SWA/Airtran Process Agreement??

[Just thinking]

Delta has already stepped up the pace in ATL, just look at the number of mainline aircraft that are now occupying gates on the C and D concourses that were shared gates on "D" or RJ gates on "C".

 

[texman]

Z

That would be wonderful, the sooner the better. I think it will be important to move as quickly as possible not only for our benefit but to counter any moves by Delta in Atlanta.

I agree.

 

[Luv2BFlyin]

____________

Fast forward to the end of 2010 and lets see how the analysts predictions turned out.

At the end of 2010, AirTran had losses that totaled over $400m. The following is quoted from the SWA 10K for FY10
"As of December 31, 2010, AirTran had federal net operating loss carryforwards (“NOLs”) of approximately $477 million available to offset future taxable income, which are not currently subject to an annual limitation under Section 382 of the Internal Revenue Code (the “Code”). The NOLs expire between 2017 and 2030."

My intent is not to slam my future brothers and sisters but to simply point out some fiscal realities to what transpired for 2010 financially. If I offended any AirTran persons, my apologies.

SWA will use these losses to offset future gains. While this is a plus short-term wise for SWA, it is not a badge of honor to have such losses that most airlines would point to as being a goal for a company to achieve.

I support the merger and am happy it is progressing forward; it is however not a merger of equals or similar companies financially healthwise either IMHO.

Actually, AirTran had a profit for full year 2010. The NOL's are from previous years that can be carried forward to future years to offset tax liability on future profits. This may or may not carryforward to WN. If it does, it will be a nice addition to the over 400M in cash (close to 900M in value). The above quote was obviously taken from SWAPA LUV and doesn't tell the whole story.

 

[Luv2BFlyin]

SWAPA LUV must've simply forgotten to add this gem from the 2010 Annual Report to Shareholders.

"The Company has historically been regarded as a growth airline; however, the combination of a difficult
economic environment and growing costs led to the Company’s decision to curtail organic growth during 2007,​

2008, 2009, and 2010 and for the indefinite future." emphasis mine.

 

[Bwipilot]

If we drink G/Ks koolaid and believe we will hire another 1000 pilots post merger, the issues we are discussing will be moot.

This is an extremely ignorant statement.

 

[jonjuan]

SWAPA LUV must've simply forgotten to add this gem from the 2010 Annual Report to Shareholders.

"The Company has historically been regarded as a growth airline; however, the combination of a difficult
economic environment and growing costs led to the Company’s decision to curtail organic growth during 2007,​

2008, 2009, and 2010 and for the indefinite future." emphasis mine.

Wait a cotton picking second. Where did you find that BS? You know darn well the zero growth since 2007 was to stockpile cash to buy aai last year.

 

[Luv2BFlyin]

That's kind of the point, we can all pick and choose snippets to support our side or twist them to support our side.

 

[Lonestar]

The pilots with the most unreasonable expectations will be the ones who will be bitter.

Ty, I agree with this statement completely. The problem for me is how you define reasonalbe and unreasonable expectations. The vast differences in nearly every aspect of a career at SWA vs AAI ia undeniable, yet y'all continue to banter on about how none of it matters. If you're right, then I guess I'm unreasonable. But somehow I think all these things will matter in the end.

Most likely, each side will view the others' position as unresonable. So we all know where that takes us. Good luck going in with OUR SWA mgmt as your sole source to try to convince a panel how bright the outlook was for trannies.

 

[Bill Nelson]

Wait a cotton picking second. Where did you find that BS? You know darn well the zero growth since 2007 was to stockpile cash to buy aai last year.

Were these the same years AirTran was furloughing and selling airframes or was that another set of years?

 

[Lonestar]

Our sole argument? Really? Is that what you think?

Let's see, we bring new aircraft deliveries, a half dozen Caribbean/Mexican destinations, slots in the northeast, Class II navigation, two dozen + gates at the worlds busiest airport and let's see...hmm...oh yeah, expansion and upgrades.

Yes, that's exactly what I think. Your guys will stomp their feet and whine, Cry Baby Katz might do just that, and your sole argument will be, "But mommy, that's not fair."

And btw, notice what is bold in your quote above. Let's be clear; your fifty new aircraft deliveries won't change much at an airline with nearly 550 already. And as far as upgrades goes, those fifty aircraft (assuming AAI even took delivery to all as opposed to selling some as has been the case in the past) aren't even enough to upgrade half of your own first officers. And I don't recall a single statement mentioning AAI's plans for the next aircraft to continue any growth.

These are just a few of the facts that will be presented to a panel of arbitrators. Your only counter will be, "But mommy, that's not fair." These facts will be confirmed by our mgmt. They will also be confirmed by your mgmt, which is to say also our mgmt. Good luck!