Dirkou
Topic Author
Posts: 372
Joined: Mon Jun 23, 2003 2:57 am

What If I Want To Buy An Airline?

Sat Dec 27, 2003 8:26 am

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...)

Tks
 
Matt D
Posts: 8907
Joined: Fri Nov 19, 1999 6:00 am

RE: What If I Want To Buy An Airline?

Sat Dec 27, 2003 8:29 am

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.
 
APAOps5
Posts: 94
Joined: Fri Dec 19, 2003 1:37 pm

RE: What If I Want To Buy An Airline?

Sat Dec 27, 2003 8:33 am

Any purchase more than 10% of the shares has to be announced anyways. Are you thinking of hostilie taking over an airline?
 
luisinho
Posts: 205
Joined: Fri Nov 24, 2000 12:28 am

RE: What If I Want To Buy An Airline?

Sat Dec 27, 2003 8:40 am

hiiii

what about getting married with the daughter of the owner of the company or president of administration or the chairman or major share holder?  Smokin cool

That could be nice... but if she was ugly like a ninghtmare?  Nuts

My god... it would be from the other world  Laugh out loud
 
LMP737
Posts: 4800
Joined: Wed May 08, 2002 4:06 pm

RE: What If I Want To Buy An Airline?

Sat Dec 27, 2003 8:45 am

Warren Buffet once said that if you want to be a millionaire start off as a billionaire and then buy an airline.
Never take financial advice from co-workers.
 
Dirkou
Topic Author
Posts: 372
Joined: Mon Jun 23, 2003 2:57 am

RE: What If I Want To Buy An Airline?

Sat Dec 27, 2003 8:49 am

I'm not thinking on an hostile taking nor marrying the daughetr of the owner.

I just want to know what I need to do to take a seat in the Administration of a medium size airline like JetBlue or Frontier. How many shares do I need?
 
lijnden
Posts: 528
Joined: Wed Apr 02, 2003 1:34 am

RE: What If I Want To Buy An Airline?

Sat Dec 27, 2003 9:29 am

Stock tip:

UAL

Call your local broker
Be kind to animals! Next trip: ORF-ORD-NRT-IAH-ORF
 
elwood64151
Posts: 2410
Joined: Fri Feb 08, 2002 10:22 am

RE: What If I Want To Buy An Airline?

Sat Dec 27, 2003 9:48 am

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
Posts: 13916
Joined: Sun Oct 26, 2003 5:25 am

RE: What If I Want To Buy An Airline?

Sat Dec 27, 2003 9:53 am

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.

Jan
Je Suis Charlie et je suis Ahmet aussi
 
Tango-Bravo
Posts: 2887
Joined: Sun Jun 17, 2001 1:04 am

RE: What If I Want To Buy An Airline?

Sat Dec 27, 2003 2:11 pm

I have heard that it's possible to make a small fortune in the airline business -- all you need to do is start with a large fortune  Big grin
 
Guest

RE: What If I Want To Buy An Airline?

Sat Dec 27, 2003 2:21 pm

20% may be a controlling share in any airline. It may win you a seat on the board.. which pays pretty well.
 
iflyatldl
Posts: 1796
Joined: Mon Nov 03, 2003 1:41 am

RE: What If I Want To Buy An Airline?

Sat Dec 27, 2003 2:25 pm

In this day and time-if ya got the money to burn.......  Smokin cool
Ah, Summer, Fenway Park, Boston Red Sox and Beer.....
 
longhaulheavy
Posts: 376
Joined: Wed Dec 17, 2003 1:52 am

RE: What If I Want To Buy An Airline?

Sat Dec 27, 2003 2:52 pm

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. Big grin

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
Posts: 15446
Joined: Tue Mar 20, 2001 1:32 pm

RE: What If I Want To Buy An Airline?

Sat Dec 27, 2003 3:13 pm

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.

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