whymeworry?
Well-known member
- Joined
- Sep 17, 2005
- Posts
- 701
Yeah, the economy.
I'm sure mismangement of those fuel hedges had nothing to do with it. Had they simply strengthened their balance sheet with those wonderful hedges of yesteryear, instead of passing on the saving to the consumer, they wouldn't be in this boat today (Bethune's written numerous articles about this fumble on SW's part).
Additionally, Folks who know airline balance sheets will tell you this is a potential double-edged sword for SW. One of the ways they keep their employee costs down is by contantly plugging new employees into the bottom of the cost structure. First year employees take 12 years to mature in terms of maxing out the payscales. If things stagnate for too long, costs will rise expotentially. Of course, we all suffer from this dilemma. But SW is more susceptible to aggravated increases in costs since their business model was built on growth.
But hey, I'm sure y'all will be fine.
BTW, don't shoot the messenger all you cultic-SWers. I know you believe your company can do no wrong. Yeah.
I'm sure mismangement of those fuel hedges had nothing to do with it. Had they simply strengthened their balance sheet with those wonderful hedges of yesteryear, instead of passing on the saving to the consumer, they wouldn't be in this boat today (Bethune's written numerous articles about this fumble on SW's part).
Additionally, Folks who know airline balance sheets will tell you this is a potential double-edged sword for SW. One of the ways they keep their employee costs down is by contantly plugging new employees into the bottom of the cost structure. First year employees take 12 years to mature in terms of maxing out the payscales. If things stagnate for too long, costs will rise expotentially. Of course, we all suffer from this dilemma. But SW is more susceptible to aggravated increases in costs since their business model was built on growth.
But hey, I'm sure y'all will be fine.
BTW, don't shoot the messenger all you cultic-SWers. I know you believe your company can do no wrong. Yeah.
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