Gee, imagine that!

[whymeworry?]

I had 10 yards of concrete delivered for a construction project. As I'm reading the invoice to write the check, I notice an extra "10 fuel surcharge" fee. I chastised the driver that nobody informed me of the $10 fee. To which he replied, oh yeah, they're charging everyone extra becuase fuel is going up again. Really? ya don't say.

Imagine that! Management at my local concrete company has the sense to charge more when their costs increase. Certainly they face the same competition as US airlines do, 5 concrete companies in my small town and each pass on the energy burden to their customers.

 

[Dizel8]

Well, I recently got a room in Nevada, the room was about $40 and they charged an additional $3.25 in energy surcharge. Not sure what excatly I was paying for, guess I should have left the iron and all the lights on. Mind you, they only mentioned this fee as I checked in. Had they simply posted the room as 43.25 I wouldn't have minded, but I found their approach to the problem a bit tacky!

I read a story, how someone who rented a bulldozer was charged with a $100 "security" fee.

The same article said, that some companies appeared to be tacking on fees which were was above and beyond reasonable.

My favorite is hotels who charge an occupancy tax!

 

[Rossa]

Obviously the local concrete guys are applying common sense....................They don't stand a chance in the Airline industry with that kind of thinking!!!!!!!!!

 

[aa73]

Imagine that! Management at my local concrete company has the sense to charge more when their costs increase. Certainly they face the same competition as US airlines do, 5 concrete companies in my small town and each pass on the energy burden to their customers.

That's simply because there is no other concrete company that has hedged fuel at a much lower price, and therefore would've been undercutting all the other concrete companies.

As long as SWA keeps hedging, airline fares will remain low. That simple.

(SWA guys, this ain't a slam!)

 

[G4G5]

I had 10 yards of concrete delivered for a construction project. As I'm reading the invoice to write the check, I notice an extra "10 fuel surcharge" fee. I chastised the driver that nobody informed me of the $10 fee. To which he replied, oh yeah, they're charging everyone extra becuase fuel is going up again. Really? ya don't say.

Imagine that! Management at my local concrete company has the sense to charge more when their costs increase. Certainly they face the same competition as US airlines do, 5 concrete companies in my small town and each pass on the energy burden to their customers.

AKA Tony Soprano's Vig

 

[Delville]

As long as SWA keeps hedging, airline fares will remain low. That simple.

I don't think it's THAT simple, but I definitely agree that SWA is a (if not THE) primary factor in why the industry, as a whole, cannot raise fares, especially domestically. We also have to recognize the effect that companies operating under bankruptcy protection have. I also agree it is not a slam on SWA, but an acknowledgement that their management has been prescient in handling their hedge program.

 

[capt. megadeth]

I don't think it's THAT simple, but I definitely agree that SWA is a (if not THE) primary factor in why the industry, as a whole, cannot raise fares, especially domestically. We also have to recognize the effect that companies operating under bankruptcy protection have. I also agree it is not a slam on SWA, but an acknowledgement that their management has been prescient in handling their hedge program.

Why is it that just because SWA doesn't raise fares, everyone else can't? I mean let's say you have 5 flights in a day from town X. 2 are SWA which are usually packed anyways, what are the other people that want to fly going to do? They will pay the extra $10 to go on the other airline. Even if it takes a while to set in and they lose some bookings, who cares? It's not like they are not bleeding anyways. What's another 100 million?

 

[Blacktop]

If SWA raised ticket prices then the other Majors would probably have an easier road ahead and possibly survive in this industry. The problem with this logic is that the new generation of low wage LCC carriers could then undercut everyone including SWA. It would also allow the new starts to be more sucessful. In the long run it would replace good paying jobs with the $hit jobs that are becoming the standard.

In all other industries the larger established companies have an advantage over new starts and smaller companies. This keeps the industry stable. Currently, SWA seems to be the only established company with any kind of advantage over these low wage companies. Let's hope that the legacies can also find a way to turn a profit while offering fair wages. We need SWA as a stabilizer, otherwise this industry will become a turnstile of zero profit companies trying to run each other out of buisiness.

Truth is that all pilots should be hoping for the legacies and other higher paying companies to kick a$$. If they don't then you will be facing a future of less pay, less days off, less benefits, ect. Don't think that your union will help either. It will mean nothing to have a union when your non-union 500/50 competion drives you out of buisiness. You will become a Walmart employee clone. Maybe we could all get some nice vests with fun buttons and retired legacy guys could greet customers at the gates to make a little money to compensate for their lost retirements.

