More Alaska Furloughs

[Old School 737]

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.

 

[Old School 737]

We should have got that $50 million in our contract!!!!!!!

 

[turbodriver]

That's what you get for letting the union make your voting decision for you.....

 

[Mea25000]

Can you say HTOA... Maybe this board does want to keep us independent.

 

[Old School 737]

That's what you get for letting the union make your voting decision for you.....

It would have been interesting to see how the vote came out if the union had taken a more neutral stance on the TA.

 

[Fubijaakr]

The only problem with taking a neutral or negative stance on a TA is that your MEC and NC then lose credibility at the negotiating table.

"Here's the TA we negotiated, but we're recommending the pilots vote against it."

If you're sincerely neutral or negative, you don't agree to the TA in the first place.

 

[Mamma]

The only problem with taking a neutral or negative stance on a TA is that your MEC and NC then lose credibility at the negotiating table.

"Here's the TA we negotiated, but we're recommending the pilots vote against it."

If you're sincerely neutral or negative, you don't agree to the TA in the first place.

He never did say take a negative stance, that was you. He said neutral...."Here is the contract we negotiated. Please vote by May 19th. Thanks." That would be neutral.

 

[Hpilot]

Looks like you jumped off the America West wave just before it became a tsunami.

What did you make the switch to?

Ended up after jumping around in Medical Sales. Start $80k. 3-4yrs $150k 10yrs regional sales manager $500k+ Yup actually flying the plane is great, but the job of being a pilot starting sucking balls a while ago. I hope the future merger is with Delta and not US Airways. US Air(tsunami) has destroyed enough airlines.