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Air Group board approves
$50 million stock buyback
Move aimed at boosting value for shareholders
June 11, 2009
Alaska Air Group’s board of directors today approved a stock repurchase program authorizing the company to buy up to $50 million of its common stock. Air Group will pay for the shares using a portion of the $1.1 billion in cash it has on hand.
“This program allows us to enhance shareholder value through the repurchase of outstanding shares while preserving our strong cash balance,” Chairman and CEO Bill Ayer said. “Even after the repurchase, Air Group will continue to have the best cash position among major U.S. airlines.”
Air Group’s stock, which has been trading in the $15-a-share range recently, is down from a 2009 high of nearly $31 last January.
“At current stock price levels, $50 million would buy back nearly 10 percent of the company’s outstanding shares, making each shareholder’s investment in Air Group worth that much more,” CFO Glenn Johnson said. “Today’s action is consistent with our commitment to provide value to our three major stakeholders — our customers, employees and shareholders.”
Share repurchases are a common tool employed by public companies. Hawaiian Air and SkyWest also have share repurchase programs in place. In 2007 and 2008, Air Group bought back nearly $112 million of its shares. The $50 million share repurchase the company announced today represents about 5 percent of the company’s cash reserves, and compares with $500 million in spending in 2009 for aircraft and other capital projects and about $1 billion for employee wages and benefits.
$50 million stock buyback
Move aimed at boosting value for shareholders
June 11, 2009
Alaska Air Group’s board of directors today approved a stock repurchase program authorizing the company to buy up to $50 million of its common stock. Air Group will pay for the shares using a portion of the $1.1 billion in cash it has on hand.
“This program allows us to enhance shareholder value through the repurchase of outstanding shares while preserving our strong cash balance,” Chairman and CEO Bill Ayer said. “Even after the repurchase, Air Group will continue to have the best cash position among major U.S. airlines.”
Air Group’s stock, which has been trading in the $15-a-share range recently, is down from a 2009 high of nearly $31 last January.
“At current stock price levels, $50 million would buy back nearly 10 percent of the company’s outstanding shares, making each shareholder’s investment in Air Group worth that much more,” CFO Glenn Johnson said. “Today’s action is consistent with our commitment to provide value to our three major stakeholders — our customers, employees and shareholders.”
Share repurchases are a common tool employed by public companies. Hawaiian Air and SkyWest also have share repurchase programs in place. In 2007 and 2008, Air Group bought back nearly $112 million of its shares. The $50 million share repurchase the company announced today represents about 5 percent of the company’s cash reserves, and compares with $500 million in spending in 2009 for aircraft and other capital projects and about $1 billion for employee wages and benefits.