SWA to buy Alaska

[amF16]

Heard from a friend at Alaska that the rumor going around is that SWA is interested in them.

 

[johnsonrod]

Heard from a friend at Alaska that the rumor going around is that SWA is interested in them.

Your title is misleading and you should change it. Yes, it might be a rumor, but your title is definitive and you have NO PROOF. Citing a credible source (an article or quote) would be useful. True this is a rumor board but you should state that in your title - right?

 

[Old School 737]

Yea, heard that one before since we already have Colleen painted on the tail.

 

[FlyBarneyJets]

Yea, heard that one before since we already have Colleen painted on the tail.

Isn't that Jimmy Hendrix right in the middle of Voodoo Chile, Slight Return?

 

[Ih8AFYesmen]

Good... we all need a pay raise real bad! Though, I highly doubt SWA would want 1500 pissed off pilots to join their ranks.

 

[HighSpeedClimb]

Alaska taking it to the Streets

[FONT=Arial, Helvetica, sans-serif]Alaska Airlines pilots take to the streets in Seattle[/FONT]
[FONT=verdana, sans-serif SIZE=] By Rob Stapleton
Alaska Journal of Commerce [/FONT]

http://www.alaskajournal.com/images/050607/8630_512.jpg
Alaska Airlines pilots conduct informational picketing May 1 in front of Alaska Airlines headquarters in SeaTac, Wash., to demonstrate to management that they are unified in their effort to achieve a better contract. AP ​

