No merger for SWA-looks like internal growth

[roughneck]

http://www.boston.com/business/ticke...est_chief.html


Quote:
Southwest Airlines Co. chief executive Gary Kelly says rising fuel costs put major pressure on the strapped airline industry to increase fares.

Kelly spoke today at a breakfast hosted by the Greater Boston Chamber of Commerce.

Kelly said it appears that every airline, except for Texas-based Southwest, will report a loss in the first quarter this year. He said that means costs will either have to go down or fares will rise - though costs already have been reduced industry-wide.

Kelly said the industry can adjust to a drop in flyers by finding innovative ways to offer air travel.

He also indicated Southwest wasn't interested in its own merger, like the Northwest-Delta deal. He said just the thought is daunting, given the complexity and upfront costs. (AP)

100 unplanned new hires for next month. I hope that is just the beginning of the RAMP UP.

 

[crxpilot]

http://www.boston.com/business/ticke...est_chief.html


Quote:
Southwest Airlines Co. chief executive Gary Kelly says rising fuel costs put major pressure on the strapped airline industry to increase fares.

Kelly spoke today at a breakfast hosted by the Greater Boston Chamber of Commerce.

Kelly said it appears that every airline, except for Texas-based Southwest, will report a loss in the first quarter this year. He said that means costs will either have to go down or fares will rise - though costs already have been reduced industry-wide.

Kelly said the industry can adjust to a drop in flyers by finding innovative ways to offer air travel.

He also indicated Southwest wasn't interested in its own merger, like the Northwest-Delta deal. He said just the thought is daunting, given the complexity and upfront costs. (AP)

100 unplanned new hires for next month. I hope that is just the beginning of the RAMP UP.

Thats a little premature.............the fat lady hasnt finished singing yet........at least not till April 29

 

[firstthird]

So, fill us in. Who reports April 29th? and why do you think they might report a profit when airtran, jetblue, and everyone else has not? It is overused and trite, but w/o the hedges, even SWA would've been in trouble this quarter. Of course, w/o the hedges, SWA would've been raising prices some time ago and the entire dynamic of the industry would be different (better? worse?). At some point, the pax go away when you raise prices. We haven't hit that point yet with the continued outrageous load factors.

So, who is this airline that looks to post a profit on April 29th?

 

[cappydd]

Gary Kelly and Company are very smart, and will onl do what SWA needs to do, if ad when that time comes. They will not merge or acquire if they dont feel it is in the best interest of Southwest to do so. That being said, I am sure they are looking at all options out there. We as employees will be the last to know.

 

[Wesb737fo]

I would agree..why would SWA want to buy, merge or whatever? I'm sure they have continued their hedging so why not just sit back and watch all the rest of us flail about.

Can someone enlighten me as to the fuel hedge thing.

I'm assuming that SWA doesn't go up to the pump where the fueler says "oh...SWA...well then you only pay half of what everyone else pays". My guess is someone in an office in DAL trades oil in the futures market and takes those profits, subtracts it from the annual fuel bill. SWA then (on paper) says we paid an equivalent amount less for gas in a certain time frame.

Bottom line....I guess they are paying this guy alot money to do this.

 

[canyonblue]

Bottom line....I guess they are paying this guy alot money to do this.

The guy primarily responsible for the past few years hedging was recently promoted to a VP position.

 

[Dan Roman]

Seems to me SWA doesn't need to merge with anyone. They have a formula that works better than any other airline, period.
I have no direct connection to SWA and no desire to work there (I'm quite happy were I'm at), however I'm laughing at these guys who feel compelled to attack SWA.
SWA employee's seem to enjoy their job better than most airline employee's, are very well compensated, have a great schedule and better job security than anyone else in the industry. What's wrong with that? They can keep doing what they have been doing and if they want to expand overwater, they could get a very good deal on a large order of 787's. I think they would gain nothing but headaches if they merged with anyone.

