=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2007/03/27/financial/= f071139D07.DTL --------------------------------------------------------------------- Tuesday, March 27, 2007 (AP) Delta Plans More Asset Sales By HARRY R. WEBER, AP Business Writer (03-27) 10:31 PDT ATLANTA (AP) -- Delta Air Lines Inc. expects to emerge from bankruptcy protection April = 30 with an eye on improving customer service and selling more assets to build shareholder value, it said Tuesday, raising the possibility it could shed feeder carrier Comair. While the nation's third-biggest airline did not say in documents prepar= ed for an investor conference what assets it plans to sell, Chief Financial Officer Ed Bastian suggested that Delta subsidiary Comair Inc. could be a target. "We will, once we're out of bankruptcy, look at whether owning that business makes a lot of sense," Bastian said at the investor conference. During a teleconference later with reporters, Bastian elaborated that Atlanta-based Delta's effort to maximize returns for shareholders may mean "spinning off certain assets, such as Comair." Erlanger, Ky.-based Comair is a regional carrier that provides connecting service for Delta. The investor documents, which Delta filed with the Securities and Exchan= ge Commission, suggested Delta may have moved up the date of its planned emergence from Chapter 11. It had said in a statement March 20 it expected to emerge from bankruptcy in early May. Bastian told reporters that early May is when Delta's new stock is expected to be listed on an exchange. Delta sought bankruptcy protection from creditors in September 2005. Delta is expected to announce later this week who will serve on its post-bankruptcy board of directors. The board will pick a new chief executive officer to replace Gerald Grinstein, who has said he plans to step down sometime after Delta exits Chapter 11. Grinstein told investors at the conference that he hopes the new 11-memb= er board is announced by Friday. He said the official committee of unsecured creditors in Delta's bankruptcy case will choose the board. At least three of its members will be current board members. Grinstein said he would stay on the board until his successor as CEO is named. He said his strong preference for a successor is an internal candidate. Bastian and Chief Operating Officer James Whitehurst are considered by many to be leading internal candidates for the top job. "My persuasive powers will be brought to bear to see if we can make an internal selection and do it quickly," Grinstein said. "At that point, my role has ended." Bastian told reporters Tuesday he expects the new board will bring fresh thinking to the table and will ultimately make its own decision about the next CEO, but he believes "Jerry's years of experience in this industry will certainly be well respected and regarded by the board." Grinstein also addressed questions about industry consolidation and where Delta factors in. Grinstein said he doesn't think it is the right time for major airlines = to merge. "I do think that is going to be deferred for several years, three or four years," said Grinstein, whose company earlier this year successfully fought off a hostile bid by Tempe, Ariz.-based US Airways Group Inc. to buy Delta. "Do I think six network carriers are too many? No, I don't." As for Delta and its role in possible consolidation, Grinstein said, "Frankly, I see its future more as an acquirer rather than being acquired." Grinstein said it's not out of the question that a major carrier could b= uy a low-cost carrier. Grinstein said his opinion about consolidation among major carriers could change if another carrier makes a move. "If another merger were to take place, it would have a significant forci= ng impact on Delta, and Delta would have to look at its options," Grinstein said. But he said putting big airlines together is easier said than done ̵= 2; especially blending the cultures of different companies. "You have to really look at whether you want to take that on, and I have= a high degree of skepticism," Grinstein said. Delta said its objectives for this year, in addition to exiting bankruptcy, include achieving the financial commitments in its transformation plan, boosting margins and building cash for long-term strength. It will continue to expand its international service, with a special foc= us on its service from New York City's John F. Kennedy International Airport. Delta said in the investor documents it also wants to improve baggage handling, streamline and enhance customer service and improve the operational performance of the feeder carriers that service its Delta Connection flights. The company's plan to "unlock shareholder value" includes building on its maintenance repair and overhaul business and "further monetization of assets," a phrase that refers to the sale of assets. Bastian said Delta is projecting a pretax profit, excluding special and reorganization items, of $816 million in 2007. Delta is forecasting a narrower loss of $25 million to $50 million in the first quarter, which ends Saturday. He said Delta expects to get a positive vote of creditors on the airline's reorganization plan, which he said should be approved by the bankruptcy court after a hearing April 25. ___ On the Net: Delta Air Lines Inc.: www.delta.com ----------------------------------------------------------= ------------ Copyright 2007 AP <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".