Over the past few weeks I have blogged a number of times about investor folly in putting dollars into airlines.
Ken Roe of Canjet sait it just a week or two ago.
And I commented how there was a neverending supply of suckers who liked the idea of owning shares in airlines…even if they were guaranteed to lose money.
Porter Airlines, an upstart Canadian carrier, has been showing how an airline should be run with great service and a customer focused attitude.
They were growing and taking market share in the small triangle of real estate they operated in.
The wanted to take their concept to the wider world. In order to do this they needed cash…big cash.
So they were going to float an IPO at about $6-$7 a share.
The feedback was the price is too high for today’s airline market. Too risky for the institutional investor who spell success or failure for an IPO these days.
So they reduced the going in price to $5.50 feeling confident they had found the right level for a win-win exchange.
Too bad but they lost. They have now withdrawn the IPO offering completely, waiting for a better day to come again in the aviation sector.
When that will be is anyone’s guess, but for now some of those expansion plans will have to be shelved.
That actually is unfortunate because they were showing promise to launch a different style of airline customer care.
And now I am proved wrong. There isn’t a sucker born every minute willing to throw money at airlines who may eventually falter, as most seem to do.
But wait…as Brutus said, “The ides of March have come, but not gone Great Caesar.”