better to go long aerospace. I'm long ERJ. BA may hold some real value. Enough emerging market carriers will pick up the slack for falling demand, particularly for fuel efficient jetliners. Airlines are always so speculative. ERJ and BA are real value investments. I'm aware that Steinhardt made a killing betting on airline consolidation. But that's real speculative. I'm long ERJ, short CAL and UAUA, BTW.
for a small position short term trade it's done well for a for 200 million dollar investment====no way!!! institutions who burned over a billion on an industry that has gone through 2 chapter 11 in the past are NUTS!,...NUTS i'll tell you. this industry is heavily in debt with extremely fixed cost and variable cost..oil hits $200/barrel and it's over for airlines. as an investment it's sucks.
high fuel cost is the main reason for airlines failing....people don't need to travel and in a recession,,,airlines go bust because people don't have money for vacations and companies cut back on business travel... majority of travel is descretionary.
these stocks are traded like they are already bankrupt losing 90% of investment value is same as chapter 11 tax writeoff [ QUOTE]Quote from wutangfinancial: better to go long aerospace. I'm long ERJ. BA may hold some real value. Enough emerging market carriers will pick up the slack for falling demand, particularly for fuel efficient jetliners. Airlines are always so speculative. ERJ and BA are real value investments. I'm aware that Steinhardt made a killing betting on airline consolidation. But that's real speculative. I'm long ERJ, short CAL and UAUA, BTW. [/QUOTE]