AirTran could be delisted and BK this month?????

[PinnacleDude]

I just heard that some "experts" expect AirTran stock to drop below a dollar in the next 30 days causing it to be delisted.

If the stock is delisted, the financial institutions will likely change the arrangement on credit card deposits much like what happenend to Frontier. This would likely trigger BK.

I highly doubt this and I hope I am right.... many friends at AirTran. Yep, don't see it this year. Only possibly next year if oil stays high, but most of us will right there with 'em.

How many times have we seen airlines supposedly ready to give up the ghost make miraculous recoveries? How many times on this board have we read "So and so will be out of business by April." Then May, then June, then July. Thankfully, most all of us are still employed.

For example, I talked to a buddy this morning who said he thinks UAL will be gone by Christmas (no, he does not fly for SWA). I say good luck to that. It's not going to happen. I think if it gets that bad, Uncle Sam will step in and we may see a different industry. Like it or not.

Very sad times in this industry.

I agree 100%. If oil stays at $150 or higher, I think it will be very difficult for even SWA next year and that is not good for pilots or the profession.

What is good for pilots is a lot of different airlines making a lot money. I hope we return to those days once again.

 

[Hobiehawker]

right now I just wish the SWA guys would keep to themselves. Even though possibly well intended, during these times it is questionably well intended.

Again, whats it to you rough neck if its true?

 

[Andy Neill]

Shares do get delisted after a certain period of time under $1. per share, but unless things have changed, a Company can also do a "reverse split" . . . 3 shares converted to 1, for example, so 3 shares worth 90 cents become converted to 1 share worth $2.70

Can I get a ruling on this? Andy? Lowecur? InstructorDude (NOT!)

Besides what you said, the $1 per share thing is a NASDAQ requirement and AAI is traded on NYSE. Now if the price gets below $0.91 per share, that takes the market cap below $100 million which is an NYSE requirement.
http://www.nyse.com/regulation/listed/1147474807344.html

 

[Max Powers]

Pay cuts won't save us.....Just making sure you boys understand

 

[Wesb737fo]

I just heard that some "experts" expect AirTran stock to drop below a dollar in the next 30 days causing it to be delisted.

If the stock is delisted, the financial institutions will likely change the arrangement on credit card deposits much like what happenend to Frontier. This would likely trigger BK.

Very sad times in this industry.

Dude....if you're going to post this cr@p, tell us who these "experts" are. I've heard "experts" on this board say alot of sh!t that turned out to be bogus.

 

[blueridge71]

If that were true. SWA would be setting up shop in ATL.

Heaven forbid.

 

[lowecur]

Shares do get delisted after a certain period of time under $1. per share, but unless things have changed, a Company can also do a "reverse split" . . . 3 shares converted to 1, for example, so 3 shares worth 90 cents become converted to 1 share worth $2.70

Can I get a ruling on this? Andy? Lowecur? InstructorDude (NOT!)

Ty,

I doubt a reverse split would be in order if mgt has every intention of Chapt 11. I'm sure much of the leak is from discussions with people that hold leases, mortgages, and of course the credit card companies. Bob would have told them what he needs or else 11 is the next step. He wants to head into 11 with lots of cash and doesn't have time to diddle around in negotiations over the next few months. FRNT let their cash get too low and I have doubts they can last the year out. AAI could easily last 24 months with cash on hand and the ability to slash expenses to survive. A good manager knows his companies limitations, and Bob is an excellent manager. Tough times require tough decisions.

If the employees can be patient and accept Bob's mgt decisions, the future airline paradigm will reward those still around.

imp: ​

 

[BLUE BAYOU]

Uhhhh, have you seen all the airline stocks lately? I don't think the worries at AAI aren't at least industry wide with the exception of SWA...

CAL 6.74
NWA 5.50
DAL 4.64
AMR 4.47
UAUA 3.43
JBLU 3.21
LCC 1.91
AAI 1.38
FRNT .49
MESA .30

More importantly, some airlines like LCC and UAUA have had highs of 30+ and 60+ dollars per share only a year ago, so their drops have been significant. NWA and DAL wrote off about 6+ billion in loss of value earlier this year.

If I were a betting man and could figure out who'd survive this downfall, it's a great time to buy!!!

 

[lowecur]

Moody's is the reason for the tumble + another analcyst's downgrade. Cash projected around $300M by year-end, but I think the 4Q and all of 2009 will produce lower oil ($100 bbl) if no CAT problems with Hurricanes or attack on Iran. My guess is cash will be closer to $350M by year end.

Since it wasn't any leaks that caused the selling, it's possible Fornaro may wait awhile....although, I wouldn't recommend it. He needs to park some planes and cut another 20-30% from capacity asap. If he can do this without 11, god bless him.

imp:​

NEW YORK (Associated Press) - Two downgrades and a negative outlook given for the airline industry sent shares of AirTran Airways' parent company tumbling Monday nearly 19 percent to a new 52-week low.
There's no near-term threat of a bankruptcy filing by the Orlando, Fla.-based discount carrier. But analysts and ratings agencies are concerned about AirTran's deteriorating cash position in light of record high fuel prices.

"AirTran is expected to continue to generate negative cash flow from operations and in the face of scheduled debt maturities and capital spending obligations, the company's modest cash balance could erode over the coming year," Moody's Investors Service said Monday as it downgraded AirTran's debt rating to a lower degree of junk status.

Moody's noted that AirTran is a low-cost carrier and is cutting capacity and taking other measures to try to conserve and generate cash in the face of oil prices that have soared to $145 a barrel, but the ratings agency said that won't be enough to turn the tide.

It said that while AirTran is currently in compliance with the covenants contained in its credit card processing agreements, the company's credit card processing banks have the right to increase the credit card holdback under certain circumstances, which would increase AirTran's cash requirements.
"AirTran has no unused lines of credit available and substantially all of its assets are encumbered," Moody's said.

Also Monday, Credit Suisse analyst Daniel McKenzie downgraded four airlines, including AirTran, and Fitch Ratings issued a negative outlook for the airline industry as a whole. Calyon Securities airline analyst Ray Neidl projects that at current fuel prices AirTran's unrestricted cash will fall to $294 million by the end of this year and $102 million by the end of next year.

Kevin Healy, senior vice president of marketing and planning for AirTran Airways, said he doesn't believe Neidl's projections take into account some of the cash raising and capacity cutting initiatives the airline has and is taking.

"When you look at the industry, oil is the issue," Healy said. "We are taking steps to deal with oil."
He declined to say whether AirTran has thought about filing for bankruptcy protection.

Neidl wrote in a client note that he believes the 10 biggest airlines can withstand current oil prices for the remainder of the year, but suggested "some bankruptcies are a real possibility" if crude remains at that level or keeps rising.

"The industry is moving into 'survival mode' and has entered uncharted territory," he wrote.
AirTran shares fell 32 cents, or 18.8 percent, to close at $1.38 in trading Monday. The stock had previously traded in a 52-week range of $1.40 to $11.17.

 

[Kharma Police]

I just heard that some "experts" expect AirTran stock to drop below a dollar in the next 30 days causing it to be delisted.

If the stock is delisted, the financial institutions will likely change the arrangement on credit card deposits much like what happenend to Frontier. This would likely trigger BK.

Very sad times in this industry.

Oh man, thanks for the laugh!, "boy golly, times are sure sad for everyone except us of course!"