[FONT=verdana, sans-serif]Alaska Airlines pilots banded together to show support for their negotiation committee by picketing their airline's headquarters in Seattle May 1, as Alaska Airlines officials voiced concerns over pilot costs, competition and weakening revenues.[/FONT] [FONT=verdana, sans-serif]“Higher fuel costs, increased competition and a softer revenue environment in the first quarter make it imperative that we continue to drive changes to keep ticket prices affordable and attract new customers,” said Bill Ayer, Alaska Airlines chairman and chief executive officer, after it announced its first quarter results April 26.[/FONT]
[FONT=verdana, sans-serif]The airline's agenda and picketing pilots may lead to long negotiations, say Air Line Pilots Association officials.[/FONT]
[FONT=verdana, sans-serif]“Alaska pilots want to show their support of our negotiations committee by picketing the Alaska Airline corporate office,” said David Campbell, a pilot for Alaska Airlines and communications chairman for ALPA.[/FONT]
[FONT=verdana, sans-serif]The demonstration and rally was to show the unified front of the 1,500 Alaska Airlines pilots, according to Campbell.[/FONT]
[FONT=verdana, sans-serif]Alaska Airlines' pilots are represented by a negotiation committee of three pilots and a contract administrator who represent the pilots as members of the ALPA.[/FONT]
[FONT=verdana, sans-serif]Both sides had set a goal of completing contract negotiations by May 1, according to ALPA and Alaska Airlines. Under the federal Railway Labor Act, the pilots' contract does not expire but becomes amendable.[/FONT]
[FONT=verdana, sans-serif]The two groups have been negotiating since January. Alaska Airlines officials said that they had agreed to 12 of 31 sections of the contract, however, six of the sections were not negotiated by either party before the formal negotiations started in January, and only six have been mutually agreed upon during the negotiations.[/FONT]
[FONT=verdana, sans-serif]“We had too ambitious of a finish date, and management offered us a plan that didn't meet our goals,” said Campbell, a first officer on an Alaska Airlines MD-80 jet.[/FONT]
[FONT=verdana, sans-serif]Alaska Airlines pilots took a pay cut two years ago when an arbitrator ruled on the contract. This cut in pay represented an average of 26 percent, during a period when the airline industry as a whole, and Alaska Airlines, was less profitable.[/FONT]
[FONT=verdana, sans-serif]ALPA pilots point out that the pay cut was from 21-36 percent based on seniority and other factors.[/FONT]
[FONT=verdana, sans-serif]Alaska Airlines said that despite agreeing to the arbitrator's contract, it would prefer to set its own terms.[/FONT]
[FONT=verdana, sans-serif]“We would rather have had a contract that represented both the airline's and pilots' interests,” said Amanda Tobin Bielawski, an Alaska Airlines spokeswoman.[/FONT]
[FONT=verdana, sans-serif]Alaska Airlines offered the pilots a tentative contract with only a 20 percent across the board decrease on May 25, 2006, according to Bielawski. This contract would have allowed for a 2 percent pay increase in 2008. “We would like to point out that the pilots voted it down in 2005,” she said.[/FONT]
[FONT=verdana, sans-serif]Campbell said that Alaska Airlines management had offered a contract that addressed labor points and work rules, but pilots rejected it.[/FONT]
[FONT=verdana, sans-serif]“We want a whole package, our work rules are not for sale,” Campbell said. “We want something solid like the foundation of a house.”[/FONT]
[FONT=verdana, sans-serif]Campbell said the four cornerstones of the contract are: work rules and pay, retirement security, job security and health care.[/FONT]
[FONT=verdana, sans-serif]According to Campbell, Alaska's management said that any improvements to pay would come in reduction to other parts of the contract.[/FONT]
[FONT=verdana, sans-serif]“We are 100 percent focused on these negotiations,” Bielawski said. “We are looking at competitive costs and productivity per flight hour, and Alaska Airlines has a higher cost per pilot flight hour than other similar airlines.”[/FONT]
[FONT=verdana, sans-serif]Alaska Airlines officials said both sides have been working hard, meeting three times a week since Jan. 8. She also said the two sides have had openers in November 2005, and that, on average, labor contracts take 17 months to negotiate.[/FONT]
[FONT=verdana, sans-serif]The airline is seeking a cost-neutral contract, trying to hold down costs, according to Bielawski.[/FONT]
[FONT=verdana, sans-serif]“We value the professionalism of the work of our pilots, this is a very competitive market, and our management is seeking market-based compensation,” Bielawski said.[/FONT]
[FONT=verdana, sans-serif]Bielawski also said that for the size of the airline, Alaska Airlines' pilots were among the highest paid in the country, compared to similar size, narrow-body operations.[/FONT]
[FONT=verdana, sans-serif]ALPA spokeswoman Jenn Farrell, however, said that the pilots found Alaska Airlines' management proposal unacceptable.[/FONT]
[FONT=verdana, sans-serif]Alaska Air Group Inc. reported April 26 a first quarter net loss of $10.3 million, or 26 cents per share, compared to a net loss of $79.1 million, or $2.36 per share, in the first quarter of 2006.[/FONT]

 

[Ih8AFYesmen]

More of the "blah blah blah" from the company, yaaaawn. Afte all these years, you'd think the company spokes clowns would come up with better phrases than the same crap they use over and over again.

 

[GuppyWN]

Good... we all need a pay raise real bad! Though, I highly doubt SWA would want 1500 pissed off pilots to join their ranks.

Why not? You get our pay scale and We learn what unity looks like. Sounds like a win win to me.

Gup

 

[Ih8AFYesmen]

Why not? You get our pay scale and We learn what unity looks like. Sounds like a win win to me.

Gup

Let's do it! Just don't even think of bringing in the current middle managers aboard. They've all be "Ayerized".

 

[ReverseSensing]

They've all be "Ayerized".

I think it's "Ayer-ated," as in, their heads are full of holes.

 

[starchkr]

Awwww Mannnnn....you had me thinking that SWA was actually buying Alaska. I was thinking, hey, what better way to control the market than to start buying up the individual states. Just think of the legislation they could pass to be the only carrier able to service cities in the states they buy.

 

[GuppyPuppy]

I would think that Sun Country would be a more attractive buy for SWA at this time.

