Originally Posted by
gloopy
The rapid 6B in "shareholder return" during a time when we still have desperate needs in internal investment as well as an open pilot contract. They put it in a warehouse and lit it on fire just so we can't have it. They just wasted 6 billion dollars, largely on peak value buybacks that do nothing for a company long term, out Leo-ing Leo himself.
In the industry most needing to save for a rainy day, and it rains hard from time to time, this will be our Waterloo. Biggest mistake this management team has made, and a huge slap in the face of all employees especially the pilots as we're trying to decide on a massively concessionary TA.
This is solely for debate purposes.
Leave the contract out of it for a second. It is YOUR opinion that we need more "internal investment", so let's roll with that first. Are you referring to employees pay and bennies? We are -allegedly- (I am having trouble keeping up with rampers' and FA pay) the highest paid in the industry, or at least very close to the top. What makes you think that the company needs to invest more in that area? Or are you talking about CAPEX and facilities?
Buybacks are to placate investors. They own the company. You and I just work here. When they see 25% of the profits being paid in bonus monies, they are thinking "that's more than enough, where's my ROI?" True. DAL has been printing money this year and last year. Why do you think you and I are more "entitled" to that than the owners? The share buybacks are not nearly as nefarious as some are making them out to be. There's plenty of money to go around, and we'll get our share, but to complain about the return to shareholders is nuts.
Waterloo has been bypassed by having low debt. It's gonna be interesting to watch the industry in the next economic downturn. I'll take $5B in debt over $20B in debt all day long.