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SWA delaying new planes, adding used Westjet birds --article

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General Lee

Well-known member
Joined
Aug 24, 2002
Posts
20,442
Southwest to save by delaying delivery of planes
Associated Press - 2 hrs ago


DALLAS (AP) -- Southwest Airlines Co. is delaying delivery of new airplanes and filling the gap with used planes to reduce spending over the next five years.
It's also raising its dividend and could soon buy back more of its own shares.
Southwest said Wednesday that it will delay 30 firm orders for Boeing 737 jets, which CEO Gary Kelly said would cut ca pital spending through 2018 by more than $500 million. The airline is also giving up or delaying options for additional planes.

Meanwhile Southwest will buy 10 used 737s from Canada's WestJet over the next two years. They average about 11 or 12 years old and should bide Southwest over until Boeing begins producing a new, more fuel-efficient 737 model called the Max late in this decade, Southwest officials said.

The airline isn't disclosing financial details of the Boeing and WestJet deals, which were announced at the Dallas company's annual meeting.

Southwest is raising the quarterly dividend due on June 26 to 4 cents per share, up from a penny per share. It's also boosting share-buyback authority to $1.5 billion from $1 billion. The company has bought $725 million in its own stock since August 2011.....




Good or bad for you guys? Used planes are popular these days, that's for sure! Hopefully the 10 Westjet birds will be growth for you guys, right? I think they may have Live TV installed already?



Bye Bye---General Lee
 
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GL

Yes those airplanes are going to be used for our explosive growth in to LBB! We tried to get a crew base there but the company didn't want to take that overnight from us so we are just going to rapidly expand our presence there. It just gets better every day!
 
A very solid financial move.

They can buy 2 used planes for the cost of one new one. They are just stretching their legs toward the release of the Max.

Getting more 800's next year (switched the 700 to the 800) and released some options to buy used.

Adding another 500 million to a already working 1 Billion dollar share buyback to total 1.5 Billion.

Quadrupled the dividend. Brings the yeild up to 1%.

Agressive capital management. Exactly what the Board should be doing.
 
Used to hear JB/SW marriage but recently its all been Alaska rumors. Any Eskimos hearing anything similar?
 
Good news! Get planes from under the Artic ice for all I care. Nothing will soothe over bad feelings for everyone involved better than good solid growth.
 
I have not even heard a whisper of LUV of late. I got to be honest someone would have to pay 5.3 billion to get ALK right now... No one is going to pay that. That is half of LUV'S current market cap. How does anyone over at LUV think you guys are going to pull this off? Why would you want it..what a mess that would be. It would have to be a magic stock swap with the ALK board really wanting the deal. Something they swear they don't want. If you are buying I would bet blue
 
4.6B market cap... I think it would have happened when we were worth about 1.8b a few years ago..???

Exactly, a few years ago before the stock took off and they had extra cash, people in the financial community couldn't believe Alaska wasn't getting purchased. No longer is that the case with the current price of the stock. Besides, Alaska is doing so well right now on it's own. Why screw up a good thing?
 

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