Could Southwest's run of profitability be coming to an end?

[Tanker Clown]

Interesting view, however, SW was the first airline to lower the bar back in the 70's and 80's when their pilots were the lowest paid in the industry. Those low pilot wages allowed them to grow to the airline they are today. They only look good now because they are higher than the rest of the industry.

So, what your saying is, you'd like to see them get theirs and take a paycut? Good idea. Ha Ha! They got theirs. Then you can go to your section 6 at DAL or wherever and when you want a raise they can say, "You already make more than SWA."

Good plan dude. You'll have a few months gloating and less money in the long run. How much is spite worth to you?

 

[The Victors]

Interesting view, however, SW was the first airline to lower the bar back in the 70's and 80's when their pilots were the lowest paid in the industry. Those low pilot wages allowed them to grow to the airline they are today. They only look good now because they are higher than the rest of the industry. Also the highest paid executive in airline history is Herb Kelleher.

That's fine if you chose to look 30-40 years into the past for your opinions. I just think we need to focus on positive changes we need to make today.

 

[328dude]

Also the highest paid executive in airline history is Herb Kelleher.

Key word is history. Herb has been there from the start. Many more CEO's at airlines had made their millions than bolted and don't have the history to stay in one place.

You guys keep playing CEO musical chairs, that's ok with me. I think you will find that the actual payouts to all the CEO's at each airline made a lot more than herb during the same amount of years.

Again, flawed thinking.

 

[momalley81]

the highest paid executive in airline history is Herb Kelleher.

Totally completely false.

Where do you get this stuff?

Why do you make this stuff up?

 

[turn&pull]

The best way to guess what will happen in the future is to study the past. Southwest has a strong history of managing well and treating their employees fairly. Will it always be this way here? Time will tell.

I hope we continue to work together and thrive but I'm not going to go buy the yaught counting on the continued success of SWA.

I've never flown to Europe or Aisa as a pilot and I suppose that if I had the opportunity to try it I would. However, right now being based in BWI, I don't even like going to the west coast. My favorite trips are east coast PM trips that start at 2pm and have me in the bar by 11Pm. Right now I feel like I could do that forever and be happy. Time will tell.

 

[YourPilotFriend]

Totally completely false.

Where do you get this stuff?

Why do you make this stuff up?

Prove I am wrong. He has made the most money from an American based passenger carrier.

 

[Quimby]

Interesting view, however, SW was the first airline to lower the bar back in the 70's and 80's when their pilots were the lowest paid in the industry. Those low pilot wages allowed them to grow to the airline they are today. They only look good now because they are higher than the rest of the industry. Also the highest paid executive in airline history is Herb Kelleher.

You're right. You nailed it. Everything you've said is spot on. You're one smart cookie.

 

[momalley81]

Prove I am wrong. He has made the most money from an American based passenger carrier.

It's really not all that hard to find the info. Why you continue to spew the wrong information is beyond me.

Here is Kelly's Compensation:

http://www.unitedafa.org/news/ceo_chart.asp

Gary's, Collen's and Herb's Compensation vs Arpey at AMR:

Airline CEO compensation numbers

11:46 AM Sun, Nov 11, 2007 | Permalink
Terry Maxon E-mail

News tips


A communications guy at the Allied Pilots Association passed on some numbers Sunday morning, none of them new:


AMR chairman, president and CEO Gerard Arpey's total compensation for 2006: $10,201,059.


Southwest chairman Herb Kelleher's total compensation for 2006: $1,365,000.

Southwest president Colleen Barrett's total compensation for 2006: $1,256,935.

Southwest CEO Gary Kelly's total compensation for 2006: $1,405,883.


So the AMR chairman, CEO and president (one person) made $10,201,059, and the chairman, CEO and president of Southwest (three people) made $4,027,818.


Breaking that down, Mr. Arpey had $581,534 in salary; the Southwest trio had $1,229,347. In bonuses, Mr. Arpey got nothing; the Southwest trio got $1,277,000.


So in salary and bonuses, Mr. Arpey earned $581,534; the Southwest trio earned $2,506,347.


Under the Securities and Exchange Commission rules on reporting executive compensation, Mr. Arpey's total soared primarily on the assumed values of stock awards ($8,558,878) and option awards ($851,398). The option awards for the



Southwest trio totaled only $1,180,157.
Apropo of nothing, SEC filings indicate that Mr. Kelleher has sold 425,000 shares of Southwest stock this year for $6.46 million. At the start of the year, he had around 3.47 million shares of Southwest stock; after some Oct. 30 sales, his holdings were down to 3.05 million shares.


Mr. Kelleher exercised options in July to acquire 60,000 shares at $16.40. His average sale price this year has been about $15.21 a share. His October sales were for $14 to $14.10, depending on the day.


Mr. Arpey in April received and quickly sold 207,900 shares he received in a stock performance plan that riled the unions and other employees. He grossed $6.18 million from those shares, plus another $1.51 million from stock options he exercised for about $438,000.

 

[328dude]

That's what we call "Owned" lady's and lady's. Nice work dude.

 

[Jim Smyth]

Interesting view, however, SW was the first airline to lower the bar back in the 70's and 80's when their pilots were the lowest paid in the industry. Those low pilot wages allowed them to grow to the airline they are today. They only look good now because they are higher than the rest of the industry. Also the highest paid executive in airline history is Herb Kelleher.

Heres another eduction lesson for you.

Its not unusual to be low paid with any start up company. It helps the company grow! Without it you won't survive for long. Both you and the company benefit from this long term if your successful.

Those low paid Piiots that rolled the dice got "stock/profit sharing" instead of the high pay and juicy pensions the other airlines had. The one's retiring today are leaving typically with 3-4 Million cash! Highest one I heard of was 7+ Million.

Yep, your right, bad decision on there part working for that low pay.