TOP 100 TRANSPORTATION AND LOGISTICS SITES
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| Will Bondholders Reject GM's Offer? Rolfe Winkler, CFA submits: This morning [[GM]] made an exchange offer to reduce its debt load. To avoid a bankruptcy filing, it said 90% of the company’s unsecured bondholders (measured by the principal value of their holdings) would have to accept stock in exchange for their bonds. But if an “ad hoc committee” of GM bondholders has anything to say about it, the plan appears dead-on-arrival. Bloomberg: General Motors Corp. bondholders find the automaker’s offer to exchange their $27 billion in debt for equity unreasonable and said they should be treated more equitably with labor unions.Complete Story » seekingalpha.com |
Mapping the GM Fallout Tyler Durden submits: Here's a fantastic interactive map, courtesy of Detroit News, demonstrating the unprecedented impact that the GM bankruptcy will have across the U.S.Complete Story » seekingalpha.com |
Allegiant Travel: Not Your Typical Airline Stock Alan Brochstein, CFA submits: It took me quite some time to warm up to Allegiant Travel (ALGT) (43.71, $874mm market cap), the Las Vegas-based airline operator and provider of other travel services. After all, I practically preach that the consumer of tomorrow won't be spending anything like the consumer of the past. Leisure travel is one of those areas that will likely struggle in the scenario I envision. Nevertheless, I see ALGT as poised to do very well whether the consumer retrenches or returns. Another reason I was slow to embrace the story is that it operates an airline. While I have had a long-term respect and appreciation for Southwest Airlines (LUV), I view the airline industry as perhaps even worse than the auto industry. For me to buy into an airline story, it has to be unique. Having read public filings and other company information, listened to conference calls and crunched a few numbers, I find that this is not your typical airline.Complete Story » seekingalpha.com |
Why Airline Mergers Don't Work: Scale Is Not a Blessing Victor Cook submits: On March 24, 2008 my first post on Why Airline Mergers Don’t Work opened with the following paragraph: Ever wonder why over the last 30 years Southwest Airlines management (NYSE: LUV) spent only $0.03 on mergers and acquisitions for every $1.00 of shareholder value they created? By comparison Delta management (NYSE: DAL) spent $2.35 for every $1.00 of value they created. And Northwest (NYSE: NWA) spent $1.61 on M&A for every $1.00 of value they created. In Louisiana we have a name for this kind of strategy: Jumping over a dollar to get to a nickel.Complete Story » seekingalpha.com |
Southwest Airlines Reports Higher Traffic in November Zacks.com submits: Last week Southwest Airlines (LUV) reported that its November traffic has jumped 11.7% over the same month last year. Load factor, or the percentage of available seats filled with passengers, in September rose to 76.5% from 63.2% in the prior-year period. Southwest said paying customers flew 5.88 billion miles last month, up from 5.26 billion in November 2008. Available seat miles, or capacity, fell 7.7% to 7.7 billion from 8.3 billion in the year-ago period. The airline plans to reduce 2009 available seat miles in the 5-6% range versus last year.Complete Story » seekingalpha.com |