LUV Adjusts Fuel-Hedging Strategy

[waveflyer]

ALSF 2,

Since 2003, LUV has not been so much of a great airline as a great fuel hedging company. The hedges have masked a lot of their internal problems.

AA767AV8TOR

What internal problems are those? Seems to me the only thing they don't do a LOT better than every other airline is squeeze concessions out of employees.

 

[RP170]

I know quite a few pilots that went to Netjets while furloughed only to return to their mainline airline when recalled.

Many have been furloughed again after returning. Some guys just have to fly the heavy iron and could care less about job security, industry leading pay, getting payed to commute on company time from wherever you want to live, and amazing benefits. I guess it's not for everyone.

 

[contrail67]

Many have been furloughed again after returning. Some guys just have to fly the heavy iron and could care less about job security, industry leading pay, getting payed to commute on company time from wherever you want to live, and amazing benefits. I guess it's not for everyone.

They probably went back because they liked the airline life better....one cannot see a furlough coming.
If they liked the Net Jets life they would have stayed.

 

[Sedona16]

ALSF 2,

The problem of the returned fuel hedges for LUV is now their company is more or less on an equal footing with the rest of the industry. This has not been the case the last five years. Since 2003, LUV has not been so much of a great airline as a great fuel hedging company. The hedges have masked a lot of their internal problems.

As is well known around here, LUV’s fuel hedging strategy (whether by blind luck or by skill and cunning) created major headaches for the rest industry when Southwest was able to keep prices artificially low which continued to put the hurt on the rest of us as we tried to climb out of the 911 hole.

Now that advantage has been largely negated. With the economy in the dumps, their cash dwindling, and gas prices increasing; the next five years for Southwest will be very different from the last five.

I’m on record in this forum as being very disappointed with the direction SWAPA took when they had their “time in the sun” to do some very positives things for our profession and to set some high benchmarks for us all to aim for but choose instead to push toxic items such as Age 65. Now their window of opportunity is starting to close if not slamming shut.

I just hope SWAPA is able to tow the line on what their management wants to do with international code share. If your union losses on that one, we’re all pretty much screwed.

Because of the continuing threat to our careers, APA has taken a very hard line on the AMR/BA/IBERIA deal. Over the years, code sharing has proven to be of very little value for the American Airline pilots in regards to pay, growth, and jobs and instead has proven to be a big win for management and the consumer. It like we’re on a slow melting iceberg. Perhaps the Northwest of UAL guys could chime in here on how their codesharing has positively or negatively impacted their careers.

Over the next few years, SWAPA will be severely tested. I sincerely wish them the best of luck. Our careers depend on it.

AA767AV8TOR

I couldn't agree more. Of course each of us has a natural tendancy to pull for those who help us and hope those that hurt us will go away. SWA on the one hand after riding the coat tails of other legacies (no point in disputing this as their own union recently admitted this in a letter to the SWA pilot group) in establishing their 737 pay rates have managed to hold on to those rates for the time being. Beyond this one item Southwest as an airline and pilot group has brought little to the pilot community.

Southwest as an airline has done alot to hurt most carriers. Its funny to contrast many SWA pilots from mid to late nineties to those we see now. The comments and arrogance is reminscent of United pilots of the late 1990's era. Those that come here very often have no doubt seen the multiple posts of SWA guys bragging about their "amazing" pay and "the good life" and their job security and how every other pilot in the industry should be jealous as they look at those at SWA with the "Brass Ring". On top of this they speak as if they are part of the management team, as if they actually are controlling the airline and its future with statements that start with "we will never" or "our plan is". There have been discussions where SWA pilots like to talk about "supply and demand" and "hey if it means going into Denver and burning out the incumbants and letting everybody know who is the bad A bomb diggity king of the airline world and that happens to cost other pilots their jobs they will tell you with a smirk on their face "thats just the way the ball bounces".

I think there are good guys over at SWA. I have friends there who I flew with at the regionals that i knew were good guys. As a whole I think GK is busy trying to manage and CHANGE an airline that finds itself in a much different postion than it has been in before. Not as many places to grow, a rapidly changing industry where the cost playing field has been leveled alot. Many airlines adding ammenities that customers in the 21st century appreciate (live TV, WiFi, Texting, better seats and frequent flyer miles that can take you anywhere in the world).

I think there are a few Southwest guys here that get it and realize the huge threat outsourcing flying is whether its an RJ or 737...they are good students of where legacy pilots went wrong and the damage it caused.

I know every time someone here says southwest is not the darling of the industry it once was the southwest band wagon come marching in with "we will always be on top....we have huge pricing advantages....we will destroy anyone who gets in our way.....we own all our planes and Herb errrr Collene errrr GK will always take care of us. We are very happy no one can every match our hard work or happiness and dominance. All I am going to say is this industry is VERY dynamic right now, there is not very much low hanging fruit left to pick. The most arrogant and cocky groups out there that say "it cant happen to us" are the ones who need to be looking over their should the most.

 

[Dumb Pilot]

Many have been furloughed again after returning. Some guys just have to fly the heavy iron and could care less about job security, industry leading pay, getting payed to commute on company time from wherever you want to live, and amazing benefits. I guess it's not for everyone.

Over half of my 26 years in the business was spent in corporate flying, I did it enough to know that it is definitely not for me.

 

[jimcav]

Many have been furloughed again after returning. Some guys just have to fly the heavy iron and could care less about job security, industry leading pay, getting payed to commute on company time from wherever you want to live, and amazing benefits. I guess it's not for everyone.

When you compare it to a commuter it is probably a wonderful job. However 7 on 7 off ain't for everybody. I sure as hell would have a hard time doing it.