 

[crxpilot]

So, fill us in. Who reports April 29th? and why do you think they might report a profit when airtran, jetblue, and everyone else has not? It is overused and trite, but w/o the hedges, even SWA would've been in trouble this quarter. Of course, w/o the hedges, SWA would've been raising prices some time ago and the entire dynamic of the industry would be different (better? worse?). At some point, the pax go away when you raise prices. We haven't hit that point yet with the continued outrageous load factors.

So, who is this airline that looks to post a profit on April 29th?

Allegiant Air

 

[waveflyer]

100 unplanned new hires for next month. I hope that is just the beginning of the RAMP UP.

where did you hear this news? or is that just the may classes already announced?

 

[slaquer5]

Allegiant Air

Are you sure they are a major airline?

 

[crxpilot]

Are you sure they are a major airline?

No one has said anything about "major" airline. Gary Kelly was simply quoted as sayiing that "Kelly said it appears that every airline, except for Texas-based Southwest, will report a loss in the first quarter this year."
and then firstthird said "So, fill us in. Who reports April 29th? and why do you think they might report a profit when airtran, jetblue, and everyone else has not?
Nobody has said major..........just you.

 

[firstthird]

Well, good luck. It would be nice to have another airline also reporting a profit. all the news in this industry is so damn depressing most of the time.

Allegiant does seem to have a pretty good niche there in Vegas and supposedly Vegas is recession proof. Hopefully we won't be testing that theory anytime soon; since the economists predict 5 of every 1 recessions.

 

[Tejas-Jet]

where did you hear this news? or is that just the may classes already announced?

3 classes in April....2 in May and so far....1 in June...for now...

 

[Reelbigfish]

Well, good luck. It would be nice to have another airline also reporting a profit. all the news in this industry is so damn depressing most of the time.

Allegiant does seem to have a pretty good niche there in Vegas and supposedly Vegas is recession proof. Hopefully we won't be testing that theory anytime soon; since the economists predict 5 of every 1 recessions.

Allegiant also has a pretty stong foothold in Florida too.

Even with oil prices where they are, Allegiant has been holding its own...http://forums.flightinfo.com/showthread.php?p=1535452#post1535452

Allegiant may not be a "major", and its certainly not for everyone, but I know a lot of guys that don't want to go ANYWHERE else!

 

[slaquer5]

Allegiant may not be a "major", and its certainly not for everyone, but I know a lot of guys that don't want to go ANYWHERE else!

I in no way was trying to slam Allegiant, I thought GK was talking about major airlines. My bad

 

[FlickerFade]

Hawaiian Air.

 

[The Victors]

Allegiant also has a pretty stong foothold in Florida too.

Even with oil prices where they are, Allegiant has been holding its own...http://forums.flightinfo.com/showthread.php?p=1535452#post1535452

Allegiant may not be a "major", and its certainly not for everyone, but I know a lot of guys that don't want to go ANYWHERE else!

Guess they dont need to feed a family or worry about any hassles like medical insurance.

 

[crxpilot]

Guess they dont need to feed a family or worry about any hassles like medical insurance.

I see you are still the asswipe that you always are........

 

[The Victors]

Hey I'll admit when I'm wrong. Just post those stellar pay scales and benefits.

 

[The Victors]

If you want to set an example by accepting a job with very poor pay and bennies that's fine. I'll just give you crap when you brag about how good the company is doing expanding while screwing employees. The skybus guys sucked, but at least they were pushing for change.

 

[BEECH-SLAPPED]

Hey I'll admit when I'm wrong. Just post those stellar pay scales and benefits.

Ok, then admit that you're wrong about the Allegiant pilots not having medical insurance. We don't have to post our payscales here. Go on airlinepilotcentral.com and look for yourself. Are they fantastic? Not at all, be we improve upon them every year. In fact, add 5% to those numbers for this year and 5% for next year.

Also, it's been shown time and time again that pilot salaries have very little impact on the bottom line. Champion's payscales are lower than ours and unfortunately they are ceasing ops next month. There are many more factors besides pilot pay that make an airline successful. So, just give a little credit where credit is due.

