Southwest Questions

[TriStar_drvr]

Thanks XHerc. I have to admit I was shaking my head halfway through your post explaining the trip system. Leave it to airline management to make something that should be simple into something so complicated.

I gave up trying to understand the trip system. I figure that most airline pilots are like me, and try to work as little as possible. So, I just take the monthly guarantee whether it's in trips or hours, and multiply it by the corresponding rate, to see what the laziest pilot for either airline would earn in a month. I'll let the overachievers who like to work overtime worry about how many minutes or miles extra they have to fly to earn an extra buck.

Thanks again,

Brad

 

[shagadelic]

Sorry folks, I've been on the road, but most of the questions looked answered...

I included the contract proposal because I fully expect it to pass, I've heard polling numbers place it around 65/35 FOR. (though I will not be voting for it; that would be another thread...)

The trip rates make it seem we get paid less than we really do. If you are comparing hours to trips you are really messing up. Last month I flew 77.35 hours. But I was paid for 102.7 trips. I make 55.51 per trip right now. That's the same as 73.70/hour for last month. It will vary from month to month. In May, I flew 94 trips and blocked 79.3 which equated to about 65 an hour. So when comparing keep that in mind. A good gouge is add 14% to the trip rate.

By the end of this contract in 06 (should it pass), a 12 year captain will make the equivalent of $200 per hour.

Profit sharing is up to the company and I don't know of any contractual guidelines to that.

 

[shagadelic]

Flychicaga,
The overnights vary, and I don't know the official stats, if there are any. However, from my experience, the low end is around 12 hours, the high end is around 20 hours. Most are around 14-16 hours.

 

[Gumbydammit]

How are your hotels on overnights? Are we talking Holiday Inn, Radisson, etc? For example, where do you guys stay in San Antonio? or San Diego? Just looking for an idea of what kind of places you get...thanks!

 

[shagadelic]

We stay at the Hilton in San Antonio, and Sheraton in San Diego. It depends on the city obviously, but it is pilots and flight attendants who are on the committees that chose the hotels, so the discounts and amenities are generally very good.

 

[Gumbydammit]

Awesome info guys...this forum is great...thanks!

 

[PTinbound]

In SAT, is that the Hilton on the riverwalk?

 

[Slug]

nope

airport hilton sat

 

[box]

Overnights in Las Vegas

Which hotel(s) do SWA pilots stay at for overnights in Las Vegas?

 

[tredding@swa]

Stock Options 101

A "Stock Option" is the RIGHT (or OPTION) to purchase x # of shares of a company's stock at a pre-determined price, the "STRIKE price".

STOCK OPTIONS are granted (given) to an individual for (usually) a set period of time. During this time you will "VEST". VESTING means you have to wait for a date to pass, then your option(s) become EXCERCISABLE. There may be another date when your option to buy expires... if you fail to purchase your shares prior to the expiration date (excercise your options) you lose the ability to buy those shares at the strike price, they expire - you can't have them - you screwed up!

"Most" companies will extend the expiration date several years beyond the vested date so your options have time to grow in value. IF the current price of the stock is trading BELOW your strike price the options are considered WORTHLESS.

The theory is that a company is giving you something that YOU hope will be worth more than the strike price at a future date. Deferred compensation' if you will. It is the corporate version of the "carrot and the stick".

SO - if a company "grants" you an OPTION to purchase 1000 shares at a STRIKE PRICE of $10. Say you VEST in 2 years. On the anniversary of your GRANT 2 years later, the stock is trading at $15/share. You EXCERCISE your OPTIONS, buy the stock at $10. You now have to give the broker $10,000 to pay for the purchase. However, since MOST people do not have the cash laying around, (especially pilots) most companies have an arrangment with a Brokerage Firm (I believe that SWA uses Morgan Stanley) where you can do what is known as a CASHLESS EXCERCISE. In your brokerage account (yes you have to 1st set up the account with the company's broker of choice) they will "loan" you the cash to purchase the shares, then you immediately sell them. In our hypothetical above, you would net a $5,000 profit.

You have several choices as to how you structure your purchase of your shares;
You can elect to sell only the # of shares to repay the loan - 667 shares in our example=$10,000. You would then keep the remaining 333 shares free and clear!! OR, write a check to the broker for $10,000 and keep all 1,000 shares. Or, as stated above, sell all 1000 shares and walk with $5000 cash.

I hope that my years as an investment advisor help shed some light on this cornfusing topic?!?!?

 

[SWA2000]

In LAS we stay at the Alexis Park, Terrible's, Polo Towers.

In the cities where we have numerous crews overnighting the hotel you stay at depends whether you are on a AM pairing or PM pairing.