Dirkou From United States of America, joined Jun 2003, 571 posts, RR: 0 Posted (11 years 3 months 3 weeks 5 days 9 hours ago) and read 4627 times:
I'm not familiar with the stock market, etc, just with aviation.
But if I want to buy, let's say, 20% of JetBlue? How much would it cost? Would it be 20% of the total ammount of shares they have on the stock market? Can anyone point me a good website or book to understand this in more detail? Is there any "Stock Market Simulation" sofwtare available? (I know, this could be a little off topic but...)
Matt D From United States of America, joined Nov 1999, 9502 posts, RR: 45
Reply 1, posted (11 years 3 months 3 weeks 5 days 9 hours ago) and read 4618 times:
Buy AN airline, or buy PART of an airline?
To do the former, all you need is 50% plus one shares, probably, yes, at listed share prices. To be a "part owner" so to speak, you only need 1 share.
To either buyout, or even 20% of a major airline will require far more money than any of us will ever have. And if you have access to that kind of money in the first place, you will know where to turn. And this web site isn't the place, so I will end here.
Elwood64151 From United States of America, joined Feb 2002, 2477 posts, RR: 5
Reply 7, posted (11 years 3 months 3 weeks 5 days 7 hours ago) and read 4436 times:
To either buyout, or even 20% of a major airline will require far more money than any of us will ever have.
You assume quite a lot...
If you want to purchase a percentage of a company, any company, you have to determine how many shares are outstanding. Then, you must go to a broker and ask him/her to buy whatever percent of that number of shares. You must either have the money or the financing to do this. At one time, you could buy up to 50% of the shares on margin, or credit. I don't know if it has been raised or lowered.
In any event, to determine how many shares you need to buy a seat on the administration (or rather, the Board of Directors), you must know how many directors the company has, and divide that number in the number of shares outstanding, and then determine if anyone has more shares than that. If they do, you must purchase more shares than them to ensure your Director (or you) can get elected to the Board. If you and this other owner can agree to elect a particular director or two, then you needn't worry.
For more information, I simply recommend some classes in Finance and Business Administration at your local Community College.
Those who fail to learn history are doomed to repeat it in summer school.
MD11Engineer From Germany, joined Oct 2003, 14441 posts, RR: 62
Reply 8, posted (11 years 3 months 3 weeks 5 days 7 hours ago) and read 4427 times:
Two colleagues and myself have once been thinking about to get a DC-8-71 and to start a cargo operation (wet leasing it to parcel carriers). All of us have been working in big jet maintenance for years, so we know a bit about the business. But the expenses just to satisfy the law were MUCH too big for us. We dropped it because we wouldn´t be able to find a financer.
Longhaulheavy From United States of America, joined Dec 2003, 402 posts, RR: 2
Reply 12, posted (11 years 3 months 3 weeks 5 days 2 hours ago) and read 4312 times:
Yeah, but if you've got the cash to get you a seat on the board, you probably don't care how much a director's position pays.
But seriously, if you want on the board, a significant stake in shares is one way to do it.
For example, right now AMR, the parent company of American Airlines, has a market cap of $2.04 billion. (There are 159 million oustanding shares, at roughly $12.80 a piece.)
Of these 159m shares, 95% are owned by institutions, i.e. mutual funds, pension plans, management companies, and the brokerage firms that manage the AMR stock and sell it other investors. So go cut deals with the institutions and buy yourself 10% or so.
Another way to get on the board is to be a 1) board member of an important company, 2) board member of a company that supplies something important to AA, or 3) the token celebrity-businessman. In the case of AMR, they have all 3. (Roger Staubach of the Dallas Cowboys is a director.)
*Note that in terms of assets, airlines are a great deal. Think of all of the planes that AA has, and how those alone are worth much more than $2.04b. It just goes to show what kind of faith people have in others being able to manage an industry that's frought with risk.
Srbmod From , joined Dec 1969, posts, RR:
Reply 13, posted (11 years 3 months 3 weeks 5 days 2 hours ago) and read 4294 times:
You can actually check out the insider info on an airline and see how much stock each member of the board has. You would be better off going after an airline whose stock price is cheap, therefore you can acquire a large number of share. Just looking at the insider info on AAI, the top insider owner has 40,000 shares, while the largest institutional owner has nearly 5 million shares. You don't even want to know the stats on LUV and JBLU.