Originally Posted by
stbloc
Parker was buying back his stock at the highs. Meanwhile AA has more debt the Delta and United combined and negative cashflow. He should have been paying down debt vs lining his pocketbook. Now this misstep may cause another bankruptcy
Both United and Delta also bought back stock at the highs. In fact, 95% of all corporate buybacks are bought at highs and that cash forever lost.
Pay back debt? No way. Do you know how much money per month that $12b in retired debt would've saved? (the answer is in our quarterly report)
This happens every decade or so. Large world events that put carriers without cash and the means to raise it under. If Doug was truly playing the long game he would've kept that cash in a vault and waited patiently. Then go on a shopping spree.
This is what SWA did post 9/11, catapulted by their fuel hedges. It's what warren buffet has done over the past few years...sitting on $130b in cash and taking heat for it. He knew this was coming, it always does.