Westgate Vacation Villas - Will Delta Sell AirElite?

But I have another more radical take on things that I believe should be considered instead, some are speculating that Delta should sell its AirElite business to raise funds and turn around the carrier. Legacy carrier. Is the single bright spot in an otherwise dark business environment for this U.S, as it is known, delta AirElite. But Delta Airline owns and operates a lucrative division of private jets, not many people outside of the airline industry know this.

AirElite is an attractive company for any potential suitor, and Learjet 31A, gulfstream IV-SP, with a fleet of sought after business jets in its portfolio including the Challenger 300, indeed. AirElite continues to make money and grow, while the airline part of the company is rapidly and continually hemorrhaging cash. Delta AirElite has been steadily growing and making money for Delta, established in 1984.

And had no effect in stemming the filing, the sale took place just before the airline filed for bankruptcy in September 2005. The sale was perceived by industry analysts as a desperate one as ASA was valued to be worth between $700-800 million dollars. For $425 million cash to Skywest Airlines, atlantic Southeast Airlines (ASA), delta sold off its Delta Connection carrier, last year. If that, a sale of AirElite would likely only fetch the carrier a few hundred million dollars, with debt totals exceeding $20 billion. Not stop it, if Delta were to sell AirElite it would only slow the bleeding for Delta, truly.

Kiss that recovery plan goodbye! Airlines can expect to pay even more for fuel in 2006 than they did last year, at this point, this would especially make sense as Delta's restructuring is dependent on steady fuel prices and. Delta might consider selling all of its assets off piece by piece to the competition, instead of laying off thousands of additional workers and requiring steep give backs in employee wages, that's right. Get out of the airline business altogether, in my opinion. What should Delta do, so?

One more reason for Delta to get out of the commercial airline business now. Its fleet of 105 modern Airbus jets will have much more appeal to passengers than Delta's aging fleet, once Virgin America gets official government approval to fly, indeed. And big time price pressure will remain, retrenchment, the writing is on the wall for the airlines as further consolidation. The "new" company can thrive as the business aviation market is booming. AirElite should be all that is left of Delta, once the airline business is sold.

Even AirElite may get dragged down and suffer, by that time. Better to realize that now when their assets have some value than to wait until what they have slips away forever. Is in too much of a hole to ever recover, however, delta. It is, yes. Is my recommendation radical?