A quick rundown of recent airline industry activity.
Reno makes the move: Reding out, O'Gorman in
Don't say we didn't warn you. As we had thought would happen,
Chief Executive Bob Reding was booted out yesterday by the Reno board of directors. The board had become increasingly frustrated at Reding's leadership of late, as the carrier continued to struggle financially while other carriers posted record gains. The board named Joseph R. O'Gorman -- who recently retired as executive vice president of
-- chairman, chief executive and president of Reno. Shares of the airline are up around 6% this morning.
TWA has other friends besides us
It was reported yesterday in the
St. Louis Post-Dispatch
that as of Dec. 31, the
Lindner Dividend fund now owns $39 million of
convertible stock and $11 million in nonconvertible TWA bonds. According to the report, this $50 million stake would put the mutual fund's ownership share in the carrier at 5.3%.
(As originally posted, this story incorrectly said that the Lindner fund had taken an additional $50 million stake in TWA.)
As most of you will recall,
Prince al-Waleed bin Talal
of Saudi Arabia purchased a 5% stake in the carrier last year. With this purchase, it would appear that the Lindner fund is now the largest TWA shareholder.
Psst ... Wanna make an 86% return in just one day! Quick -- call 1-800-Trade-Pan Am
What a difference a day makes ... 24 little hours. Ahh, excuse us. It's Friday. Well, it is official. The "smart money" has pulled out, and the traders have jumped in. Gentlemen, start your engines, trading in shares of
stock is off to the races.
The stock, which had lost 36% on Tuesday, gained 86% yesterday. The stock is now up around 38% this morning on more heavy trading volume. Yep -- for you day-trader types, these opportunities are what you live for.
Pan Am also issued what has to be a classic PR "spin" release yesterday. Pulling away the phrases such as "a move to accelerate its cost reduction program," the bottom line is that the carrier announced it will lay off some 225 employees, ground two of its planes and cut back routes immediately in an effort to survive. The airline is canceling daily flights from New York's
airport to the Bahamas; Ponce, Puerto Rico; and the Dominican Republic.
Holly Hegeman, based in Dallas, pilots the Wing Tips column every Thursday for TheStreet.com. This is a special "extra" column. You can usually find Holly, publisher of PlaneBusiness Banter, buzzing around her airline industry Web site at www.planebusiness.com. Holly welcomes your feedback at