Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (123825)	9/19/2001 5:41:18 PM
From: reaper	Read Replies (4) \| Respond to 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