Skybus ends service to San Diego, Bellingham, reduces service to Burbank

[skiandsurf]

FMS-Speed,

It seems as if you are a punching bag, and we are just beating the crap out of you, and for that, I am sorry.

But you keep mentioning the Home Everynight and QOL. Just a few questions for you; are you from CMH originally? If not, did you move your family to CMH? If you moved your wife and kids to a new city, how is their QOL issues (leaving family and friends)? When you worked for AA, did you live in domicile or commute?

As I have said before, good luck to you and your family (when airlines shutdown, its the family that suffers).

 

[ualdriver]

dude, you're embarrassing yourself with anyone here with a finance background.

Stocks, don't just go up and down in price from the date of IPO. Southwest for example has split 23 times since IPO. Ryanair which sells for about $10 a share is the largest airline in the world in terms of market cap. If my $5.25 strike price stock hits $20-30 and splits into 2 x 5.25 strike price stocks at 10-15, then those go up, and split again... in a few years, they'd be worth a million. Use google and look up stock splits.. Berkshire Hathaway is one of the few stocks that's never split, Google being another.

A few thoughts in case there is a gullible pilot on here reading on how he might make it rich on Skybus stock options if he signs onto the Skybus pilot welfare rolls........

Actually, UEJ500 was quite right about stock splits and his $180 dollar estimate. Companies split stock in order to keep the stock price low enough to avoid the perception of their stock being too "expensive" relative to thier peers. For example, if UAL had issued less shares of stock during its post-bankruptcy "IPO," the shares could have been initially valued at, say, $200 a share instead of thirty-something bucks it opened at. It makes not one bit of a difference whether the share at the IPO is $1000 a share or $1 a share, the total number of shares will represent the underlying value of the company at the IPO. If UAL was valued at 5B at their IPO (for example) they could have issued one share worth 5 billion dollars or 5 billion shares worth one dollar- it doesn't matter. After the IPO, the "perceived" value of the company would be reflected in its stock price as the stock trades on our giant vote machine we generally call the stock market.

Where am I going with this? In order for FMSs' 5500 stock options with a strike price of 5 bucks a share to be worth one million dollars, the stock would have to trade for around $186.82 either at the IPO or sometime down the road when he vests[($1,000,000/5500)+ $5]- roughly speaking.

Well, if I went to a company that promised me some sort of riches through an IPO, I'd be asking myself lots of questions. How many people in the company have lots of shares like my 5500? What do I think my company might be worth? And here's the big one: Just how many shares does my company plan on issuing when/IF they ever go public? Are they going to be a 500 million dollar company and issue 500 million shares worth about 1 dollar each making my stock options worthless? Are they going to issue 100 million shares at $5 each and make me break even? Who the heck knows? And that's IF IF IF they even make it and go public?

And if my shares vest over time, is my company's share price going to decline to the point where my options are underwater anyway when I am ready to sell?

FMS talks about stock splits as they're some sort of magic. They're not. It matters not one whit if Skybus decides to split their shares or just let the stock price rise without splitting- that is if it does rise at all. In order for a shareholder to make money, the stock price has to go up, period. Whether the shares split or not does not matter. FMS is hoping that the value of his stock is going to increase over many multiples to make his million dollar dream come true. Doubtful, but I guess possible. Ask the average JetBlue guy how that worked out for them.

So if you're going to Skybus hoping that those stock options will make up for your deficient paycheck, you may want to rethink that.

Further, I wish no Skybus employee any ill will. When I say that I hope the company goes out of business very quickly, it is not so that I can spite guys like FMS who probably have had difficult careers already. It is soley to keep companies like Skybus from dragging down our already pathetic airline pilot wages further down the drain.

 

[WabiSabi]

and ualdriver makes the post of the day!:beer:

 

[Shrek]

great post ualdriver........

 

[ualdriver]

Thanks guys.

 

[vixin]

:beer:
Heres to ya UALdriver!!
But I still dont think he will get it.

 

[weasel_lips]

Well at least there is one (and ONLY one) positive to high fuel prices. Maybe it will help put an end to $HITBUS.

Such a “great business plan” they are already retreating from the west coast (thanks to high fuel costs).

CAL (Lite) and Eastwind already tried the GSO thing… didn’t work!

You guys flying the Airbus for less than RJ rates should be ashamed of yourselves! You really should. Thanks for helping to put another nail in the coffin that once was a proud profession.

I hope one of you Ranger Rick look a likes shows up wanting to ride jumpseat on my airplane. I am going to send you packing!

Have a nice day!

 

[redbook]

Umm, FMS you posted this in May of this year

" We are all part of this problem to some degree.. and while my solution is to avoid non-union companies, some one else might be different.. and we're all running in different directions rather than in the same one.

We've got all the airlines, the ATA, the entire Republican party, and 1/2 the democratic party, and the entire consumers union against us... the only way to keep this profession a good one is unity, and the only way to do that is with unions (ALPA or otherwise).. or we're screwed!"

So are you trying to unionize Skybus? Or have you changed your mind in a few short months?

 

[PCL_128]

He saw dollar signs flash before his eyes with those stock options, so he's abandoned all of his principals. Pretty sad, really.

 

[temcgrew]

dude, you're embarrassing yourself with anyone here with a finance background.

Stocks, don't just go up and down in price from the date of IPO. Southwest for example has split 23 times since IPO. Ryanair which sells for about $10 a share is the largest airline in the world in terms of market cap. If my $5.25 strike price stock hits $20-30 and splits into 2 x 5.25 strike price stocks at 10-15, then those go up, and split again... in a few years, they'd be worth a million. Use google and look up stock splits.. Berkshire Hathaway is one of the few stocks that's never split, Google being another.

.....and when is the IPO again?

You are right, I don't know much about stocks. As for embarrasing myself, not so much. You seem to be an expert in that arena but you are the one waiting around for a private company to first prove itself, then go public, then do well enough for the stock to split TWICE and go up and make you millions?

You might as well go to Vegas, I think the odds would be better out there. Heck you might even get some!!