AirTran Stock down 35% !!!

[T3700]

Maybe AAI is next?

 

[gearup5]

..or people reacting to the Frontier filing.

 

[RedDogC130]

or mabye the charge of $10 for a second checked bag.

 

[vikesfanIV]

..or people reacting to the Frontier filing.

Nope, it's definately not a reaction to Frontier. Wall Street knew about that this morning when the market opened. Go look at the daily stock chart today for Airtran. Everything was normal until about 3pm...then volume skyrocketed and the stock went off a cliff. Wall Street insiders know something....

 

[PCL_128]

Something bad is afoot. You don't drop 40% for nothing. Somebody knows something up on Wall Street. I'm getting ready for a furlough.

 

[FL717]

ALERT ** RUMOUR MONGERING*** ALERT

I heard a rumour (just a rumour) that we could be getting into the same situation as Frontier.

AirTran has a little over $300 million in unrestricted cash. Supposedly if we get near $250 million mark in cash, the credit card vendor could pull the same stunt they did with Frontier this week by withholding 50% of credit card receipts for an extended period of time.

IF that would happen, AirTran would face an immediate cash crunch in daily cash flow operations... and we would find ourselves seeking bankruptcy protection.

BTW - Rumour has it we are burning down cash daily.

Discuss....

 

[PCL_128]

Where are those rumors coming from? Reliable sources, or just crew room gossip?

 

[Secret Squirrel]

Stock back up 15% IN AFTER hours trading. Jittery investors? The possiblity of a white knight? Lemmings following a dropping market?

Who knows.

 

[YourPilotFriend]

A news agency issued a release on bankrupt carriers today around the time this stock went down. They listed Airtran by mistake instead of ATA. Might be a reason.

 

[BigRed1]

Here is the daily chart for 4-11-08. Yikes.

http://finance.yahoo.com/q/bc?s=AAI&t=1d

 

[Ty Webb]

The sky is falling!

President of Exchange: Mortimer, your brother is not well. We better call an ambulance.

Mortimer Duke: F#%@! him! Now, you listen to me! I want trading reopened right now. Get those brokers back in here!

Mortimer Duke: Turn those machines back on!

 

[airline#5]

If info has leaked out about their credit card processing company possibly withholding money, as did Frontier's, BK for AAI may also be the likely result.

 

[RIDETHELIGHTING]

hey airline 5 being a d!ck again go figure

 

[PCL_128]

We would have to lose a good $100 million or so of our last reported cash position to get to the point of the credit card companies being able to make that move. If there's a problem, I don't think that's it.

 

[Daytonaflyer]

All because of rumors. Move along, nothing to see here.

http://www.thestreet.com/_yahoo/new...11793.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

 

[satpak77]

for whatever reason major investors dumped stock today, with 12 million shares being traded, or 6 times the average volume.

this is not "in response" to Mesa or high oil, SOME underlying trigger event caused this

 

[airline#5]

hey airline 5 being a d!ck again go figure

PU55Y

 

[PCL_128]

Apparently not. According to the company spokesman, we actually have more cash on hand today than reported last quarter. If that's the case, then no credit card hold-back problems will take place. Seems as though this might actually have been just a huge rumor run amok. I bet the stock rebounds big time on Monday.

 

[satpak77]

Apparently not. According to the company spokesman, we actually have more cash on hand today than reported last quarter. If that's the case, then no credit card hold-back problems will take place. Seems as though this might actually have been just a huge rumor run amok. I bet the stock rebounds big time on Monday.

That is like saying Ken Lay said that you should buy more Enron stock.

 

[Colonel Savage]

...the credit card vendor could pull the same stunt they did with Frontier this week by withholding 50% of credit card receipts for an extended period of time...

I suppose this is legal, and in a contract somewhere, but how can a credit card vendor withhold sales reciepts from a company based on their cash position? Those were AAI's/F9's sales, using the vendor as a conduit of convience, meaning it's not the vendor's money, but the airline's.

Can someone explain the rationale?

 

[FL717]

This Press release was just put out by AirTran in response to the stock dropoff:

AirTran Airways Updates Financial Information
Friday April 11, 6:21 pm ET

ORLANDO, Fla., April 11 /PRNewswire-FirstCall/ -- AirTran Airways, a subsidiary of AirTran Holdings, Inc. (NYSE: AAI - News), today updated financial information in response to late market volatility.

"AirTran Airways is one of the strongest low-cost carriers operating today," said Bob Fornaro, president and chief executive officer. "We have ample balance sheet strength to support our operation."

