AirTran''s stock price

N464AT

Member
Aug 22, 2002
24
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www.usaviation.com
Does anyone have any thoughts as to why AAI stock seems to remain around the $3 and $4 mark, and jetBlue continues to hold above $35. Does Wall Street know something about the management or accounting policies of the different companies or is jetBlue prices artificially high. jetBlue does have a lower seat cost per mile than AirTran but will that continue as they accept more planes and the older ones will need more heavy maintinance. Most of the major stock prices are around $10 given the current climate.
 

gr8slvrflt

Member
Aug 21, 2002
34
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www.usaviation.com
I don't understand it either. With AirTran making money and the competiton announcing more cutbacks every day you'd think our stock would be doing much better. [:blackeye:]
 

Cool Bananas

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Aug 23, 2002
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Australia
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I think that Airtran is the most likely winner out of a US Airways shutdown. Even after US Airways annouced chapter 11 it hasn't done anything to the share price.
Its been hovering between- $3.45 and $4.40. should have brought some at $3.50.

I had a look at their balance sheet and investor pages on the website and they don't seem to have a lot of money available to them if US Airways went out of business would they get hold of enough money to reap the benefit, they haven't ever given dividends so the money made would have to be in share price gains. They only fly 717s which don't have the range to fly transcons so it limits their market somewhat. The 717 isn't something that anyone else is interested in, if another carrier like Northwest were to buy the 717 then it would make the airline and its planes a little more valuable, When AA brought TWA the 717 was disposed of, so its not if Airtran really have something that anyone wants to buy. Sure not airlines aren't brought or sold that often but to keep the price up you need to have something of value.

I will probably buy some Airtran shares now that I know how much I have to set aside for the Qantas capital raising. Just got myself a US share trading account.

I read all Airline stock are down about 37% for the year.

Jetblue is way to high, problem is people brought in at $45.00 and it jumped higher so I think shareholders are waiting for things to improve.
 

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