return.
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Old Oct 30, 18, 6:54 am
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Originally Posted by TBD View Post
As an investor, I would be annoyed if Delta uses funds to invest in an airline based on traveler comfort and not based on potential return.
I mentioned better returns for stockholders (note not stakeholders) first. I'm also advocating diversification, which is generally good for stockholders, although some have already diversified their portfolios.
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Old Oct 30, 18, 9:40 am
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Originally Posted by Dawgfan6291 View Post
but saying that, I will trust the guys making billions of dollars instead of a person who constantly complains about Delta on here basically
Yep, certainly businesses can and have made bad decisions, even Delta, but if those are the two choices I'm willing to play the odds.

Originally Posted by Dawgfan6291 View Post
because they have ordered from Airbus.
also don't forget that Richard Anderson is the anti-Christ and Ed Bastian is his hellspawn illegitimate love child
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Old Oct 30, 18, 1:10 pm
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Having seen the spaghetti sandwich bureaucracy involved with even the most simple project in India, I can only imagine the legion of lawyers that would be required (as well as political palms greased) to turn such a plan into reality.
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Old Oct 30, 18, 1:19 pm
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Originally Posted by 3Cforme View Post
Mod Hat Off

There's a full slide chart in the December '17 Investor Day Presentation that shows how Delta is using JVs and codeshares to gain #1 , #2 or #3 positions in the highest-revenue (Top 10) USA-international markets. It's worth time to find. It really looks like there's a strategy!

https://ir.delta.com/news-and-events...s/default.aspx
Page 28 for those who don't want to dig like I did
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