IS the SOUTHWEST FURLOUGH RUMOR TRUE????

[Ralph Wiggums]

I believe that is what you might call denial.

Here are some facts:

LUV stock peacked about eight years ago and has been in a slow steady decline ever since. That's after almost doubling the size of the company and buying back $1.8 billion worth of stock. You're working twice as hard for half the return. Your business model might just have run it's course.

I guess that's the business model that has resulted in building the airline that carries more passengers in the United States than any other.

Herb and Colleen are retiring this year.

So what. I bet 75% of the people who fly SWA don't have any clue who Herb and Colleen are.

Oil closed above $108 today.

It's true that high oil prices are not good for any airline. But consider this: SWA already has a cost advantage over the competition. SWA is hedged more than any other airline. If fuel prices go up, we all pay more at the pump, but SWA's hedges also become more profitable, thus mitigating some of the increase in fuel cost. This serves to further increase the cost advantage we have over the competition. One could argue that rising fuel prices are even good for SWA....????

The economy is in recession.

True. This is not good for any airline.

Gary has said something to the efect that turning a profit is like #5 on his list of priorities. Can you say famous last words?

I missed that one. Maybe it's true. I know that Gary sent a letter to the homes of every SWA employee reiterating the importance of us pulling together to meet our financial goals, so I have a hard time believing that keeping the company profitable isn't at the top of his priority list.

Imagine if you can that this summer Herb and Colleen retire, oil tops $120, demand drops off and the owners of the company decide to replace mangement with someone who can earn them a decent return on their money.

The owners are the stockholders, a significant percentage of which work at the company. I have a hard time believing that there will be a wholesale uprising of the shareholders at the next annual meeting calling for Gary's head on a platter.

Draw your own conclusions, but I stopped updating my application awhile ago.

Hope you enjoy flying your Skywest RJ.

All I know is that I work about 16 days a month and make north of $100K in year two. Sounds like a good deal to me.

 

[GuppyWN]

If oil hits $120 a barrel then every airline is *************************ed - and we'll be selling our $62 hedges for a huge profit and use the money to fight off the big bad wolf.

Gup

 

[vixin]

DUDE the furlough rumor is not fact, but the rest i stated are facts! shrinking growth, Yet still growth..why cant you understand what you are saying here moron. MX issues, we still dont know the affect of this and wont for sometime deliverys deffered Yet still growing,15year upgrade this is just speculation...not sure what this has to do with a furlough though and I think it is closer to 10-12 years. Things change here very quick. We could be under 6 years this time next year you never know, and age 60 are all facts, hired over 60 only 40 applied hmmm retreads before the poolies The numbers are indicating only 24 have been offered a job and not all will take it...still has nothing to do with a furlough.....all are facts.Those are your facts that arent...i was trying to find out about the furlough rumor not create one, and you have been answered several times yet it still wont sink into that little head of yours... you just got pissed off for me asking??? yeah and im the crazy one!!NO just an idiot!

..................................

 

[StopNTSing]

I don't know why I waste my time refuting these same tired old saws, but here goes....

I believe that is what you might call denial.

Here are some facts:

LUV stock peacked about eight years ago and has been in a slow steady decline ever since. That's after almost doubling the size of the company and buying back $1.8 billion worth of stock.

Actually, it's been flat post-911, with some occasional moves to the upper teens.

You're working twice as hard for half the return.

What kind of pilot math are you using to come up with that statement? Our ROIC (Return On Invested Capital) has been around 10% for quite a few quarters...not the 15% that the company is striving for, but still not too shabby for this sector.

Your business model might just have run it's course.

Yeah, tell that to our balance sheet.

Herb and Colleen are retiring this year.

Okay, I'll give you that one. However, there is a pretty deep bench of mgmt talent that has largely taken over. The transition began several years ago.

Oil closed above $108 today.

Yes, but I think you're confusing SWA with most other airlines that do not have a large fuel hedging program in place.

The economy is in recession.

