Southwest Airlines borrows $600 million

[ASADFW7]

Gen, is correct GK has made statements about not expanding uncovered with fuel hedges. Perhaps if we do expand the loan is a short term cushion to cover excess fuel costs?

 

[DrunkIrishman]

Is SWA interested in purchasing international routes from anyone?

 

[fngswa]

Spinning info

Or MAYBE, they are borrowing money due to uncertain times due to fuel costs...just as they said!

 

[Kugelblitz]

I hope this thread isn't suggesting Southwest did something in error. You all know the price for criticizing Southwest Airlines, you jealous, lower tier pilots......

 

[737 Pylt]

Good thing an airline has the credit history to be able to borrow 600 million.

Say it with me Steven............:bawling:
N - N - N - N - Nic award!

737

 

[On Your Six]

Why all the fuss? Interest rates are low now and SWA wants to add low-cost debt as a cushion. That is what any responsible company should do - you borrow when rates are low and you don't need the cash (at least have it available). The problem typically ocurrs when you have to borrow when you actually need the cash (i.e., credit crunch).

SWA is doing the right thing given that interest rates are low now...

 

[contrail67]

Or MAYBE, they are borrowing money due to uncertain times due to fuel costs...just as they said!

They are not immune to high fuel costs...no matter what they may think..

 

[contrail67]

Is SWA interested in purchasing international routes from anyone?

They will need aircraft to do those routes first.

 

[General Lee]

Gen, is correct GK has made statements about not expanding uncovered with fuel hedges. Perhaps if we do expand the loan is a short term cushion to cover excess fuel costs?

You may be correct.


Bye Bye--General Lee

 

[Bdfg1]

Say it with me Steven............:bawling:
N - N - N - N - Nic award!

737

Ok...N - N - N - 6.7 BA BA BILLION! :laugh:

 

[navigatro]

I can't even afford to borrow $6 for lunch....

 

[Fubijaakr]

Only partly true, General. LUV could buy AS and inherit their fuel hedges. AS is the second most hedged airline in the US behind LUV.

 

[General Lee]

Only partly true, General. LUV could buy AS and inherit their fuel hedges. AS is the second most hedged airline in the US behind LUV.

That is true. Alaska has 50% hedged at $75 a barrel I believe (talked to an Alaska pilot recently). But, you will still inherrit some extra flying that was not hedged, which could be expensive in the long run. Hey, I think your hedges are GREAT, and I wish we had a fraction of that. But, any extra expansion on your part will cost you somehow. Is it a good risk? It might be.


Bye Bye--General Lee

 

[Tanker Clown]

Maybe the money is to patch up the -300s.

 

[Eagle757shark]

AirTran just raised their cash to 500 million dollars in the bank. Could Southwest possibly look at acquiring AirTran for around 500-600 million and then turn around and pay back that loan with the 500 million AirTran has in the bank? This was sort of what AirTran was attempting to do with Midwest initially. Midwest then had around 250 million in the bank and AirTran offered around 290 million for Midwest really only amounting to a purchase of around 40 million when you take the cash that Midwest had in the bank. Shall be interesting times ahead.

Or could Southwest see a United/US Airways merger as being just around the corner and are loading up to pick up what assets are shed along the east coast?