SWA or DAL

[FDJ2]

Be careful what you wish for. SWA in bankruptcy would be all of your worst nightmares rolled into one. Besides, anyone can take all that information you post and get your doom and gloom. Here's one fact you forgot to post. Southwest is getting a new 737 every 10 days and paying CA$H. That's right $42,000,000 that we could leave to the bottom line if we chose to lease our airplanes. Just how many planes does Delta own?

Who said I was "wishing" for any of it. Those are just the facts. Ignore them at your own peril, not mine.

While SWA may be paying cash for some aircraft and its balance sheet is still relatively healthy, SWA is also beginning to pile on some debt at a rate of 12.4% in just the last year and SWA's cash position has plummetted 30.5% in just one year. Tack on the loss of a large part of SWA's fuel hedge advantage, with SWA's fuel costs skyrocketting by 41% year over year and SWA loss of its low cost employees with labor costs rising over 9.7% in just the last year, you don't have to be a brain surgeon to see where this is all going if something doesn't change.

 

[canyonblue]

While SWA may be paying cash for some aircraft.......

It's not "may" or "some", it's "is" and "all".

 

[canyonblue]

I know a SWA pilot and he tells me about his trips.

Bye Bye--General Lee

PM me his name, then I'll believe it.

 

[FDJ2]

It's not "may" or "some", it's "is" and "all".

and the band played on while the debt increased year over year 12.4%.

 

[YourPilotFriend]

Be careful what you wish for. SWA in bankruptcy would be all of your worst nightmares rolled into one. Besides, anyone can take all that information you post and get your doom and gloom. Here's one fact you forgot to post. Southwest is getting a new 737 every 10 days and paying CA$H. That's right $42,000,000 that we could leave to the bottom line if we chose to lease our airplanes. Just how many planes does Delta own?

The way the money is accounted for in investing activities at could be used by any airline to purchase aircraft. Instead at other companies instead of buying airplanes with that excess cash, they were funding employee pension plans. In fact SW is able to keep its casm so low because a significant portion of the operating expenses are passed along as investing activities rather than operation expenses. Things such as advertising, business supplies, ground equipment, employee vacation time... etc; of which all other airlines report that in operational expenses.

 

[YourPilotFriend]

It's not "may" or "some", it's "is" and "all".

You guys lease 83 airplanes.

 

[General Lee]

PM me his name, then I'll believe it.

Yeah, OK, and then I will give you my AMEX Platinum card number too.... His name is Hoot Gibson......

Do you really think I could come up with legs like that? Yeah, I just looked at your route map and made it up. If you don't know about days like that, you must be a sim guy scared to fly because you flew next to a T Storm once.. Gimme a break.... I gave you the exact legs.


Bye Bye--General Lee

 

[puddlejumper101]

You guys lease 83 airplanes.

check and see who is the company leasing them to SWA...I believe there is quite a "relationship" with those that provide our leases. From what I have been told those airplanes are owned by a company directly related to Herb and friends. Just an attempt to "incur" debt on paper. SWA is determined to "dirty" up it's balance sheet...it has to. A company with no debt is actually in danger...and management has to find a way to incur debt. Trust me what the numbers say and what is really going on is very different. Just like taxes...the more you can deduct...the less you pay...even if you have to find a way to fabricate it. Companies do this all of the time...especially when the threat of a hostile takeover is out there. I would not be surprised if SWA incurred way more debt this year...even in the form of another airline. UAL and CAL are in debt to their eyeballs...yet look at their stock.

 

[ACL65PILOT]

Isn't Hoot an ex shuttle astronaut? I know that he did go to SWA.

 

[FDJ2]

UAL and CAL are in debt to their eyeballs...yet look at their stock.

Have UAL and CAL depleted 30% of their cash in one year, are they paying 40% more for fuel and have their employee costs gone up 9.7% year over year?