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SWA plan for 15% ROIC

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Score, I wasn't agreeing with Ghetto. I was merely illustrating the more tangible reasons why the transition is slow and why the 1 JAN 2015 timeline isn't going to work. Yep. I already know what your talking about, when you say be careful what you wish for. I almost wish the union had ignored any MOUs discovered after the fact, but they can't. They have to run everything to ground, to avoid DFR.
 
Maybe I'm jaded from my last gig, and I hope that I'm wrong, BUT that being said Wall Street loves furloughs and I don't think they value or culture like we do. Our stock would probably go up if we furloughed. Most stocks do go up on news of cost cutting. Besides I think that most of GKs innner circle believes that the culture lives in the GO, inflight, and ground ops. They can keep all of those folks and furlough just pilots which will have little to no effect on the afforementioned groups but will serve as a warning to them. Best to be loved and feared but if you have to choose one be feared. Training 500 pilots that we don't need will cost millions and continue to drive up costs for a long time. Only 200ish WN pilots would have to be furloughed avoid training the 500 FL pig in the python pilots. I think they will try and hold these pilots hostage for the WN rigs and line guarantees. If the pilots don't give in the hatchet will fall and they can blame it on SWAPA.
 
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This forum is talking furloughs...we are in sec 6...we should be pushing contract improvements...we r the enemy to ourselves...
 
GBJ, no furloughs, yes, this is like no other place.

GK will not furlough not just because he said so, but because it will cost him more in the long run, and not just training costs, in pilot slowdown costs and loss of goodwill.

Some may think he could keep his inner GO circle happy with furloughs, but the truth is that stake would hit the heart, the pilots, the guys who set the tone, and that would die, and so would any chance of making the numbers work.

Airlines who make profit for 40 some years don't furlough.



No furlough.
 
First score is right, there are a ton of pilots who don't set the tone already especially in PHX and in the AM - but most of us really do.
And that is not lost on GK-
This place runs on culture regardless of cynicism from an individual perspective- we should protect it every day going forward bc it's the best job security the industry has

GBJ- you're wearing glasses that skew your vision- get involved with the extracurricular stuff instead of FI, you'll be happier for it-
 
I know the talk of furloughs had died down on this side, except for a few chicken littles and drama queens. There would have to be a major catastrophy.

The talk has mainly switched to folks leaving to go back to a previous employer (American) or just applying at another company. I just talked to a former SWA pilot who left for FedeX within the last year so it may be happening on the other side too.

Phred
 
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I think everyone that is talking about furlough needs to remember that SWA cannot function as it currently does without the pilot group picking up thousands of hours of open time. I know that a union driven call to stop picking up open time would most likely be seen as an illegal job action, but I would not need the union to tell me to do the right thing. If SWA decided to furlough pilots (FAT or RSW or both), I would refuse to pick up open time. Some of the folks who have financial situations that rely on 120TFP every month would not follow suit, but it would not take a dramatic shift in reduced open time pick ups to greatly reduce the ability for SWA to run its full schedule. If you can't adequately staff the flight schedule, the need for pilots on furlough diminishes quickly. There is no need at this time for a furlough and I will not be complicit in that need to furlough by picking up open time. I know I am not the only one because I have asked others about this scenario.
 
madjack said:
This forum is talking furloughs...we are in sec 6...we should be pushing contract improvements...we r the enemy to ourselves...
Click to expand...
Exactly, Wall Street is predicting a $700+ million net profit for 2013. We shouldn't be talking about furloughs but how much of that $700 million should go to the pilots while maintaining SWA's competitive position within the industry we operate in.
 
Ding, ding ding!

GK has all but promised 15percent return this year. If he fails, he's out, and he's not going to make that statement unless he already has it in the bag.

No furlough, and I wager we get a raise.
 
maxblast72 said:
Exactly, Wall Street is predicting a $700+ million net profit for 2013. We shouldn't be talking about furloughs but how much of that $700 million should go to the pilots while maintaining SWA's competitive position within the industry we operate in.
Click to expand...
From I see $700M is before EBIT, and $421M after EBIT on sales of $17B, a return of 2.4% on sales. If this is reduced can SWA still attract capital to grow or will it have to resort to borrowing?

There is a new low cost carrier on the block, called Spirit, highest profit per airplane in the industry. Walk up ticket same day DFW-DTW $86.00

http://finapps.forbes.com/finapps/jsp/finance/compinfo/IncomeStatement.jsp?tkr=luv&period=qtr
 
pilotyip said:
From I see $700M is before EBIT, and $421M after EBIT on sales of $17B, a return of 2.4% on sales. If this is reduced can SWA still attract capital to grow or will it have to resort to borrowing?

There is a new low cost carrier on the block, called Spirit, highest profit per airplane in the industry. Walk up ticket same day DFW-DTW $86.00

http://finapps.forbes.com/finapps/jsp/finance/compinfo/IncomeStatement.jsp?tkr=luv&period=qtr
Click to expand...

Now they just have to deal with American. The fares are great though.
 
pilotyip said:
From I see $700M is before EBIT, and $421M after EBIT on sales of $17B, a return of 2.4% on sales. If this is reduced can SWA still attract capital to grow or will it have to resort to borrowing?

There is a new low cost carrier on the block, called Spirit, highest profit per airplane in the industry. Walk up ticket same day DFW-DTW $86.00

http://finapps.forbes.com/finapps/jsp/finance/compinfo/IncomeStatement.jsp?tkr=luv&period=qtr
Click to expand...

Is that the $89 fare were they add a $35 fuel charge, then the Government fee of $30?
 
Aside: Spirt and VA prove what customer goodwill is worth in this industry that is (about zero). VA is a good running airline with a nice product that customers love but they are failing. Spirt's customers don't love the airline and they are near the bottom in all DOT catergories but they are making $$$$ hand over fist and expanding wherever they want.

UPS proves staffing is staffing no matter the financial returns. They make over $4 billion a year and have pilots on furlough. If we only had one customer and that customer chartered an airplane once a week for $10 million we would still only need 4 pilots max. They will furlough to ideal staffing numbers if they can find a way to do it and keep face/faith with the other employee groups. We are told we are the airlines leadership and most of us may act like it but what do you think the inner circle of the GO believes? Acid test how many pilots at WN are real corporate decision makers? ZERO.
 
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