DISCOVERY AIR INC 8.375 PCT DEBS T.DA.DB.A

RE: The question is.....

[Mongoose11]

I just listened to the Q-3 conference call. My sense is that there are a lot of problems such as over expansion, overpaying for new subsidiaries that "aren't up to snuff", too much capacity, bloated management etc.

The new management seems to be aware of the issues and I get the feeling that there's a lot of room for improved results both in right sizing the capacity and trimming fat. The issue now is do they have the balls to cut fat and get the capital deployed way better and more profitably.

If I don't see margins going up and debt going down in Q-4 I'm seriously thinking of bailing on this one.