The Victors
Well-known member
- Joined
- Mar 23, 2006
- Posts
- 455
Just Wwait & See-
This once again bears out the fact that whoever is on top today will be sucking hind tit tomorrow. Southwest was stupid by expanding so fast. They should have stayed the size they were.
Anyone who has taken an Economics class knows about "economies of scale" Southwest has grown beyond theirs, and they will soon be in the same boat as all the other majors unless they make some changes.
As for the guy above who claims they are spending 1.4 Billion a year on new planes-he is smoking something. No airline pays cash to own its planes outright. They pay the leasing company who actually owns the plans over a period of many years. This way they have to pay very little upfront for new wheels and they also are not exposed to so much tax as they would be if all their assets were owned before they had depreciated.
I would bet that in a few years Southwest will either have to make drastic changes and be more like they used to be in terms of route structure and size, or they will be in bankruptcy as well. Never assume that any airliine will be on top for long.
Your above post really shows your lack of intelligence in regards to swa. BTW, I know it's hard to understand, but they do pay cash for the a/c. Every, I repeat, every 700 is OWNED outright. Don't remember exactly, but I think it's only like 36 300-500's are leased.