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As per Matt Levine's newsletter on Bloomberg: " ... According to Bloomberg, four of United's top five shareholders are also top-five holders of American. Three
by mnglkhn2 10y ago
As per Matt Levine's newsletter on Bloomberg:
"
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According to Bloomberg, four of United's top five shareholders are also top-five holders of American. Three of them are also top-five holders of Delta Air Lines Inc. United's top 10 holders own about 49.8 percent of United Stock between them -- and about 51.6 percent of American and 37.6 percent of Delta.
American was up 3.8 percent yesterday.
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As you can see, boycotting does not necessarily improve things. Just shifts them around a bit.
- tyingq 10y agoI think this particular incident will help, if only solely for the procedures around deplaning already seated passengers. Needs more analysis, but it sounds like the airlines are somewhat limited in invoking "interference with crew members" as a threat, since the door isn't yet closed. At a minimum, they're aware now of the potential PR backlash.
- wccrawford 10y agoSure, the same people get the money in the end, but if one of their 4-5 nearly-identical businesses takes a serious hit, and the others grow, then they're learned what the market is serious about.
- tyingq 10y agoIt's less money for them regardless of which business, because they'll have to actually offer compelling compensation for overbooking. That's assuming this ends in this passengers favor. If that happens, and the average traveler knows that saying "No, thank you" is an option for deplaning...well. Edit: Betting Congress will also soon raise the current $1350 limit per ticket on denied boarding. They love to find ways to seem like heroes.
- notahacker 10y agoI bet United's management don't hold stock in American or Delta...