webecheck

If they want to sell them, then yes.

Holding treasury shares also can be a defensive move by the company itself. It prevents hedgies, or hedgy allies, from accumulating too many. Some companies buyback to hold enough voting rights to prevent being fleeced by unscrupulous members of the BoD.

My first reaction to the buyback was like everyone else. However, idle cash is of no use if opportunities exist to generate wealth for the company, or like the above, a defensive position that may in the future benefit all employees. The verdict will be out when we see what they do with the treasury shares. I think it was Kirby that said we have enough iron to generate the seat miles we desire already, so i'd agree that spending money on extra iron isn't the smartest decision. If in a year or 2 all these undertakings actually result in movement towards the desired effect (1.5% margin premium to delta by 2020), then the company will be more financially sound, and assuming the PE remains the same the stock price will be higher...5 billion spent on treasury shares may be worth 10 or more. Just spitballing numbers but you get the idea. Or course, you could also use the cash to pay down debt instead, or recapitalize if operating costs are high....lots of options, this is the CFO's job. I think the fleet is fairly young and mgmt is saying we have enough iron already. Debt is cheap right now, so why pay it off. Its all an ROI comparison game.

So in 2 years if mgmt is able to see that the initiatives are working and we have more cash available, courtesy of the buyback...well that could turn into a huge win for all of us. Given the predicted recession, uncertainty about post election initiatives, what sense does it make to buy 700s just because they were cheap if we already have the iron to grow ASM?

We just don't have all the answers, but ask yourself, what will be become of Oscar's legacy is he reverses course on all the things that have shown to be smart moves so far....ie, taking RJ flying back being the most important to us. Mgmt said in the last CC or the one before it that bringing Express flying back to mainline has been a smart move for the bottom line. Can only speculate so much.

Also heard some rumors about Republic today. Guess they have about 40 CS300s on order. Havent looked into it, may some other Nostradamus can do a little homework.

Last parting shot, if its good for the shareholders, then its good for our PS checks! So come contract time, ZERO concessions to PS.