SWA or DAL

[canyonblue]

You guys lease 83 airplanes.

YPF, our favorite management pilot. Are you the one who gave Steenland this idea.

One afternoon Doug Steenland of nwa was riding in his limousine when he saw two men in nwa uniforms along the roadside eating grass.

Disturbed, he ordered his driver to stop and he got out to investigate.

He asked one man, "Why are you eating grass?" "We don't have any money for food," the poor man replied. "We have to eat grass."

"Well, then, you can come with me to my house and I'll feed you," steenland said. "But sir, I have a wife and two children with me. They are over there, under that tree." "Bring them along," steenland replied.

Turning to the other poor man he stated, "You come with us, also."

The second man, in a pitiful voice, then said, "But sir, I also have a wife and SIX children with me!" "Bring them all, as well, "steenland answered.

They all entered the car, which was no easy task, even for a car as large as the limousine was.

Once underway, one of the poor fellows turned to steenland and said, "Sir, you are too kind. Thank you for taking all of us with you."

Doug Steenland replied, "Glad to do it.
You'll really love my place. The grass is almost a foot high."

NWA management must really be proud of you.

 

[FDJ2]

How many of these "other" airlines bought over 100 new airplanes the last 3 years...and will do the same the next three years?

That's not necessarily a good thing. Note the precipitous drop in SWA's cash position, also note the large increase in year over year debt. Sooner or later the bills will come due. What are you going to do, start selling your aircraft?

The settlement of hedges had to come out somewhere.

Too many of the SWA fan club thought it would never come out. Get ready, it isn't going to get any better. A 41% increase in fuel costs, compared to AMR's decrease of 8.5%, ought to be an eye opener. SWA has depended to large degree on a significant fuel cost advantage these last few years. That advantage has been greatly reduced.

I know many want to be the first to call the start of SWA's decline, but I think reports of the death of SWA's cost structure are premature.

I'm not trying to be the first , nor do I intend to report the death of SWA's, but the SWA cost structure, which has traditionally depended upon, among other things, low cost labor is in jeapordy. Note the 9.7% year over year increase in SWA's labor costs, compared that to AMR's 0.9%. The average SWA employee costs are over $93K/year at AA it's $74K.
You can continue to believe your own press if you choose, but at the end of the day your costs are going up, your debt is go up, your margins are going down and cash is dwindling. You can ignore that, be my guest.

How hard would it be to stop the flow of cash by taking delivery of the '700s and selling them to the highest bidder??

That depends, sometimes you're stuck with the aircraft, particularly if we come into a nasty down cycle. The follow on question would be what would a sudden halt in growth, let alone contraction, do to your costs?
Didn't SWA do some stock buybacks too??

So did DAL, what's your point?

Cash flow is hardly under threat.

You're right, a decrease in cash of 30% year over year is nothing to SWA.

Good try...but don't give up. Just try harder if you want anyone to believe your assertions.

Your only response is that SWAs could sell their aircraft.

Great, you've got the answer, without ever having to deal with the fact that employee costs that are growing at over 9%/year and are now significantly higher than AMR's, cash that has been depleted by 30% year over year, fuel costs that have increased by 41%, when the competitions has decrease of 8.5%, long term debt that has risen 12.4% year over year and shrinking profits, margins and earnings. Don't think twice about it, all is well.

I'm not saying the decline of SWA is imminent, but the trend lines in cost, cash and debt will have to change. You could pretend it's a non-issue, but if it doesn't turn around eventually you'll have to deal with a very ugly situation.

 

[YourPilotFriend]

How are your contract negotiations going over there canyonblue? Is your management ready to give back for those block hour concessions taken a while back?

 

[27 driver]

It doesn't sound wierd to me. The only reason they are at the top right now is because everyone else took concessions. Don't get me wrong, it's a good company, IMO, but before 9-11, I knew maybe 2 people tops who's #1 choice was SWA. Now all of a sudden, you have all these pilots saying "SWA is the only place I ever wanted to work".....yeah....uh huh....riiiiiight.

Heck, before 9-11, DAL was my first choice.

The same could be said about FEDEX or UPS. Several years ago they were not desirable places to be. Funny how this industry changes. It is a dynamic industry and will change many times in one's career. You never know if the choice you make today will be a good choice tomorrow. Make your best guess and run with it. That being said, any of the Legacy airlines, LUV, FEDEX, UPS, Airtran, etc will provide a decent life. Just make the best of it. Good luck. I hope I get a chance at one of the above one day. For now it is ACMI freight dog.

 

[SWA/FO]

It must be fun flying for a BANKRUPT carrier? Delta sucks and is going nowhere very slowly.

You don't even have a horse in this race.

 

[General Lee]

It must be fun flying for a BANKRUPT carrier? Delta sucks and is going nowhere very slowly.

You don't even have a horse in this race.

Huh? Thank gawd we are going nowhere SLOWLY. We don't even have a horse in this race, even though we are number 2 (behind you guys) in domestic passengers, and #1 to Europe and maybe #2 to the Carribbean and South America. But, we don't have a horse in this race.......and you fly a corndog. And May 1st we will be flying for a non BK carrier, and that really will feel great. So will looking at my claim portion of about $160,000 (at 65 cents on the dollar). Can't wait. Say hi to everyone in El Paso for me, I will never ever go back there again, but you will, a lot.


Bye Bye--General Lee

 

[capt. megadeth]

Everybody that bashes SW wishes they were there!

:laugh:

Uh....don't think so buddy.

 

[General Lee]

Quote:
Originally Posted by bravodude
Everybody that bashes SW wishes they were there!




Really, honestly, I don't want to fly the same plane for 30 years and do UP TO 5 or 6 legs a day with 25 min turns. I really don't. I flew for the commuters back in the day, and that was tiring enough. How do older guys do it at SWA? It must be exhausting. Not everyone wants the regional life again, even at the higher pay. But wait, they have the 1 2 3 rule....... Some may want that lifestyle....... I don't. I still get plenty of time off, and enjoy my trips and get to come home often. (turns)


Bye Bye--General Lee

 

[737 Pylt]

It must be fun flying for a BANKRUPT carrier? Delta sucks and is going nowhere very slowly.

That might be true, but some day we'll be out of BK and making money. You however, on the other hand, will always be a sniveling little POS!

You don't even have a horse in this race.

You're right....You and all the other LCC's can beat each other to death fighting over the MCO market. We'll take our shot at the International market where the real bread is!

Now back to your hole troll!

737

 

[capt. megadeth]

That might be true, but some day we'll be out of BK and making money. You however, on the other hand, will always be a sniveling little POS!



737

Right on man!

I am saving all of SWA/FOs posts so I can repost them and gloat when the time comes. imp: