REX Airlines

I was talking to my husband last night about choosing stocks to buy- apart from my trading account. Talking here and there, I came about REX Airlines. I have made lost on REX, but somehow I have the urge to buy some more. I decided to look at it again this morning, and here are my findings:

Fact:

• Airline business is very risky. It is not for the faint hearted.
• Small, very high pilot turnover.
• Even Warren Buffet lost money in his 1989 investment on USAir.
• Massive fixed costs, strong labor union, skyrocketing oil price.
• Revenue is very sensitive to the change of demand among other things.

Considerations:

• Share price had been on sideways for quite a long time
• Not too many competitors, REX is the only option on 33 of its 39 routes
• No debt!! Owning 22 of its 38 passenger plane.
• There's been Share Buy Back recently
• Directors buying
• Own its own pilot training academy (expected to produce 80 graduates a year)