Jetblue’s silence is deafening
03-15-2020 | 08:38 AM
#42
On Reserve
Joined: May 2017
Posts: 59
Likes: 0
Why not 3 billion, or 4 or 5 or 6 billion. Come on, no company our size should be sitting on a ton of cash as of 3 weeks ago. This is completely unforeseen and unprecedented in the history of commercial aviation. I don’t like what they did with the money, but saying we should have kept it in the bank make no sense.
03-15-2020 | 08:44 AM
#43
The REAL Bluedriver
Joined: Sep 2011
Posts: 6,935
Likes: 0
From: Airbus Capt
Why not 3 billion, or 4 or 5 or 6 billion. Come on, no company our size should be sitting on a ton of cash as of 3 weeks ago. This is completely unforeseen and unprecedented in the history of commercial aviation. I don’t like what they did with the money, but saying we should have kept it in the bank make no sense.
As it is, this airline could absolutely have used $2 billion in the bank, and what they spent the money on did NOT benefit the Bluemembers, but the Bluemembers will suffer from it's absence.
And $2 billion, because that's what they had with what they have now + what they wasted. They didn't have $5-6 billion, they had (or would have had in total) $2 billion+.
In fact, just a few months ago they mortgaged PREVIOUSLY PAID OFF aircraft to the tune of approximately $500 million, to buy back more stock (at $20+ per share).
You really gonna take the position that was a good use of money?
03-15-2020 | 08:51 AM
#45
Gets Weekends Off
Joined: Aug 2005
Posts: 324
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There was more than one reason for the stock buybacks. Among other things, it's a financial defense against a hostile takeover. It reduces cash and reduces shares outstanding, both of which make it more difficult to execute a leveraged buyout.
03-15-2020 | 09:05 AM
#46
Gets Weekends Off
Joined: Jan 2019
Posts: 377
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But it's main purpose was to alter the metrics, juice EPS and hit executive bonus targets.
03-15-2020 | 09:20 AM
#48
Line Holder
Joined: Oct 2012
Posts: 251
Likes: 0
From: e145 fo
03-15-2020 | 09:29 AM
#49
Banned
Joined: Jun 2019
Posts: 442
Likes: 0
Not really. Basically the same as our non union employees. This was a perfect opportunity to restore PS. We had them on the ropes. We won’t have any profit this year (or likely next), so it costs nothing right now when times are bad. We should have not let this opportunity go to waste and restored the previous PS formula/gotten rid of the cliff. Would have also been a perfect opportunity to bring back UTS.
03-15-2020 | 09:33 AM
#50
Gets Weekends Off
Joined: Feb 2011
Posts: 1,327
Likes: 0
Not really. Basically the same as our non union employees. This was a perfect opportunity to restore PS. We had them on the ropes. We won’t have any profit this year (or likely next), so it costs nothing right now when times are bad. We should have not let this opportunity go to waste and restored the previous PS formula/gotten rid of the cliff. Would have also been a perfect opportunity to bring back UTS.
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