Originally Posted by
Carl Spackler
You are correct sir, but you've forgotten a very important point. Management is paid primarily in stock and options. While what you state would indeed be in the long term best interests of our airline, it would not be in the best interest of maximum short term stock price. By "throwing billions into the shareholder value bonfire", they are actually transferring money for Delta's future...to their own pockets. That's our dilemma.
Carl
I agree that's why they are doing it. I've always wondered about the nature of a BoD fudiciary. There has to be something to protect the long term investor, otherwise any company could canibalize itself for short term gain.
Look at Honda or Toyota, two brands known for long term quality. Either could destroy/monetize their own long term quality tomorrow, transfer a ton of money to their investors and it would be a year or two before word got out, their brand got tarnished by the customers and by then they could be long gone. Ditto for any company of course.