Originally Posted by
ERflyer
They would be better off raising cash by selling more common stock like Southwest did. Increasing the number of shares of common stock dilutes the value of management’s stock options however. Can’t have that happen.
Mostly agree. It depends on the terms right now. Overall debt is insanely and radically unsustainably cheap on the open market so I'd tap that hard first. Then take all 5B in government cheese loans that are below the already low market. Then flood the market with shares to raise another 5-10B then do a reverse split to keep the psychological price similar.
When we (as an industry) do return to our former glory, any debt we could incur right now can be paid back in a few years. As for the EPS bonus mongers, they'll have to defer their second and third private islands for a little while. Boo hoo.