GP

 

[XR650R]

Just my 2 cents.. with SWA's stock langushing in the $14-15 range, I believe pressure is building on Gary Kelly and Co. to mix it up if you will. LBO rumors have been circulating and while I think the chance of that is remote at best, it illustrates what can happen if your stock stagnitates. Institutional share holders(as well as everyone else) want a decent return on their investments. Because of this, and because our operation as a domestic operator is quickly reaching maturity I expect them to do something to stimulate the stock soon. This could take the form of different aircraft, a different style of operating, or a purchase of some sort. Time will tell.

 

[HalinTexas]

SWAPA guy came to the ATA MEC and talked about the possibility that SWA was interested in Alaskan, Frontier and Airtran (less likely should the Midwest thing go through).

SWA is probably interested in getting into some debt to alleviate hostile take overs.

I have no doubt that SWA is considering all kinds of options. Many are contingent on what other mergers/aquisitions happen.

Hold on tight folks. Anything can happen.

 

[ferlo]

Ms. tobin hyphen, whatever her F'n name is can take market rates and Shove them up her As*. It might take awhile but these people have created a monster they can't control. We're going to win this one, period.

 

[AKMD80GUY]

Amen Ferlo!!

 

[ultrarunner]

SWA could use some of that cash and institute a stock-buy-back program.

That'll get things rolling.

 

[Ih8AFYesmen]

Ms. tobin hyphen, whatever her F'n name is can take market rates and Shove them up her As*. It might take awhile but these people have created a monster they can't control. We're going to win this one, period.

We will choke the golden goose until it lays enough eggs or we'll break its neck. If I had enough eggs, I would love to just snap its neck right now but I need to feed my family.

 

[akairman702]

Ms. tobin hyphen, whatever her F'n name is can take market rates and Shove them up her As*. It might take awhile but these people have created a monster they can't control. We're going to win this one, period.

I hope so but it's going to take forever, and then some. According to what I've seen this week on the alaskasworld site they are enjoying a 99.5% reliable airline with an ontime percentage in the mid 80s. If I were in their shoes I would milk that situation for as long as possible.

May 1st was a great day for pilot unity at this company but it will mean little until management starts to see things our way at the negotiating table (does anyone see that happening soon?) or we're released to self help... around 2012.

 

[ferlo]

At some point I have to believe that the BOD is going to get tired of dealing with a group of people that are not just uncooperative, they're openly hostile toward managment. They've already lost a mail contract and they will eventually need to get us on board.

Look for our 99.5% reliability to plummet this summer. No job action needed, this thing is already stressed to the limit. Summer Sched. will push it over the edge...we'll still get blamed for it but we already knew that. I don't know how long it's going to take but like somebody else said, I'm ready to throw the "golden goose" into the wood chipper. It either pays or it dies. I get more indifferent daily.

 

[AKMD80GUY]

This airline is operating at such a high rate right now because everyone was sooooo worried about May 1 and what we would do. Fact is we (pilots) haven't done anything. They TDY mechanics around the system, they have CSA supervisors watching every move and May I think was a flex up month (I was in training) to have more reserves available. Management was geared up for something that hasn't happend and that has ALPA's message was very clear about work actions so for us it's status quo. I think once we get into summer it's going to go down hill fast.

You also have to look at the VP shakedown. There is no way Bill in his infinite wisdom came to the conclusion to to fire Finan and Forrest and move everyone else around. He is getting his stones twisted from the BOD. After another summer of below average performance, he is gone too.

As for the topic of this thread, I don't think SWA buys us. They don't have to. SWA has the resources, cash, planes, etc... to go into any market they desire. They can set the price at a level that Alaska can't match for the long term. Despite the term "brand loyalty" which we don't have anymore because we haved P/O'd so many people, we will lose customers to SWA and I'll bet we already have. Alaska has great money people, but lousy operational people and that will kill us.

 

[fly-n-fish]

I thought I read on this board awhile back that "Southwest buys assets not airlines." Alaska is light years away from needing to jettison assets, so why would SWA want to buy the airline outright? On the positive side, an Alaska FO would probably upgrade quicker this way...