No merger for SWA-looks like internal growth

[roughneck]

http://www.boston.com/business/ticke...est_chief.html


Quote:
Southwest Airlines Co. chief executive Gary Kelly says rising fuel costs put major pressure on the strapped airline industry to increase fares.

Kelly spoke today at a breakfast hosted by the Greater Boston Chamber of Commerce.

Kelly said it appears that every airline, except for Texas-based Southwest, will report a loss in the first quarter this year. He said that means costs will either have to go down or fares will rise - though costs already have been reduced industry-wide.

Kelly said the industry can adjust to a drop in flyers by finding innovative ways to offer air travel.

He also indicated Southwest wasn't interested in its own merger, like the Northwest-Delta deal. He said just the thought is daunting, given the complexity and upfront costs. (AP)

100 unplanned new hires for next month. I hope that is just the beginning of the RAMP UP.

 

[crxpilot]

http://www.boston.com/business/ticke...est_chief.html


Quote:
Southwest Airlines Co. chief executive Gary Kelly says rising fuel costs put major pressure on the strapped airline industry to increase fares.

Kelly spoke today at a breakfast hosted by the Greater Boston Chamber of Commerce.

Kelly said it appears that every airline, except for Texas-based Southwest, will report a loss in the first quarter this year. He said that means costs will either have to go down or fares will rise - though costs already have been reduced industry-wide.

Kelly said the industry can adjust to a drop in flyers by finding innovative ways to offer air travel.

He also indicated Southwest wasn't interested in its own merger, like the Northwest-Delta deal. He said just the thought is daunting, given the complexity and upfront costs. (AP)

100 unplanned new hires for next month. I hope that is just the beginning of the RAMP UP.

Thats a little premature.............the fat lady hasnt finished singing yet........at least not till April 29

 

[firstthird]

So, fill us in. Who reports April 29th? and why do you think they might report a profit when airtran, jetblue, and everyone else has not? It is overused and trite, but w/o the hedges, even SWA would've been in trouble this quarter. Of course, w/o the hedges, SWA would've been raising prices some time ago and the entire dynamic of the industry would be different (better? worse?). At some point, the pax go away when you raise prices. We haven't hit that point yet with the continued outrageous load factors.

So, who is this airline that looks to post a profit on April 29th?

 

[cappydd]

Gary Kelly and Company are very smart, and will onl do what SWA needs to do, if ad when that time comes. They will not merge or acquire if they dont feel it is in the best interest of Southwest to do so. That being said, I am sure they are looking at all options out there. We as employees will be the last to know.

 

[Wesb737fo]

I would agree..why would SWA want to buy, merge or whatever? I'm sure they have continued their hedging so why not just sit back and watch all the rest of us flail about.

Can someone enlighten me as to the fuel hedge thing.

I'm assuming that SWA doesn't go up to the pump where the fueler says "oh...SWA...well then you only pay half of what everyone else pays". My guess is someone in an office in DAL trades oil in the futures market and takes those profits, subtracts it from the annual fuel bill. SWA then (on paper) says we paid an equivalent amount less for gas in a certain time frame.

Bottom line....I guess they are paying this guy alot money to do this.

 

[canyonblue]

Bottom line....I guess they are paying this guy alot money to do this.

The guy primarily responsible for the past few years hedging was recently promoted to a VP position.

 

[Dan Roman]

Seems to me SWA doesn't need to merge with anyone. They have a formula that works better than any other airline, period.
I have no direct connection to SWA and no desire to work there (I'm quite happy were I'm at), however I'm laughing at these guys who feel compelled to attack SWA.
SWA employee's seem to enjoy their job better than most airline employee's, are very well compensated, have a great schedule and better job security than anyone else in the industry. What's wrong with that? They can keep doing what they have been doing and if they want to expand overwater, they could get a very good deal on a large order of 787's. I think they would gain nothing but headaches if they merged with anyone.

 

[crxpilot]

So, fill us in. Who reports April 29th? and why do you think they might report a profit when airtran, jetblue, and everyone else has not? It is overused and trite, but w/o the hedges, even SWA would've been in trouble this quarter. Of course, w/o the hedges, SWA would've been raising prices some time ago and the entire dynamic of the industry would be different (better? worse?). At some point, the pax go away when you raise prices. We haven't hit that point yet with the continued outrageous load factors.

So, who is this airline that looks to post a profit on April 29th?

Allegiant Air

 

[waveflyer]

100 unplanned new hires for next month. I hope that is just the beginning of the RAMP UP.

where did you hear this news? or is that just the may classes already announced?

 

[slaquer5]

Allegiant Air

Are you sure they are a major airline?

 

[crxpilot]

Are you sure they are a major airline?

No one has said anything about "major" airline. Gary Kelly was simply quoted as sayiing that "Kelly said it appears that every airline, except for Texas-based Southwest, will report a loss in the first quarter this year."
and then firstthird said "So, fill us in. Who reports April 29th? and why do you think they might report a profit when airtran, jetblue, and everyone else has not?
Nobody has said major..........just you.

 

[firstthird]

Well, good luck. It would be nice to have another airline also reporting a profit. all the news in this industry is so damn depressing most of the time.

Allegiant does seem to have a pretty good niche there in Vegas and supposedly Vegas is recession proof. Hopefully we won't be testing that theory anytime soon; since the economists predict 5 of every 1 recessions.

 

[Tejas-Jet]

where did you hear this news? or is that just the may classes already announced?

3 classes in April....2 in May and so far....1 in June...for now...

 

[Reelbigfish]

Well, good luck. It would be nice to have another airline also reporting a profit. all the news in this industry is so damn depressing most of the time.

Allegiant does seem to have a pretty good niche there in Vegas and supposedly Vegas is recession proof. Hopefully we won't be testing that theory anytime soon; since the economists predict 5 of every 1 recessions.

Allegiant also has a pretty stong foothold in Florida too.

Even with oil prices where they are, Allegiant has been holding its own...http://forums.flightinfo.com/showthread.php?p=1535452#post1535452

Allegiant may not be a "major", and its certainly not for everyone, but I know a lot of guys that don't want to go ANYWHERE else!

 

[slaquer5]

Allegiant may not be a "major", and its certainly not for everyone, but I know a lot of guys that don't want to go ANYWHERE else!

I in no way was trying to slam Allegiant, I thought GK was talking about major airlines. My bad