SWA plan for 15% ROIC

[malibuVride]

If SWA decided to furlough pilots (FAT or RSW or both), I would refuse to pick up open time. Some of the folks who have financial situations that rely on 120TFP every month would not follow suit

The argument would be that not picking up open time would be contrary to the status quo. I would argue that furloughing is quite contrary to the status quo!

As far as those who would continue to pick up open time: Slash enough tires in the parking lots and the cost of picking up would change pretty quick!!

 

[tankerhead]

The argument would be that not picking up open time would be contrary to the status quo. I would argue that furloughing is quite contrary to the status quo!

As far as those who would continue to pick up open time: Slash enough tires in the parking lots and the cost of picking up would change pretty quick!!

Just do it out of uniform so the omnipresent surveillance cams don't catch you in your epaulets. Same for the mug shot.

 

[maxblast72]

GK has all but promised 15percent return this year. If he fails, he's out, and he's not going to make that statement unless he already has it in the bag.

Gary has laid out a road map to 15% in 2013. That road map includes Jet A at $3.30/gal. Since Jan 1, the spots Price of Jet A has gone up about 30 cents per gallon. Remember, each 10 cents per gallon equals about $185 million to the operating line. I doubt the SWA BOD would fire Gary because the cost of Jet A rose. Now if we don't reach 15% because we don't get the promised merger revenue synergies, that is a different story.

Somebody needs to take the punch bowl away from Bernanke before he prints another $2-3 trillion and causes Jet A to climb to $4/gallon.

 

[waveflyer]

Just do it out of uniform so the omnipresent surveillance cams don't catch you in your epaulets. Same for the mug shot.

Fine- but without any guidance from my union, I would never pick up while pilots are furloughed- I budget for just that reason- my min bills allow me room to do do that-

That said- the company would go to Swapa before furloughing anyone and work out something- leaves, reduced guarantees- etc

1 capt made the mistake of saying we should furlough in 2009 so he could pick stuff up- in the crew lounge- he started to argue about it benefitting even the furlough guys bc of efficiency- profit sharing etc- and before us junior could say something several senior capts stepped in and said 'he could be first' - and eventually the chief pilot interceded as well- flatly put "WE DON'T DO THAT"

Read an article interviewing Herb- no furloughing introduces a lot of discipline into the business- every step would be taken before furloughs

 

[humveedriver]

I work 4 four day trips. Whatever that gets me is what I make. Normally it's above guarantee. What's sad is that it's probably not enough for that Captain to be able to bid and fly his line. He wants furloughs so that he can have more access to better trips or more flexibility to get certain days off. I don't differentiate those people who think that way from scabs.

 

[GhettoBeechjet]

Fine- but without any guidance from my union, I would never pick up while pilots are furloughed- I budget for just that reason- my min bills allow me room to do do that-

That said- the company would go to Swapa before furloughing anyone and work out something- leaves, reduced guarantees- etc

1 capt made the mistake of saying we should furlough in 2009 so he could pick stuff up- in the crew lounge- he started to argue about it benefitting even the furlough guys bc of efficiency- profit sharing etc- and before us junior could say something several senior capts stepped in and said 'he could be first' - and eventually the chief pilot interceded as well- flatly put "WE DON'T DO THAT"

Read an article interviewing Herb- no furloughing introduces a lot of discipline into the business- every step would be taken before furloughs

I totally agree that the company will come to SWAPA before they furlough. We will be given a choice between a furlough and disposing of our rigs and line mins. That way no matter what happens it's SWAPA's fault. Honestly if I were in the comapany's position I would do the same thing. Never let a crisis go to waste even if you created the crisis. Herb and Gary have very different ideas on how to run the airline and at this point GK is running the show. How many pilots would accept a 45 TFP line total in Feb to avoid a furlough? I don't know but I believe we are about to find out.

 

[scoreboardII]

Nope, that won't happen, swapa is not going to give one inch. We've helped the company enough. What part "healthy companies which make profit don't furlough" don't you get son?

