US Airways Stock in Freefall

[BMIBABYgirl737]

Our planes are clean? That's a joke at the expense of the flight attendants who are not getting paid any extra to do more for less $$. I agree, I can't wait until Evelyn Davis gets ahold of them in the shareholders meetings. Something has to change now. They cannot even get our paychecks or W2's out correctly.

 

[Travelpro72]

I think something is on the horizon. US certainly cannot continue in its current form. Certainly not in this economy. VFF's hate you and your employee's aren't that fond of you either. Best to realize just what makes your airline run......ya know, the employees and OH YEAH the VFF's that pay the bills.

 

[nycbusdriver]

I agree, I can't wait until Evelyn Davis gets ahold of them in the shareholders meetings.

Come on. Evelyn Davis is a joke. She has to be heard at all these various airline company shareholders' meetings because she owns just enough stock to meet the minimum to get up and vent.

All the Chairmen and CEOs just nod and say, "Yes, Evelyn," and then promptly ignore her entire rant. She's a publicity hound, and nothing else. Her influence on shareholders' meetings is nil.

 

[zflygrl]

Last time the stock was that low AWA Merged with USA......maybe this time it will be UAL. UAL's stock is at about $5.42. Such a deal.

 

[freedom]

Exactly....perfect question...because if the economy is going to take out an airline, why would it pick on US alone???


What I think most people fail to realize is that a "recession" is a good thing...it cleanses the economy and the society of "old thinking," businesses and products that simply don't work any longer. For some reason, we as a society fight natural cycles and villify them....which then prolongs them.

What's happening right now is nothing more than an alarm that it's time to change.

I hope US survives...I don't actually want "fewer airlines." But honestly, I'm having a hard time seeing it. Companies that have little to offer the high yield passengers are in trouble...and that's a big reason why WN has been working hard to make their product more appealing to the business traveler...and they have succeeded.

Meanwhile, US has kicked business travelers to the curb. As the WN CEO proudly thumped his chest a while back..."we have more business travelers then most airlines." And he's right....fly on them some time and it's not hard to see.

Fly on US and see passengers with their carry ons in hefty trash bags...I'd argue those aren't business travelers. LOL

First off I think there will be only one or two airlines a year and a half from now … either through mergers or liquidation ..

As far as your suggestion that this is a recession , I completely disagree … already this is the longest “recession “ in history and if you look at it in market terms the dow has lost 50% of it’s value from it’s 14000 peak ..and there is NO bottom in sight …

In some highly educated circles it’s privately whispered that in three months the US will be printing dollars backed by nothing and within 6 months most banks will be nationalized .. Already we can see the problems starting to occur in our largest banks such as citi and bank of America …

 

[FlightChic]

Oh I want to buy some LCC stock! Of course with my luck I would buy it for $1.50 and then the company would file for bankruptcy or something. It would be fun to buy a few shares (I don't know the minimum) and then watch it go up and then sell it. Like another poster said, it is like gambling.

 

[UPNAWAY]

Generaly speaking there is no minumum to buy stock. Now to open a brokrage account if you do not aready have on might require a $1,000 or two initial deposit.

 

[UtterlyUdder]

Oh I want to buy some LCC stock! Of course with my luck I would buy it for $1.50 and then the company would file for bankruptcy or something. It would be fun to buy a few shares (I don't know the minimum) and then watch it go up and then sell it. Like another poster said, it is like gambling.

Maybe I can save you from yourself. I augered in twice with USair and once with TWA. I got in the habit of loving my brains being beaten out by unwise stock ventures. I still miss the pain. Maybe I'll try my unluck again. Maybe third time will be the charm. Maybe knot. However, tomorrow is Monday and eTrade will be open for bid'nith. I can't wait! Now I won't sleep a wink tonight!

You don't need much to open an eTrade account. Hide your kids though.

UU

 

[SolidCactus]

Buying any stock that has fallen 70% is a true gamble. If you BELIEVE in the management, and the company as a whole, and that the company will not end up bankrupt - it is a great deal, and if the company makes it, you would make a huge return on investment. If you don't believe - don't invest. Common stock is the last thing to get paid back if a company files a bankruptcy. If there is a bankruptcy, you lose everything.

 

[N965VJ]

Airlines expected to make it through 2009
Bankruptices unlikely, though could change if downturn extends to 2010

AP, 2-23-09

ATLANTA - Plunging airline stocks suggest investors worry a few carriers may wind up in bankruptcy, victims of the country's financial crisis. Analysts say there's no immediate danger of that for any major carriers, although it could be the fate of one or two by this time next year if credit markets stay tight or the economy weakens further.

Tempe, Ariz.-based US Airways Group Inc. is considered the most vulnerable among legacy carriers, according to analysts.

<SNIP>

"We got some problems potentially in early 2010 if some airlines cannot raise additional cash," Calyon Securities airline analyst Ray Neidl said Monday in an interview.

US Airways said in regulatory filing Wednesday that its high level of fixed obligations limits its ability to fund general corporate requirements and to obtain additional financing. Its fixed obligations include debt, aircraft leases and financings and aircraft purchase commitments.

US Airways said its "existing indebtedness is secured by substantially all" of its assets. It also said the terms of a credit facility it has with Citicorp and other financing arrangements require the company to maintain consolidated unrestricted cash and cash equivalents of not less than $850 million.

Neidl currently projects US Airways will end 2009 with $1.4 billion in unrestricted cash and short-term investments.

US Airways spokesman Morgan Durrant said Monday that his carrier has proven its ability in the past to raise significant cash when others didn't think it could.

Linkage to the rest