Southwest's new plan to screw Airtran pilots

[Lear70]

Give it a rest dude. The airline had enough cash. Things would have been just fine.

Go celebrate Christmas with your family or friends or coworkers or your closest Chinese restaurant. Fa ra ra ra ra and all that stuff.

 

[SWA/FO]

Give it a rest dude. The airline had enough cash. Things would have been just fine.

Go celebrate Christmas with your family or friends or coworkers or your closest Chinese restaurant. Fa ra ra ra ra and all that stuff.

just dodging the question! ha...

 

[Lear70]

just dodging the question! ha...

No, I answered it. You said "someone said..." without giving source or specifics. I answered in kind.

Those of us well-versed in the company financials have answered your question and will now go enjoy our holiday with our families. Not going to continue to engage you.

Merry Christmas. Happy New Year.

 

[madjack]

As someone wisely stated a few pages ago...no one will be able to convince the other side to change their opinions on SWA/AAI...the best advice is to acknowledge each other's position (not agree) and try to find common ground going forward.

 

[scoreboardII]

No, cash from a loan appears as both cash and debt.

No, cash is cash. That was the question. Debt from a loan is under another column. They meet in the middle as the cost of getting the cash is as a debt, but cash on hand is cash on hand.

When you take $50 out of your ATM and used the credit card function do you tell yourself, "I can't spend that now because it created a debt", or do you buy a few beers and dinner?

 

[PCL_128]

You just don't understand how a corporate balance sheet works. When you take out a loan (as long as it's a loan, and not just a line of credit), then it appears as both cash and a liability (debt).

 

[scoreboardII]

dude cut the condescending crap, I know balance sheets.

We are talking right by each other, cash is cash, forget the debt part of the equation. If you have X amount of cash on hand, it's cash for your use. Thats what a corporate balance sheet looks like.

Thats what started this whole discussion "how much cash does AT have on hand?" was the question.

It is irrelevant to the discussion to then add "but they owed X plus Y". Thats a debt part of the equation, which was not asked.

 

[texman]

Just a question? I thought AT had 2 plus billion in debt that we are paying off? What kind of Debt was it?

 

[PCL_128]

dude cut the condescending crap, I know balance sheets.

We are talking right by each other, cash is cash, forget the debt part of the equation. If you have X amount of cash on hand, it's cash for your use. Thats what a corporate balance sheet looks like.

Thats what started this whole discussion "how much cash does AT have on hand?" was the question.

It is irrelevant to the discussion to then add "but they owed X plus Y". Thats a debt part of the equation, which was not asked.

The ironic thing is, if we were having this same discussion prior to the SLI, you'd be arguing the other side, claiming we were weak because part of our cash was debt.

 

[scoreboardII]

Correct, but that wasn't the question, my response specifically answered the "how much cash" question, that is all, now I'm out, take care.

 

[humveedriver]

Just a question? I thought AT had 2 plus billion in debt that we are paying off? What kind of Debt was it?

Dunno. SWA bought AT for 670 million cash and assumed 2 billion dollars in debt. The result was an advertised sale of 1.4 billion dollars. I'm not a tax attorney, but I'm guessing there are addition benefits like tax write offs that go with that assumption of debt and other merger related items. Then you throw in the pricing power and market control SWA gets and viola, deal looks good on paper.

 

[SWA/FO]

2 billion dollars in debt

are we talking AT debt or the loss of our fuel hedges??

 

[humveedriver]

are we talking AT debt or the loss of our fuel hedges??

Maybe that information can be found at Edgar online. I just looked at this article.

http://www.huffingtonpost.com/mobileweb/2010/09/27/southwest-airlines-airtran_n_739975.html

I enjoyed the part where it said SWA would drop AT's baggage fees in 2012 :-O

 

[texman]

are we talking AT debt or the loss of our fuel hedges??

Yes 2 bil for debt. The hedges, I think are paid off first quarter in 2013 we actually got AT pretty cheap. The 717 deal with Boeing cost wise is a wash. Even though we are paying to convert them to DL the cost savings we are getting from Boeing is tremendous. I think we will be pretty close to 15 % roic next year.

 

[SWA/FO]

In welcome news for weary travelers, Southwest said it will drop AirTran's bag fees when the pair combine in 2012. Right now, AirTran charges $20 for the first checked bag, $25 for the second.

Funny, we "love" the bag fees I but we just can't lower ourselves to that level. I mean who needs the extra billion or 2 anyway. We just recently raised the tranny bag fee from $20.00 a bag to $25.00 I guess we need the extra cash to pay them?