$43 billion incinerated on Share Buybacks since 2012 to manipulate up the share price would come in handy now. Shares -60% since June 2019.
Then there’s Air France-KLM, with two governments squabbling over bailouts and acting like they want a divorce.
Chapter 11 bankruptcy that wipes out shareholders is the correct solution for collapsing share-buyback queens. US airlines already know this from experience. It works.
It’s not the drop that worries me, it’s the historic neck-breaking volatility.
Of immediate concern is how much cash Boeing is burning due to the 737 MAX fiasco and now the coronavirus, and how much cash it can pile up to avoid a liquidity crisis.
Boeing got battered too but not nearly enough. Introducing my SADJAUS stock index tracking the 7 largest US airlines.
Having become a master of financial engineering instead of aircraft engineering. UPDATED with the announcement on Jan 21 that “ungrounding” of the 737 MAX will be further delayed.
Story stocks, momentum stocks, hyperventilation stocks, consensual hallucination stocks, financial engineering stocks: anything but reality.
And 200 miracle orders — well, just a letter of intent — for the Boeing 737 MAX at the Paris Air Show.
Rolls-Royce’s debacle for the Boeing 787 Dreamliner. And China is learning it the hard way.