It is, just like it is want to do about every ten years. I remember how SWA fared during the recessions of the early nineties and two-thousands. Do you?

Gary has said something to the efect that turning a profit is like #5 on his list of priorities. Can you say famous last words?

Can you please find the exact quote for me? It's hard to respond to 'something to the efect' [sic]

Imagine if you can that this summer Herb and Colleen retire, oil tops $120, demand drops off and the owners of the company decide to replace mangement with someone who can earn them a decent return on their money.

If you're thinking about an LBO scenario, I think the recent meltdown in the credit markets has made that option far less attractive to the hedge funds and M&A firms.

Draw your own conclusions, but I stopped updating my application awhile ago.

Hey, we all need to follow our own flight plan in this crazy business. I'll be the first to admit this place isn't for everyone. For your sake, I hope your company can figure out how to make money this summer with $120 oil and RJs....

 

[StopNTSing]

FINALLY, someone else with the willpower to kick the kool-aid addiction and use some common sense on a SWA thread!!!

Actually, it sounds to me like just another malcontent (like yourself) that is looking really hard for any reason to dump on this company.

 

[EngineOut]

..................................

Are you Vicki?

 

[waveflyer]

Guys/Girls: it's not that southwest won't face challenges. it's that they have the employee group to handle them. no other airline has that, bc no other airline has kept their promises to employees. do you think gk will throw that out the window by running classes just to furlough? that's a stretch-not bc he's such a nice guy- but b/c their entire business plan depends on the morale of the people.
what i don't like about the kool-aid drinkers is i wonder if they are up for performing like they need to to keep wn a success-or are they so used to the wn's consistent profits that they think the profits happen magically w/o it earned. the downers are just that, downers. nut up and stop the 'sky is falling' mentality- b/c the sky will always be 'falling' on the pax side.
wn, more than anyone else is competing w/ noone but themselves- they are after the market that will choose to drive or not to go at all if the price isn't right. so strap in- we'll see if the employees have what it takes again- and if gk is up for leading through it.

 

[Reebo]

I believe that is what you might call denial.

Here are some facts:

LUV stock peacked about eight years ago and has been in a slow steady decline ever since. That's after almost doubling the size of the company and buying back $1.8 billion worth of stock. You're working twice as hard for half the return. Your business model might just have run it's course.

Herb and Colleen are retiring this year.

Oil closed above $108 today.

The economy is in recession.

Gary has said something to the efect that turning a profit is like #5 on his list of priorities. Can you say famous last words?

Imagine if you can that this summer Herb and Colleen retire, oil tops $120, demand drops off and the owners of the company decide to replace mangement with someone who can earn them a decent return on their money.

Draw your own conclusions, but I stopped updating my application awhile ago.

Where else would you want to be?

Besides FedEx and UPS what other airline is in a position to weather the storm?

With high Oil prices how long do you think it will be until Delta starts parking those CRJ's?

Trust me, I'm far from a koolaide drinker but I do think WN is well positioned to make it.

 

[Quimby]

I believe that is what you might call denial.

Here are some facts:

LUV stock peacked about eight years ago and has been in a slow steady decline ever since. That's after almost doubling the size of the company and buying back $1.8 billion worth of stock. You're working twice as hard for half the return. Your business model might just have run it's course.

Herb and Colleen are retiring this year.

Oil closed above $108 today.

The economy is in recession.

Gary has said something to the efect that turning a profit is like #5 on his list of priorities. Can you say famous last words?

Imagine if you can that this summer Herb and Colleen retire, oil tops $120, demand drops off and the owners of the company decide to replace mangement with someone who can earn them a decent return on their money.

Draw your own conclusions, but I stopped updating my application awhile ago.

OK....believe what you want.

 

[jke406]

Guys/Girls: it's not that southwest won't face challenges. it's that they have the employee group to handle them.

WARNING: Self-righteous poolie alert!!

you need to include this label with all of your posts. and for God's sake, have some self-respect.