 

[GhettoBeechjet]

Nope, that won't happen, swapa is not going to give one inch. We've helped the company enough. What part "healthy companies which make profit don't furlough" don't you get son?

Well dad, why don't you explain your healthy companies theory to the UPS pilots on furlough, UPS management, or a high school economics teacher? They would tell you that the decision to furlough or not has to do with staffing, not profitability. Max profit is achieved when you create the highest revenue with the lowest expense. Carrying unneeded staff is an expense that comes right off the bottom line. If you don't have enough productive work for all your employees, you trim the head count through attrition, firing, and/or furoughs no matter how much money you're making to maximize your profits. The only exception is if the downturn will be short duration and replacing the staff you cut will in the long run be more expensive than letting them stay on. No one, so far, is arguing the point that we will be overstaffed once the transition is complete. How overstaffed and what will happen as a result of that overstaffing are the outstanding questions.

Now that being said if the company comes asking for concessions to avoid furloughs, which I STRONGLY believe they will, will SWAPA give or not? I don't know. In either case if the company follows through they win. If we give them concessions the company benfits from reduced expenses. If we don't, and they furlough, the company benefits from reduced expenses and it serves as a warning to the other employee groups.

 

[SWA Bubba]

Well dad, why don't you explain your healthy companies theory to the UPS pilots on furlough, UPS management, or a high school economics teacher? They would tell you that the decision to furlough or not has to do with staffing, not profitability. Max profit is achieved when you create the highest revenue with the lowest expense. Carrying unneeded staff is an expense that comes right off the bottom line. If you don't have enough productive work for all your employees, you trim the head count through attrition, firing, and/or furoughs no matter how much money you're making to maximize your profits. The only exception is if the downturn will be short duration and replacing the staff you cut will in the long run be more expensive than letting them stay on. No one, so far, is arguing the point that we will be overstaffed once the transition is complete. How overstaffed and what will happen as a result of that overstaffing are the outstanding questions.

Now that being said if the company comes asking for concessions to avoid furloughs, which I STRONGLY believe they will, will SWAPA give or not? I don't know. In either case if the company follows through they win. If we give them concessions the company benfits from reduced expenses. If we don't, and they furlough, the company benefits from reduced expenses and it serves as a warning to the other employee groups.

Let's see...

330 posts over the years, and every last one of them doom and gloom about "impending furloughs." Are you SURE you don't secretly work for the company's negotiating committee? Or maybe your just General Lee's evil, trouble-starting twin?

I'm sorry you're so pessimistic and sad, but other than your own dramatic conclusions from industry news, which no one else seems to agree with, do you have any actual evidence of this? Has anyone in any authority whatsoever even given the slightest hint of furloughing? I mean, other than management continually insiting that "preserving every employee's job security is the most important task," that is? ('cause we all know that whenever management says anything, the opposite must be true...)

Bubba

 

[HowardBorden]

Well dad, why don't you explain your healthy companies theory to the UPS pilots on furlough, UPS management, or a high school economics teacher? They would tell you that the decision to furlough or not has to do with staffing, not profitability. Max profit is achieved when you create the highest revenue with the lowest expense. Carrying unneeded staff is an expense that comes right off the bottom line. If you don't have enough productive work for all your employees, you trim the head count through attrition, firing, and/or furoughs no matter how much money you're making to maximize your profits. The only exception is if the downturn will be short duration and replacing the staff you cut will in the long run be more expensive than letting them stay on. No one, so far, is arguing the point that we will be overstaffed once the transition is complete. How overstaffed and what will happen as a result of that overstaffing are the outstanding questions.

Now that being said if the company comes asking for concessions to avoid furloughs, which I STRONGLY believe they will, will SWAPA give or not? I don't know. In either case if the company follows through they win. If we give them concessions the company benfits from reduced expenses. If we don't, and they furlough, the company benefits from reduced expenses and it serves as a warning to the other employee groups.

