So much for the huge growth rumor at SW

[On Your Six]

Delta Contract almost up but it is going to be a fight to get more money.

According to Delta 10-Q filed last week, Delta had $3.8 billion cash and short term investments and over $13 billion in long term debt (over 3 times as much debt as cash). Delta's operating profit for the first 6 months of 2011 ($389 million) wasn't even enough to pay the interest bill for the first 6 months of 2011 (a below the operating line expense of $454 million). Those numbers don't point to a great contract coming anytime soon.

For comparison, SWA made a $321 million operating profit for the first 6 months of 2011 and paid only $94 million in interests payments. SWA is the only airline out of the big 5 that has more cash and short term investment ($4.4 billion) than long term debt ($3.2)

Hard to argue with the arithmetic but I am sure someone will.

Great speculation Neal Cavuto. You really don't know, just guessing. DL actually paid down $2 billion in debt last year, and is on track to bring it down to $10 billion within the next year or so, which has already brought down the yearly interest payments. DL made $950 million in bag fees alone last year, whereas SWA made zero. And, SWA pays more for gas now than the legacies (stated by GK in Q2 numbers brief), and will have to give huge raises to all AT employees shortly, which may take away the LCC moniker it has always enjoyed. Son, you need to worry about your own deal and this SLI fiasco you have been dealt. Another thread had an article too about SWA and 717s, and it didn't sound as rosy as previous posts. Good luck Kramer. Godspeed!




OYS

 

[scoreboardII]

Chief executive officer Gary Kelly said yesterday that "we don't see a reason to keep the 717s longer than we have to, or find a unique replacement for the 717 that is anything other than the 737".


http://www.flightglobal.com/articles/2011/08/05/360443/southwest-appears-less-bullish-on-717.html

 

[Lear70]

Chief executive officer Gary Kelly said yesterday that "we don't see a reason to keep the 717s longer than we have to, or find a unique replacement for the 717 that is anything other than the 737".


http://www.flightglobal.com/articles/2011/08/05/360443/southwest-appears-less-bullish-on-717.html

Bad timing on all those disclosures. Has all the pilots thinking much harder about being at the bottom of the list...

 

[embraerdriver]

Thats the icing on the cake for me.........

 

[redflyer65]

Aren't there enough combined (SW and AAI) orders to easily replace the 717 on a scheduled basis?

RF

 

[Fubijaakr]

Bad timing on all those disclosures. Has all the pilots thinking much harder about being at the bottom of the list...

Exactly. However, it could be planned for a different reason. He wants this to go to arbitration too.

That way the SWA f/os can be upset at the arbitrator and not the company.

 

[waveflyer]

Heard it said really well today- if you guys want to treat GK with all the suspicion of just any standard airline exec, at some point he might just cut his losses and treat you like any old airline employee.

What's he on record as saying- he wants us to be proud of how we handled this acquisition and how we treated each other during it.

He can't tell us everything- but I'm learning he says what he means.

Besides- how does voting no help out the 717 situation.

 

[Fubijaakr]

Aren't there enough combined (SW and AAI) orders to easily replace the 717 on a scheduled basis?

RF

Probably, but it all depends on the placement on the Boeing line. Personally, I think the AAI order schedule was one of the big selling points for the merger.

 

[Lear70]

Aren't there enough combined (SW and AAI) orders to easily replace the 717 on a scheduled basis?

RF

Yes, but the language in SL9 doesn't require integration of the 717 fleet. Complete Operational Integration can be delayed indefinitely upon agreement between SWAPA and SWA.

If COI doesn't happen before the 717's are integrated, there's nothing that says the pilots on them get to come over to new 737's as they are replaced.

Even if they did, are there enough scheduled deliveries to cover both the scheduled 737-300 AND 717 retirements combined simultaneously? I don't know the answer to that one, but if the first issue above is covered satisfactorily in the 4-party agreement, then this needs to be answered before the 717 folks can relax.

Lots of moving parts. Not that any of us THINK SWA plans on furloughing anyone, and in arbitration no one knows how any protections would play out, except overall better seniority as a buffer, but better to make sure it's a covered contingency.

 

[General Lee]

AAI relative seniority was worth $ZZZ.ZZ

SWAPA relative seniority is worth 1.A X $ZZZ.ZZ

Where "A" equals the difference in contract value.

For an FO the difference was probably about 9 and a CA about 5.

Seniority at AAI was worth less and that is why you are giving up "seniority".

Can't have it all ladies.

Arbitrators don't seem to care too much about payrates or dollar values. The Colgan pilots were paid among the worst in all the regionals, yet they were placed evenly through the PNCL and Mesaba combined list. The DL/NWA merger had a joint contract done FIRST, with everyone on the same type planes getting equal pay, before the SLI was decided by the 3 arbitrators. Hmmmm. I don't think your higher pay and benefits would matter too much to the arbitrators.


Bye Bye---General Lee

 

[Fubijaakr]

What's he on record as saying- he wants us to be proud of how we handled this acquisition and how we treated each other during it. .

Apparently he doesn't read FI.com.

 

[General Lee]

Heard it said really well today- if you guys want to treat GK with all the suspicion of just any standard airline exec, at some point he might just cut his losses and treat you like any old airline employee.

What's he on record as saying- he wants us to be proud of how we handled this acquisition and how we treated each other during it.

He can't tell us everything- but I'm learning he says what he means.

Besides- how does voting no help out the 717 situation.

IF the Airtran MEC votes NO, then they can get some better language protecting everyone, including any 717 pilots. Why wouldn't anyone want that? You're all family now, live it!


Bye Bye---General Lee

 

[redflyer65]

IF the Airtran MEC votes NO, then they can get some better language protecting everyone, including any 717 pilots.

Bye Bye---General Lee

Exactly how would that play out General? Gary holds the key to better language, not SWAPA, not ALPA, and especially not the arbitor.

RF

 

[GuppyWN]

General, er OYS, will not be happy until every WN pilot is stapled.

Gup

 

[On Your Six]

Exactly how would that play out General? Gary holds the key to better language, not SWAPA, not ALPA, and especially not the arbitor.

RF

Does GK want another USAir? I don't think the investment community does.


OYS