Pinnacle Files Bankruptcy

[Parsad]

For you long-time Pinnacle shareholders.  Never understood the interest in this business...even when Mohnish invested in it.  Cheers!

 

http://finance.yahoo.com/news/pinnacle-airlines-files-bankruptcy-035519030.html;_ylt=Anu1MYSsyw28XBoWvPznspmiuYdG;_ylu=X3oDMTQ0cTVxNHEyBG1pdANGaW5hbmNlIEZQIFRvcCBTdG9yeSBSaWdodARwa2cDMjEyMzk2Y2ItOTM4YS0zNzk3LTllYTktYWU0Y2UxNjg0YjA5BHBvcwMxBHNlYwN0b3Bfc3RvcnkEdmVyA2Y0ZDZkYzIwLTdjODItMTFlMS04ZmY3LTcxZGU5YmM5NDFiNw--;_ylg=X3oDMTFvdnRqYzJoBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25zBHRlc3QD;_ylv=3

[netnet]

Parsad,

 

What made you dislike this business?  I assume that it was the structure of the business ecosystem--supplier to companies that were (are) struggling, with no particular market power beyond a contract that could go poof if repudiated in BK court.

[twacowfca]

Parsad,

 

What made you dislike this business?  I assume that it was the structure of the business ecosystem--supplier to companies that were (are) struggling, with no particular market power beyond a contract that could go poof if repudiated in BK court.

 

Sanj can speak for himself, but here's my two cents worth.

 

Airlines are the epitome of a bad business.  Feeder airlines are the worst subset of that industry.  Make a list of all the qualities that make a good business, and one will see that feeder airlines are the antithesis of almost all of those good qualities.  :P

[Parsad]

Parsad,

 

What made you dislike this business?  I assume that it was the structure of the business ecosystem--supplier to companies that were (are) struggling, with no particular market power beyond a contract that could go poof if repudiated in BK court.

 

Not a fan of debt-laden, capital-intensive businesses.  Especially, if they are in a cut-throat business, beholden to strong unions, and have few competitive advantages.  There are easier ways to make money!  Cheers!