So I will be the first on this site to say good luck to all you legacy guys, and keep it up SWA because the future of the industry is counting on you.

As for hedging. All companies have had the same opportunities to hedge as SWA does. In fact you can hedge fuel for your Toyota if you want. If your company has not been sucessful at hedging then you should take it up with your management.

 

[(o) (o)]

The airlines have to make it look bad to get all of ya'll to agree to work for peanuts.

Once that's settled, watch for revenue to climb.

 

[Dave Siegel]

The airlines have to make it look bad to get all of ya'll to agree to work for peanuts.

Once that's settled, watch for revenue to climb.

Hi, it's Dave!

When you pilots are carrying our golf clubs, Frank and I both ask that, in the future, you keep our discussions private. Although everything you're saying is true, it slightly contradicts our public message. During these troubling economic times, only a drastic reduction in labor costs can turn this industry around. Since the pilots make the most, then logically we expect them to sacrifice the most. After all, it's for a good cause.

 

[Tejas-Jet]

As long as SWA keeps hedging, airline fares will remain low. That simple.
(SWA guys, this ain't a slam!)

Here's the rub....if you can call it that....SWA is not sitting back and enjoying the rewards of their hedging program....they are still working on improving their hedging position....it is a never ending work in progress....Those fuel inventory folks must be burning the midnight oil <no pun> working on this...

Tejas

 

[Palomino]

That's simply because there is no other concrete company that has hedged fuel at a much lower price, and therefore would've been undercutting all the other concrete companies.

As long as SWA keeps hedging, airline fares will remain low. That simple.

(SWA guys, this ain't a slam!)

i disagree. SWA hedging has always been a known. the crippling factor in airlines' biz models today is simply the current cost of fuel. hedging means nothing if the price of fuel isn't outrageously high.

SWA has been hedging fuel for a long time...even back when the legacies were turning $1billion dollar profits. Legacies are overwhelmed by the current price of fuel and are unable to afford to hedge with the liquid cash on hand.

Fuel hedging is a big gamble. SWA has gambled and won big during these times. they've always done well at the game. Their margin hopefully won't be as high in the future, but at a fair clip. The cost of fuel is unfair, but not enough legacies paid the price to make it fair.

Should legacies hedge more? that's tough to guess. i'm sure none of them are able to pull weight in the hedging market as well as SWA. SWA doesn't specialize in anything more important than cost control. fuel hedging has given them the edge for now. it won't last forever. and i sure hope these fuel prices keep coming down as they seem to be.

 

[Tejas-Jet]

I chastised the driver that nobody informed me of the $10 fee. To which he replied, oh yeah, they're charging everyone extra becuase fuel is going up again. Really? ya don't say.

Imagine that! Management at my local concrete company has the sense to charge more when their costs increase. Certainly they face the same competition as US airlines do, 5 concrete companies in my small town and each pass on the energy burden to their customers.

Hooooo....Great idea....now, here's what you can do with this .....call the VP of Finance or the VP of Marketing at your airline. Make an appointment with them for about 20-30 minutes of their time. Maybe even a phone call.....

Lay this idea on them about increasing fares to offset the price of rising fuel. You may even want to tell them that your local concrete company has been successful doing the same thing. Ask why the airline can't do the same thing....

Let us know what their response is....and how they react to your proposal.

Tejas

 

[Capi_Cafre']

That's simply because there is no other concrete company that has hedged fuel at a much lower price, and therefore would've been undercutting all the other concrete companies.

As long as SWA keeps hedging, airline fares will remain low. That simple.

(SWA guys, this ain't a slam!)

....not to mention the fact that there isn't a huge supply of dorks out there who think that driving a cement truck would be soooooo cool that they'd do it for free.

 

[JetMonkey]

I had 10 yards of concrete delivered for a construction project. As I'm reading the invoice to write the check, I notice an extra "10 fuel surcharge" fee. I chastised the driver that nobody informed me of the $10 fee. To which he replied, oh yeah, they're charging everyone extra becuase fuel is going up again. Really? ya don't say..

I'm just curious how much you paid for your concrete and where are you, if you don't mind me asking. 3 months ago I had 10 yards of concrete poured to double my carport. I'm out in Arizona and I thought the price I paid (100.00 per yard) was really lucky considering there was practically no concrete anywhere to be found.