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I am a frequent AirTran traveler. I have been wondering why this stock is traded in this range in spite of all the good news. EPS is at $0.43 for '99 and is expected to grow to $0.73 in '00 according to the S&P forecast. But on closer look, the '99 EPS did not include the $20m gain from SabreTech settlement and the $148m loss from fleet disposition. The true EPS for '99 is therefore a loss of $1.53 for '99. AAIR had a disposition charge of $27m in '98 already and that charge has grown 437% in '99. The question is how much more fleet disposition AAIR has to charge in the coming months? This is puzzle #1.

Puzzle #2 that I have about AAIR is that if it lost $1.53 per share in '99, how come AAIR still needed to pay income tax of $2.7m? Is there something funny about disposition charges? I hope some Fools can shed some light on this? Thanks.

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