Really? Comparing the relationship that exists between labor and management at UPS to that which exists at SWA is laughable. UPS furloughed while making huge profits. Could SWA do exactly the same thing, of course but to imply SWA will employ the same tactics as UPS in dealing with labor is at very least a stretch. SWA has in the past done the right thing for their employees, I see no evidence to show that they will not continue to do so in the future. Anything of course is possible but to suggest SWA will furlough while still turning a healthy profit is certainly looking at the glass half empty side of the argument.

 

[scoreboardII]

Blam!

Swa will never furlough unless they are losing money, if you don't get that you don't get SWA.

 

[vixin]

I dont get the SWA as of late. GK and MVDV are totally different at running this ship. I have zero faith in them treating pilots fair and less trust in SWAPULL standings its ground. DO I think a furlough is coming? NO! DO I think GK doesnt give a darn about the pilots at SWA? Yes!

 

[FlyinGuy]

I for one welcome GK's challenge if he is ever that stupid to try that trick. It will fail miserably. He has already damaged so much good will between SWAPA and SWA over this deal. It is his turn to "OWN IT"!! I say if he wants a furlough, let it be on his hands.

The second that the furlough notices go out, I will do what I can to start a furlough fund for those that are on the street.

 

[maxblast72]

With hundreds of AirTran guys going to Delta over the next 2 years, we will probably have to do some hiring during the transition period

 

[scoreboardII]

I agree with the notion that GK merely thinks of pilots as a cost center in his accountants basket of costs to be controlled. But that does not change the fact he is SWA, and if he furloughs, he will have killed one hundred percent of what this company stands for, so no furloughs.



Barring world war three or Obama thinking he can spend his way to prosperity.

 

[vixin]

The only reason why he wouldnt furlough is because the company is making money. However we as a pilot group have already had lines reduced...I know seasonal it it is getting better but, it has been worse then previous years. We have given him plenty for free and I for one will not do a single thing else for him. The picture just doesnt look as rosey in my eyes. While I will prpbably be fine barring WW lll or The moron in the White house. It goes to mention this place has changed a lot in the last couple of years and NOT for the better.

 

[waveflyer]

I actually do think we'll see some FOs move over to legacies-not necessarily junior either- and if they do it quick enough it could work out for them- capt at the new united is down to 2005 hires- in class soon
The new American has all kinds of attrition
Delta's probably the least robust and it will be hiring a seniority significant wave

I just encourage anybody not happy or senior to me to make that move

GK absolutely does not think of any pilot as a cost unit- he cares about people including pilots. He IS a numbers guy, however. Thats his skill, and worldview. We can disrespect that, but he thinks he can best serve the people of swa by focusing on the numbers- and in part, he's right-
We better not ignore them, ever.

Just don't reduce him to a Horton level bc he's not Herb, that's ridiculously unfair to the guy- the simple truth is he could be making a LOT more money at many other places-
I don't kiss his arse, he's not my father, I welcome the challenge in the negotiation as well and feel we've given a whole lot for free-
But I've been around the airline block enough to know we're lucky to have him- very lucky

If you feel differently, you ought to get off the Internet and dive into the real world and SWA a bit more

 

[fr8doggie]

I don't kiss his arse, he's not my father, I welcome the challenge in the negotiation as well and feel we've given a whole lot for free-

Just remember to take the first offer because any subsequent offers will be much worse.:laugh:

Fr8doggie

 

[Luv2BFlyin]

With hundreds of AirTran guys going to Delta over the next 2 years, we will probably have to do some hiring during the transition period

If it was 300 (combined between OAT and RSW), that would only be about 4% of the total pilot group. Wouldn't be surprised to see that many leave for various other carriers/employment opportunities.

SWA would be happy to see that many leave and wouldn't hire to replace them in the next few years.

 

[madjack]

Just remember to let the mbrship have a vote!