SWA announces new Denver service

[TXDanno]

...Just 10 years ago in 1997-1999 most NWA, AA, CAL were being paid about 170 an hour on similar equipment.... And that 170 hour rate was before the acceptable contracts that United earned in late 2000 and Delta in 2001 which had 737 guys at 220 bucks an hour... Today that would have to be 267 for the same earning power...

Were those 'acceptable' contracts in any way part of the problems for those legacies? Or were those contracts basically untenable in the market? The legacies entered BK and/or received/took large contract concessions. Was this partly market correction?

Attention: Donning nomex suit at this time.

 

[PCL_128]

Ok agreed. Can I call you ValueJet then? Same turd, diffrent paintjob.

 

[Tejas-Jet]

...but SWA did a double wammy three years ago with the fuel hedge "strategy". I understand that the hedging was bought with money to avoid taxes

Uhhhh...how about 8 years ago...was when the hedging strategy was implemented. It is now part of the strategic planning.

In order to get into the hedge game...one has to put all the money up front...avoiding taxes isn't the reason.

 

[AdSo81]

for the sake of every resident in Colorado--I hope not!

Well, Colorado is not exactly the center of the universe--just a small niche market.[/quote]

Southwest is just doing what thousands of other Texans have been doing for years now, adding more traffic to my drive to work! Now if all you SW guys just started skiing in Jeans and windbreakers you'd fit right in!

 

[Bake]

Jeans? No way, we want to spend as much money as possible to look as silly as possible. That way all you people in jeans will get outta the way when we come barrelling down the slopes without stopping, until we hit something. It's the Texas way. Full blast until we stop or something stops us.

 

[Fubijaakr]

SWA's profits haven't come from fares. They've come from oil commodity trading.

 

[FlyinGuy]

One more time: Profits come from hedging when oil is high and fares when oil is low! It is a business strategy not game or gamble that "paid off".

 

[The Prussian]

Yet another astute post by FlyinGuy...reference post #35 on page 3 of this thread...

 

[pipejockey]

Were those 'acceptable' contracts in any way part of the problems for those legacies? Or were those contracts basically untenable in the market? The legacies entered BK and/or received/took large contract concessions. Was this partly market correction?

Attention: Donning nomex suit at this time.

No they were not in any way part of the problem. The problem is that everyone thinks they have the right to fly anywhere they want roundtrip for less than 200 bucks...NUTS!! Coast to coast for 250...NUTS!! As far as I'm concerned fares need to be doubled and pass the cost of doing business to the consumer not continue to support these fares on the backs of airline labor. If it means 10% of the flying public today will no longer fly, so be it!! Profits could be made, salaries could be brought back to 1992 earning levels. Is that so unrealistic? The APA's proposal to AMR is 1992 wages plus 2.9% added to that each year until reaching 2008. Is that so absurd? Even that modest proposal, amounts to a 50% pay raise. That just shows you how much has been lost. Too many of you have become complacent and have allowed yourselves to become conditioned to these low wages and management is laughing their asses off at you!!

Since when did flying become a right for a traveler and no longer a privilege?

 

[N1kawotg]

All this bashing about SWA is old. Look at history. Everytime others have furloughed, reduced service, etc. 70's early 80's, early 90's SWA has expanded. The plan is to save it times of good to be well prepared for the bad. SWA management should not sit in their meeting discussing new routes and service and what's the ticket price and then go "oh yea how will company x make money at our prices". They answer to their stock holders and employees. SWA does make money with those prices. Walmart isn't responsible for Kmart and Target costs, prices, and employees. Swa has to keep their employees happy and recieving their checks on the 5th and 20th.