Airline is a Tough Industry

(May 6, 2017) Just three years later, Berkshire Hathaway surprised the investment world by taking multi-billion dollar stakes in American, Delta, United, and Southwest. But at the 2017 shareholders meeting, Warren #Buffett didn’t sound very enthusiastic about it.

Airline Attracts Capital

(May 4, 2013) Fifteen years later, following two bankruptcies and a reverse merger with America West, US Airways was preparing to combine with American Airlines, one of a series of mergers that sharply reduced the number of competing carriers. At the 2013 Berkshire Hathaway shareholders meeting, Warren Buffett was skeptical when asked about the industry’s... Continue Reading →

Success of Executives Jet

(April 28, 2001) Warren Buffett discusses how Executive Jet successfully passed labor costs onto its customers and the importance for airlines to keep their costs in line with their competitors.

Bailed Out with No Desire to Jump Back

(May 4, 1998) Early in 1998, with help from a booming stock price, US Airways paid back its $358 million loan with common shares that were sold for $574 million. Warren Buffett “mistake” had also brought in around $240 million in dividends. Three months later, Buffett told shareholders Berkshire wouldn’t rule out making another airline... Continue Reading →

Pleasant Surprise on US Air

(May 5, 1997) By 1997, the investment was looking even better. Buffett gave credit to Stephen Wolf, the airline’s CEO, for improving its financial performance and catching up with scheduled dividend payments to Berkshire. Buffett hoped Wolf might even be able to “nullify” his mistake.

Mistake in US Air Investment

(May 6, 1996) Two years later, US Air had a new CEO and a brighter outlook. It also still had its “out of line costs.” Buffett told the 1996 shareholders meeting the investment looked “considerably better,” but, even so, it was a mistake that Charlie Munger wouldn’t let him forget anytime soon.

US Air need to Cut Cost

(April 25, 1994) #Berkshire Hathaway’s loan to US Air, in the form of a purchase of preferred stock, was almost five years old when Warren Buffett told the 1994 shareholders meeting it was a deal he should not have made. He held out hope, however, that the airline’s CEO might be able to cut costs... Continue Reading →

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