Fubijaakr
Seniority is Forever
- Joined
- Dec 7, 2003
- Posts
- 2,537
Lear, you realize the article states the leases go out to 2024 right?.
You do know that leases can be renegotiated and/or terminated with a payment, right?
Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Lear, you realize the article states the leases go out to 2024 right?.
You know as I read this thread, I can't blame the AT guy's for what thier MEC is doing. Nor blame them for the fear they have. They are just CYA'ing them selfs. That is fair enough.
Fly-Diver, you guys frequently ask Lear for his opinion on this stuff. When he (politely and articulately) presents some specific items he has concerns with, he's suddenly a "bad guy" and you want to "play HR" with him?
I think Lear has valid concerns...but I would also state that this deal cannot be risk free...just .02c:
- Mr Kelly bought AAI to eliminate a competitor, grow relatively quickly and with less capital expenditure and risk
- Mr Kelly (and Wall St) are not sure that SWA can operate the 717 profitably in our sysem at the SWA pay rates
- There is risk in arbitration for the AT pilots, SWAPA and SWA will negotiate the 717 pay rates...
The AIP as it stands has one pay rate for all SWA aircraft, that deal was bought to the table by Mr Kelly during negotiations...that deal comes off the tabel if we go to arbitration.
Sure there is risk for SWA pilots at arbitration, especially if the seniority list goes DOH to relative seniority, but arbitration is not a slam dunk or risk free venture for the AAI pilots either...
. See it for what it is, public negotiations with Boeing.
You cannot increase fares unilaterally. Costs are already high and you better believe GK doesn't look at a 1% increase in costs as "tiny." Do you know how fuel hedges work? Do you understand that hedging fuel/heating oil, et al costs a significant amount of money? What if you hedge at $110 a barrel and oil is $85?All other points aside, this argument about how they can not operate 717's profitably is BS. Pilot pay is a tiny percentage of operating cost. If you increase hourly rates by 100/hr that is less than $1/ticket on the 717. Fuel by far is our largest expense. With access to Southwest fuel hedges we will be more than able to offset the operating cost increase.They just really do not want three aircraft types going forward. See it for what it is, public negotiations with Boeing.
All other points aside, this argument about how they can not operate 717's profitably is BS. Pilot pay is a tiny percentage of operating cost. If you increase hourly rates by 100/hr that is less than $1/ticket on the 717. Fuel by far is our largest expense. With access to Southwest fuel hedges we will be more than able to offset the operating cost increase.They just really do not want three aircraft types going forward. See it for what it is, public negotiations with Boeing.
You cannot increase fares unilaterally. Costs are already high and you better believe GK doesn't look at a 1% increase in costs as "tiny." Do you know how fuel hedges work? YES Do you understand that hedging fuel/heating oil, et al costs a significant amount of money? YES What if you hedge at $110 a barrel and oil is $85?You loose money.
How many early termination fee's has Gary and company ever paid? I'll help you, none.You do know that leases can be renegotiated and/or terminated with a payment, right?
Not true, SWA hedges for the jets they have, the AT jets are as yet unhedged under the SWA banner. Going forward maybe, today, not so much.With access to Southwest fuel hedges we will be more than able to offset the operating cost increase. .