SWA announces new Denver service

[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.

 

[TAZ MAN]

You know this fuel hedging point is so old and always so wrong that the ones who usually set the ones straight who think that without the hedges SWA would lose money are too tired to write about it again.

Without explanation, SWA's pricing model would change without the hedges and they likely would have still made a good profit.

 

[400ADude]

Taz Man that isn't entirely true about making a profit without the hedges.

Do the hedges run out? The 40-50 dollar hedges do run out. We can hedge more and probably will but it might be at 90-100 dollar range. Can we make a profit at that?? I've heard not so much. We are all in for a bumpy ride.

 

[CA Calypso]

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?

Flying has not become a right - nor a privilege. It has become a commodity. A nearly unregulated commodity at that. This was a guaranteed certainty after deregulation whether SWA existed or not.

The main problem for many of the other carriers is the revolving door that management uses to keep placing their ivy league buddies in their positions. Cash out in two to four years and move on. The poor employees are left to finance the next "grand experiment." Isn't United now run by an oil man? What did he know about running an airline? Nothing - but he knew all the right people on Wall Street.....

SWA has been blessed thus far with long term management. But if it makes certain people on this board feel better to blame SWA - so be it. Live in ignorance and continue to be a victim.

 

[SWA GUY]

Bring back the free booze, hot pants, and go go boots and you'd have a winner! It's just difficult to fathom how flying dirty airplanes to nowheresville can develop such a cult following.

Here's some nowheresville for ya!

Buffalo
Baltimore
Long Island
Chicago
Orlando
Tampa
Nashville
Houston
Dallas
San Antonio
Austin
Oklahoma City
Tulsa
Denver
Detroit
Phoenix
Salt Lake City
Las Vegas
Seattle
Portland
San Francisco
Las Angeles
San Diego

Start makin fun of these places and you'll look like Barry Hussien Obama!

 

[Cardinal]

You forgot LBB

 

[flyipilot]

I have to say...With UA, AA, well....everyone out there but SW (and JB)...I am so happy SW is still expanding routes! I love flying on them and why other airlines will not learn from them is beyond me.

Congrats on another profit!

 

[mbd]

When a farmer buys a futures option to sell his wheat at a guaranteed profit at harvest, is he a commodity trader or a farmer?

Hedging is a smart tool for farmers and airlines

 

[canyonblue]

Alright pipejockey, Freudian slip? Please tell us where you are employed, since it is far superior to Southwest, many on this board may want to submit an application.

We're waiting for the response.

 

[pipejockey]

Alright pipejockey, Freudian slip? Please tell us where you are employed, since it is far superior to Southwest, many on this board may want to submit an application.

We're waiting for the response.

Thats just the problem. Thanks in part to southworst among many other reasons, the only decent places to work right now are FedEx and UPS.

 

[waveflyer]

so southwest is responsible for your contract right now? your life too?