United Airlines poised to slash payroll costs
#231
Gets Weekends Off
Joined APC: Feb 2008
Posts: 19,273
I doubt your fixed cost to revenue model is anything like a airline. I also doubt you have used the equity markets to raise capital.
#232
Maybe send you TO school to learn the history of what happens to companies, particularly airlines, sitting on top of cash with little debt.
Don’t you have some side hustle making 30k/month that’s a better use of your time since you couldn’t hack it even getting TO the majors?
Don’t you have some side hustle making 30k/month that’s a better use of your time since you couldn’t hack it even getting TO the majors?
#233
Gets Weekends Off
Joined APC: Feb 2008
Posts: 19,273
I don't think people understand who "Wall Street" is. It's us. Anyone with a stock mutual fund to include a 401(k). If our investment does not do well, we take it somewhere else (change funds). If investors do not see a respectable ROI with an airline they will take their money elsewhere resulting in an increase in the cost of capital.
Attacking stock buybacks is a populist red herring.
Attacking stock buybacks is a populist red herring.
#235
#236
Gets Weekends Off
Joined APC: Oct 2015
Posts: 751
There are four major airlines. The US government will not let a corporate raider shell out a company that makes up 25% of the market. I hate the phrase, but they are too big to fail.
TWA and Icahn are a bad example. TWA was nowhere near the financial position of the present day big four.
The whole point about the buybacks is that there was an opportunity cost to them. They could have used that for a rainy day (or to improve employee compensation). They chose the buybacks. You can’t deny they chose wrongly given the present situation.
Airline profit margin is just too thin when bad times come along as they inevitably do.
TWA and Icahn are a bad example. TWA was nowhere near the financial position of the present day big four.
The whole point about the buybacks is that there was an opportunity cost to them. They could have used that for a rainy day (or to improve employee compensation). They chose the buybacks. You can’t deny they chose wrongly given the present situation.
Airline profit margin is just too thin when bad times come along as they inevitably do.
#237
Gets Weekends Off
Joined APC: Feb 2013
Position: 737/FO
Posts: 195
You’re either a scared little kid or a troll. Either way, I do not and will not respect any person of your ilk who continuously opens their trap to spew stupidity or negativity. You’re not the only one on here with this affliction and it’s too bad because there is a great deal of constructive dialogue and useful information to be gleaned here.
Unfortunately I have to sift through yours and others infantile playground arguments to find it. Go clog up guard!
#238
Gets Weekends Off
Joined APC: Oct 2009
Posts: 741
Did the hedge funds, or any other stock owner, make any of this money? No.
How much did they invest in the company? (Unless they, or any other stockholder, bought their shares directly from the company)....ZERO.
They are merely trading in stock as the price shuttles up or down. "They" haven't "made" a damn thing in regards the company they now own a slice of. No purchase of any assets have been made from their buying of stock.
From the companies operational and fiscal performance standpoint, what the stock price does after the initial issuance of a share of stock is immaterial.
As owners, a strong argument can be made that this extra should be paid to them. I don't really disagree with that. However, that's not how we have set this up. The closest we come to it is when a company pays dividends. It is a fraction of what the profits, of the magnitude we are talking, really are. Plus, if your money is in an "investment" firm, you don't get the cash anyway.
In short, profits are not distributed to the owners but rather used in whatever fashion a small group sees fit. Which may include stock buybacks as a form of stock price manipulation.
Ok..I have rambled enough. One thing I have noticed on this message board (the only one I visit) is that many posts come across as shallow. I suspect that is so because it takes too much space to add more depth and all sorts of information that is relevant, plus formative philosophies regarding said information. I certainly know it applies to most of what I post. I try to keep that in mind when I read what others post so as to soften my judgements. My success in that varies.
Stay safe.
#239
Gets Weekends Off
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,160
There are four major airlines. The US government will not let a corporate raider shell out a company that makes up 25% of the market. I hate the phrase, but they are too big to fail.
TWA and Icahn are a bad example. TWA was nowhere near the financial position of the present day big four.
The whole point about the buybacks is that there was an opportunity cost to them. They could have used that for a rainy day (or to improve employee compensation). They chose the buybacks. You can’t deny they chose wrongly given the present situation.
Airline profit margin is just too thin when bad times come along as they inevitably do.
TWA and Icahn are a bad example. TWA was nowhere near the financial position of the present day big four.
The whole point about the buybacks is that there was an opportunity cost to them. They could have used that for a rainy day (or to improve employee compensation). They chose the buybacks. You can’t deny they chose wrongly given the present situation.
Airline profit margin is just too thin when bad times come along as they inevitably do.
#240
Gets Weekends Off
Joined APC: Sep 2019
Posts: 127
… and yet a scumbag vulture operation, Apollo Global Management, bought $2B of United collateralized debt. They did that to have leverage on the creditors committee should United declare chap 11, allowing them to control quite a bit of United's fate if United declares chap 11. And any action they take will be legal. So too big to fail doesn't apply with respect to rich corporate raiders.
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