 

[The Victors]

I didn't mean to infer there was no medical, so sorry bout that error. My point was the value of the bennies. How much does it cost a family to have medical there? What's the retirement? Crap like that....Your airline is able to be "successful" by undercutting everyone's fares. One reason for that is that your non union pilot group is willing to work for suck a$$ pay. If you work for an airline that is low balling fares, but paying it's employees a respectable wage, that's different.

 

[The Victors]

and sorry for the thread hijack...

 

[BEECH-SLAPPED]

I didn't mean to infer there was no medical, so sorry bout that error. My point was the value of the bennies. How much does it cost a family to have medical there? What's the retirement? Crap like that....Your airline is able to be "successful" by undercutting everyone's fares. One reason for that is that your non union pilot group is willing to work for suck a$$ pay. If you work for an airline that is low balling fares, but paying it's employees a respectable wage, that's different.

First of all, we have almost ZERO direct competition on all of our routes so we are not undercutting anybody. If the fares look low, that's because we do that on purpose to get the people on board, and then we sell them everything else. It's called unbundling the product and you will start seeing it more and more because it works. Also, we fly older (read that as paid for) aircraft that don't have to be flown 16 hrs a day to recoup their cost. They may burn more gas than a 737 NG but they cost about 1/10th as much. So we just match the supply with the demand.

Finally, please spare me the union thug mentality that high pay and benefits can only come from a unionized pilot group. It's just not true. If we feel that a union will be necessary in the future, then we will explore that route. In the meantime, you can keep your $2000/yr magazine. Last post on this topic from me. Congrats SWA on the continued success.

 

[Jonny Sacko]

Oh man, have they got you good.

 

[Ralph Wiggums]

Finally, please spare me the union thug mentality that high pay and benefits can only come from a unionized pilot group. It's just not true. If we feel that a union will be necessary in the future, then we will explore that route. In the meantime, you can keep your $2000/yr magazine. Last post on this topic from me. Congrats SWA on the continued success.

A third year SWA FO out earns a ten-year Allegiant captain.

In fact, a second year SWA FO who picks up a little extra flying out earns him as well.

 

[Reelbigfish]

Whatever you want to think...but do you ever wonder why there's so many happy pilots at Allegiant? ...and no, for the most part we are not a bunch of young, dumb, "willing to take anything to fly a jet" bunch of pilots. Most of us are very experienced, and most of us are very happy. That says a lot to me. It may not mean anything to you, but life is pretty good here. I'm not sure why that seems to upset so many people to hear that.

 

[waveflyer]

this sounds like a familiar conversation....

 

[crxpilot]

Lets continue this thread hijack shall we?

http://aviationblog.dallasnews.com/archives/2008/04/allegiant-flies-gas-guzzlers-m.html
Allegiant flies gas guzzlers, makes money

9:05 PM Mon, Apr 28, 2008 | Permalink | Yahoo! Buzz
Terry Maxon E-mail News tips
Allegiant Travel Co., parent of Allegiant Air and Allegiant Vacations, made money in the first quarter. Really.
Allegiant flies nothing but McDonnell Douglas MD-80s, one of the least fuel-efficient jets now flying. Its fuel expense doubled, from $31.2 million in first quarter 2007 to $63.5 million in first quarter 2008.
But its total operating revenue jumped from $84.3 million to $133.1 million, and its net income was $9,672,000, only a bit down from $9,747,000 from a year earlier.
The company chortled that its ancillary revenues, i.e., non-fare revenues, increased nearly $7 a passenger, to $25.75.
Says Andrew C. Levy, CFO & managing director - planning:

\While fuel prices were high throughout the first quarter, increases accelerated in March and have continued into April. Should record fuel prices persist, our performance in the second quarter of this year will not match our performance in the second quarter of last year. Despite the challenges of managing our business in the face of record fuel prices, we believe we can remain profitable.​