Clown-Free Zone... sorry, no clowns allowed Message Board

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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: patron_anejo_por_favor who wrote (123825)	9/19/2001 5:41:18 PM
From: reaper	Read Replies (4) of 436258

Why exactly is the gov't using my hard-earned tax dollars to bail out the airlines? Cursory review of the cash flow statements for AMR, UAL, Delta, US Air, Continental & America West reveals: in 1998-2000 (the greatest economy for air travel ever) those 6 airlines managed to generate $30.5 billion in cash from operations. but, not ones to let money burn a hole in their pockets, the managements of these companies managed to spend a cumulative $34.1 billion on capex. and that's not the half of it. despite a nearly $4 billion funding gap in the greatest economy of all time, these companies proceeded to repurchase $7.9 billion of their common stock (at prices 2-6x higher than today). the most hilarious is US Air, which in 1998 bought back $1.1 billion of its stock at prices between $40-80 per share; they could buy the entire equity market cap 3x over with that money today. so the airlines want a $24 billion taxpayer bail-out after they have pissed $7.9 billion of shareholders' capital down a rat-hole buying back their own stock? f8ck the airlines. cheers

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