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

RE: Common share trading today

[Mongoose11]

I listened to the conference call. Looking forward the good is 1) better DATS, 2) additional cost savings, 3) lower capex. The bad is 1) lower defence revenue in Q-1, 2) tanking resource sector, 3) the Chilean purchase seems to be a dud.

At this point there is still room for optimism but I would rather be getting in at current $2.00/share levels than where I am now. I'll be watching the demand for shares at this level. If it doesn't pick up I'll become more pessimistic. If the debt doesn't drop notably in Q-1'14 I may have to bail. This is still unfortunately a company with a debt monkey on its back that only really benefits the debt holders (i.e. Clairvest) but I do finally detect an acknowledgement of that fact by management at least. We'll see in Q-1 if I'm dreaming but I'm hoping they'll start the serious debt reduction therapy that is so necessary. The interest expense is eating them alive.