Investors See Gold In Tarnished Airline Industry

[USA320Pilot]

Investors see gold in tarnished airline industry

PITTSBURGH (Post-Gazette) - Maybe Ed Shapiro is crazy for investing more money in the troubled, money-losing airline industry. But the partner with Boston equity fund PAR Capital Management has "great confidence" in the $100 million he devoted to the merger of US Airways and America West Airlines.

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Regards,

USA320pilot

 

[usair_begins_with_u]

Investors see gold in tarnished airline industry

Main Entry: mi·rage
Pronunciation: (m-räzh)

Function: noun

1: something illusory and unattainable

 

[whlinder]

Investors must be colorblind.

In all seriousness, if you think the price of fuel is going to drop, it isn't all that bad of an investment.

 

[RowUnderDCA]

Is that what they mean about hedge funds investing? There's a market for financial instruments that will benefit from falling fuel, say, like an unhedged airline.

 

[BoeingBoy]

This is the salient line:

"No matter the risk, some investors keep coming back to the beleaguered airline industry, looking for deals."

Jim

 

[funguy2]

Looks like with Wellington on board, the percentage of equity that the various stakeholders get has changed:

Old / New / Stakeholder
45% / 39% / current AWA shareholders
41% / 49% / new equity providers (old excludes Wellington, new includes Wellington)
14% / 12% / US Airways creditors

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