United Airlines poised to slash payroll costs
#151
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Companies were also spending billions on new airport facilities, airplanes and significant pay increases over this same period so to claim that the buybacks were done at the expense of properly running a company is slightly disingenuous.
#152
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Joined APC: Feb 2020
Posts: 98
Again, read this and like everything, what's normal gets taken to extreme, like AA literally borrowing money to buy stock, but when profits are rolling in, does anyone really think a company can just keep like $20B in the bank as cash and not be a target of takeover by hostile forces which ultimately use your own money to fund the takeover?
Companies were also spending billions on new airport facilities, airplanes and significant pay increases over this same period so to claim that the buybacks were done at the expense of properly running a company is slightly disingenuous.
Companies were also spending billions on new airport facilities, airplanes and significant pay increases over this same period so to claim that the buybacks were done at the expense of properly running a company is slightly disingenuous.
#153
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Joined APC: Mar 2020
Posts: 192
#154
Line Holder
Joined APC: Feb 2020
Posts: 98
oh they have learned. It is we who are the fools. Now let’s add the prevalence of high-speed computerized trading to the mix and this “unfortunate” period of volatility turning on every headline begins to look very different as well.
#155
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Joined APC: May 2014
Position: Tom’s Whipping boy.
Posts: 1,182
Understood, which is why your office is shared, dirty, and those executive lunches you enjoy are on your lap, with plastic drinking containers, or sippy cups and no wine....as opposed to those who have been making theses kinds of risk management plans for decades.
#156
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Posts: 540
#157
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Joined APC: Mar 2018
Posts: 1,358
We’re all in survival mode right now. As soon as the recovery starts we will all be trying to kill each other again and trying to use other airline’s weakness to our advantage. This is a brutal business with thin margins.
#158
Gets Weekends Off
Joined APC: Aug 2016
Posts: 147
Again, read this and like everything, what's normal gets taken to extreme, like AA literally borrowing money to buy stock, but when profits are rolling in, does anyone really think a company can just keep like $20B in the bank as cash and not be a target of takeover by hostile forces which ultimately use your own money to fund the takeover?
Companies were also spending billions on new airport facilities, airplanes and significant pay increases over this same period so to claim that the buybacks were done at the expense of properly running a company is slightly disingenuous.
Companies were also spending billions on new airport facilities, airplanes and significant pay increases over this same period so to claim that the buybacks were done at the expense of properly running a company is slightly disingenuous.
However, UA had 8.7 Billion in stock buybacks over the past six years. I'm not a finance expert, but couldn't that capital been better utilized elsewhere? If not just sitting in the bank, how about paying off aircraft? Or changing aircraft leases to outright purchases?
#159
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Joined APC: Mar 2018
Posts: 1,358
Understood that having a huge cash pile comes with it's own issues.
However, UA had 8.7 Billion in stock buybacks over the past six years. I'm not a finance expert, but couldn't that capital been better utilized elsewhere? If not just sitting in the bank, how about paying off aircraft? Or changing aircraft leases to outright purchases?
However, UA had 8.7 Billion in stock buybacks over the past six years. I'm not a finance expert, but couldn't that capital been better utilized elsewhere? If not just sitting in the bank, how about paying off aircraft? Or changing aircraft leases to outright purchases?
The name of the game is maximizing shareholder wealth, not making sound long term business decisions.
#160
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Joined APC: Dec 2009
Position: Narrow/Left Wide/Right
Posts: 3,655
When Delta went BK back in 2005, some of the largest "creditors" were Disney and Coke, not because of bills incurred but because those companies financed aircraft and leased the equip back to Delta in order to enjoy the tax depreciations credits.
Like poster above said, BOD of companies are supposed to maximize shareholder value, usually that corresponds to a long term outlook, but sometimes they focus too much on the next quarter. Share price will respond to EPS, dividend increases, relative competitive advantages, financial stability of a company, and of course long term prospects of the business plan.
If your CEO and get fired over the next few quarters because you were too long term focused then you lose as well.
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