AirTran Airways has the following to report:
-- As discussed in our most recent Annual Report, we are in full compliance with the terms of our credit card agreements, and we have no holdbacks with any of our major credit card processors.

-- Our liquidity position has strengthened from year-end. Our aggregate cash and investments balance increased from $326 million at Dec. 31, 2007, to $358 million at March 31, 2008. Additionally, we expect our liquidity to further strengthen during the second quarter.

-- 6 consecutive years of profitability - only two major airlines can make this claim.

-- The youngest, most fuel-efficient all-Boeing fleet in North America.

-- The lowest non-fuel operating costs in the industry.

-- More than 45 percent of our fuel needs are hedged for the balance of the year.

-- An experienced and stable management team.

-- A number one quality ranking with the 2008 Airline Quality Report.

AirTran Airways, a Fortune 1000 company, offers more than 700 affordable, daily flights to 58 U.S. destinations. With 8,900 friendly Crew Members and America's youngest all-Boeing fleet, AirTran Airways provides XM Satellite Radio and Business Class seating on every flight. For more information and free online booking, visit http://www.airtran.com.

 

[bladeusa]

same info just posted above.

 

[PCL_128]

That is like saying Ken Lay said that you should buy more Enron stock.

I trust management about as far as I can throw them, but after watching a slew of executives dragged to police cars in handcuffs the last few years, very few managements deliberately release false information. They may try to sugar-coat things or avoid certain subjects, but outright lies to shareholders are pretty much unheard of. If the company says that their cash position has increased, then you can pretty much take that to the bank (pun intended).

 

[satpak77]

This Press release was just put out by AirTran in response to the stock dropoff...

See my post above. Nothing against the hardworking Airtran guys, however corporate greed and snake CEO's will do anything to save their own hide.

Remember company officers have zillions of stock shares and options, it is in THEIR INTEREST to keep the stock price up while they quietly off-load shares.

They could CARE LESS about the "employees and members of the (INSERT COMPANY NAME) family"

dont buy into the BS

 

[Hamburger]

I suppose this is legal, and in a contract somewhere, but how can a credit card vendor withhold sales reciepts from a company based on their cash position? Those were AAI's/F9's sales, using the vendor as a conduit of convience, meaning it's not the vendor's money, but the airline's.

Can someone explain the rationale?

I'm not positive but they may have been afraid of a statement similar to:
"Customers who purchased tickets from ATA using a credit card should contact their credit card provider directly for more information about how to obtain a refund for unused tickets, ATA said

If the money had already been transferred to ATA, then the credit card company would be left holding the bag. Holding back half of the funds would provide them a cushion.

 

[Colonel Savage]

If the money had already been transferred to ATA, then the credit card company would be left holding the bag. Holding back half of the funds would provide them a cushion.

OK, Thanks. So in light of AAI's statement, I guess we're back to the origional question, why the selloff?

 

[Secret Squirrel]

There are two good articles above. There was a rumor that AAI was at risk from the same scenario that caused frontier to file. But AAI does not have ANY credit holdback from a card
company. Completely false rumor. The stock price has already recovered 60% of its loss in after hours trading. It is back up to $5.30. There is nothing to see here you vultures. Get back to your circling.

 

[satpak77]

There are two good articles above. There was a rumor that AAI was at risk from the same scenario that caused frontier to file. But AAI does not have ANY credit holdback from a card
company. Completely false rumor. The stock price has already recovered 60% of its loss in after hours trading. It is back up to $5.30. There is nothing to see here you vultures. Get back to your circling.

It needs to remain $5 or above or it will get de-listed so lets hope todays AH session sets the tone for the next 30 days.

If not, no more trading.

 

[PCL_128]

Chances of being de-listed are nil. With the statements released by the company this evening, I think you'll see the shares rebound by a rather large percentage on Monday.

 

[Secret Squirrel]

It needs to remain $5 or above or it will get de-listed so lets hope todays AH session sets the tone for the next 30 days.

If not, no more trading.

Do you even have a clue as to what the delisting proceedures are for the AMEX? Do you know what the AMEX is? Or why that might be important. If you are just being a flammer or trying to stir the pot then I guess you did it. But if you are serious then you need to educate yourself and not just spout off like an idiot.

-The AMEX has no minimum value for delisting
-After 30 days there is a 90 day observation period as well as opportunities for appeal before delisting.
-Most people on this website don't know their butt hole from a hole in the ground when it comes to business.