Will Delta Sell AirElite?

Will Delta Sell AirElite? Not many habitancy surface of the airline manufactures know this, but Delta Airline owns and operates a lucrative branch of hidden jets. Delta AirElite, as it is known, is the particular thoughprovoking spot in an otherwise dark business environment for this U.S. Legacy carrier. Some are speculating that Delta should sell its AirElite business to raise funds and turn around the carrier, but I have an additional one more radical take on things that I believe should be carefully instead.

Established in 1984, Delta AirElite has been steadily growing and making money for Delta. While the airline part of the business is rapidly and continually hemorrhaging cash, AirElite continues to make money and grow. Indeed, with a fleet of sought after business jets in its folder together with the Challenger 300, Gulfstream Iv-Sp, and Learjet 31A, AirElite is an thoughprovoking business for any potential suitor. Truly, if Delta were to sell AirElite it would only slow the bleeding for Delta, not stop it. With debt totals exceeding billion, a sale of AirElite would likely 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 5 million cash to Skywest Airlines. The sale was perceived by manufactures analysts as a desperate one as Asa was valued to be worth in the middle of 0-800 million dollars. The sale took place just before the airline filed for bankruptcy in September 2005, and had no consequent in stemming the filing. So, what should Delta do? In my opinion, get out of the airline business altogether. That's right, instead of laying off thousands of added workers and requiring steep give backs in worker wages, Delta might consider selling all of its assets off piece by piece to the competition. This would especially make sense as Delta's restructuring is dependent on steady fuel prices and, at this point, airlines can expect to pay even more for fuel in 2006 than they did last year. Kiss that recovery plan goodbye! Once the airline business is sold, AirElite should be all that is left of Delta. The "new" business can thrive as the business aviation store is booming. The writing is on the wall for the airlines as added consolidation, retrenchment, and big time price pressure will remain. Indeed, once Virgin America gets official government approval to fly, its fleet of 105 contemporary Airbus jets will have much more appeal to passengers than Delta's aging fleet. One more guess for Delta to get out of the industrial airline business now. Is my recommendation radical? Yes, it is. Delta, however, is in too much of a hole to ever recover. Great to perceive that now when their assets have some value than to wait until what they have slips away forever. By that time, even AirElite may get dragged down and suffer. Will Delta Sell AirElite?