Investing in airlines

[TheD.A.T.]

A long time ago an instructor at the academy told me we are not allowed to own airline stock due to conflict of interest.

Anybody know where the rule is on this or is it complete bs? Can I buy an airline ETF like JETS? Coming out of tech and airlines look like a good play with the recovery.

 

[ABACUS]

A long time ago an instructor at the academy told me we are not allowed to own airline stock due to conflict of interest.

Anybody know where the rule is on this or is it complete bs? Can I buy an airline ETF like JETS? Coming out of tech and airlines look like a good play with the recovery.

https://www.faa.gov/jobs/new_employee_onboarding/current_federal_employees/media/Notification_to_Applicants_and_New_Employees.pdf

 

[ClearanceClarence]

It’s amazing what a simple Google search can accomplish: Ethics | US Department of Transportation

“

• Prohibit FAA employees from holding stock or other securities in an airline, aircraft manufacturing company, or a supplier of components or parts to an airline or aircraft manufacturing company.“

In other words, it’s absolutely not allowed. Generally speaking as a government official, you’re prohibited from owning stock in anything you could potentially have influence over. Unless you’re a member of Congress, of course.

 

[32andBelow]

Yah they give you this list of stocks you can’t invest in and 20 of them are airlines that don’t exist anymore.

 

[PushingTin]

terrible investment even if youre a pilot geek. I doubt Wilford Brimley (a great man) invests in insulin

 

[32andBelow]

terrible investment even if youre a pilot geek. I doubt Wilford Brimley (a great man) invests in insulin

The only good aviation play I’ve seen was getting virgin America at the ipo and holding it till Alaska bought them.

 

[PushingTin]

The only good aviation play I’ve seen was getting virgin America at the ipo and holding it till Alaska bought them.

BOEing I think has always been good long term investment, but its not an airline obviously. The market and the economy are about the most uncorrelated they've ever been so its really hard to say whts a good investment anymore. Whatever the Fed is bailing out or buying I guess

 

[32andBelow]

BOEing I think has always been good long term investment, but its not an airline obviously. The market and the economy are about the most uncorrelated they've ever been so its really hard to say whts a good investment anymore. Whatever the Fed is bailing out or buying I guess

I dunno how investing in Boeing would be bad for a controller. Are we gonna sequence all the jet blue behind the southwest?

 

[Mike Kilo]

I dunno how investing in Boeing would be bad for a controller. Are we gonna sequence all the jet blue behind the southwest?

Already do!

 

[TheD.A.T.]

Wasn’t planning on a long term investment. Purely pump and dump as covid has disappeared from the media and bookings have jumped as well as share prices. Oh well, plenty of other plays out there outside Aviation.

 

[Acquired Taste]

Wasn’t planning on a long term investment. Purely pump and dump as covid has disappeared from the media and bookings have jumped as well as share prices. Oh well, plenty of other plays out there outside Aviation.

Airline stocks offered up some of the easiest plays. Shorting airlines and boeing a few months back would have been free money and it was so obvious. Wish we could trade them short term but instead we just have to sit inside like a grounded kid watching all our friends thru the window having fun playing outside. I think a good compromise would be to let us trade airlines as long we don't hold any one position for more than 45 days or something along those lines.

 

[SIXTY-NINE]

Airline stocks offered up some of the easiest plays. Shorting airlines and boeing a few months back would have been free money and it was so obvious. Wish we could trade them short term but instead we just have to sit inside like a grounded kid watching all our friends thru the window having fun playing outside. I think a good compromise would be to let us trade airlines as long we don't hold any one position for more than 45 days or something along those lines.

Hindsight is 20/20 my dude

 

[Acquired Taste]

Hindsight is 20/20 my dude

Definitely, but you'd have to be blind not to see that airlines were, and still are in trouble. If I was able to capitalize by going short, I probably would've given back any gains on them on this unwarranted bounce anyway.

 

[SIXTY-NINE]

Definitely, but you'd have to be blind not to see that airlines were, and still are in trouble. If I was able to capitalize by going short, I probably would've given back any gains on them on this unwarranted bounce anyway.

Relax and look for the next opportunity. You'll drive yourself insane otherwise.

 

[32andBelow]

Definitely, but you'd have to be blind not to see that airlines were, and still are in trouble. If I was able to capitalize by going short, I probably would've given back any gains on them on this unwarranted bounce anyway.

So do it to cruise ships or hotels.

 

[FightingIrish2012]

Don’t invest in the banned stocks, people will say “do it, the FAA will never know and would not even care unless you invest 100K” or so. Maybe that’s true but it’s one of the three or four things you can actually get fired for after you become a CPC.

Don’t risk it as there are plenty of better options, you might have missed the boat as the market was at 29K, crashed to 18K and is now already back to 26K, but by investing in any blue chip company that was “too big to fail” would have netted you a huge return. There is still time to do this but the return won’t be nearly as good. But the auto companies, entertainment companies, GE, all the legendary companies took a major hit, 50% in many cases and are close to back to normal again.

 

[Acquired Taste]

So do it to cruise ships or hotels.

You're not wrong, I missed the boat on the cruise stocks but now I think that ship has sailed.

 

[Winter77]

+20% on Cheesecake Factory and +18% MGM today heyyyyyyyyyy

 

[spider]

Some of you should also look into what an ETF is. An ETF is basically a mutual fund but it's traded like a stock. Mutual funds/ETF's can invest in a variety of things, most of which you won't know about. Now, an ETF specifically for aviation may be a little different, though. You should probably not do it at all (for a number of reasons) or seek written guidance.

 

[Termine]

Now, an ETF specifically for aviation may be a little different, though. You should probably not do it at all (for a number of reasons) or seek written guidance.

Yep, still prohibited. I forget exactly what the piece of paper they gave us said, something like no more than 40% of the fund could be invested in aviation companies? Something like that. And just because a company isn't listed on the document doesn't mean it's kosher, the document is just a listing of examples of things you can't invest in. Use some common sense here, y'all.