SWA plan for 15% ROIC

[malibuVride]

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

The argument would be that not picking up open time would be contrary to the status quo. I would argue that furloughing is quite contrary to the status quo!

As far as those who would continue to pick up open time: Slash enough tires in the parking lots and the cost of picking up would change pretty quick!!

 

[tankerhead]

The argument would be that not picking up open time would be contrary to the status quo. I would argue that furloughing is quite contrary to the status quo!

As far as those who would continue to pick up open time: Slash enough tires in the parking lots and the cost of picking up would change pretty quick!!

Just do it out of uniform so the omnipresent surveillance cams don't catch you in your epaulets. Same for the mug shot.

 

[maxblast72]

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.

Gary has laid out a road map to 15% in 2013. That road map includes Jet A at $3.30/gal. Since Jan 1, the spots Price of Jet A has gone up about 30 cents per gallon. Remember, each 10 cents per gallon equals about $185 million to the operating line. I doubt the SWA BOD would fire Gary because the cost of Jet A rose. Now if we don't reach 15% because we don't get the promised merger revenue synergies, that is a different story.

Somebody needs to take the punch bowl away from Bernanke before he prints another $2-3 trillion and causes Jet A to climb to $4/gallon.

 

[waveflyer]

Just do it out of uniform so the omnipresent surveillance cams don't catch you in your epaulets. Same for the mug shot.

Fine- but without any guidance from my union, I would never pick up while pilots are furloughed- I budget for just that reason- my min bills allow me room to do do that-

That said- the company would go to Swapa before furloughing anyone and work out something- leaves, reduced guarantees- etc

1 capt made the mistake of saying we should furlough in 2009 so he could pick stuff up- in the crew lounge- he started to argue about it benefitting even the furlough guys bc of efficiency- profit sharing etc- and before us junior could say something several senior capts stepped in and said 'he could be first' - and eventually the chief pilot interceded as well- flatly put "WE DON'T DO THAT"

Read an article interviewing Herb- no furloughing introduces a lot of discipline into the business- every step would be taken before furloughs

 

[humveedriver]

I work 4 four day trips. Whatever that gets me is what I make. Normally it's above guarantee. What's sad is that it's probably not enough for that Captain to be able to bid and fly his line. He wants furloughs so that he can have more access to better trips or more flexibility to get certain days off. I don't differentiate those people who think that way from scabs.

 

[GhettoBeechjet]

Fine- but without any guidance from my union, I would never pick up while pilots are furloughed- I budget for just that reason- my min bills allow me room to do do that-

That said- the company would go to Swapa before furloughing anyone and work out something- leaves, reduced guarantees- etc

1 capt made the mistake of saying we should furlough in 2009 so he could pick stuff up- in the crew lounge- he started to argue about it benefitting even the furlough guys bc of efficiency- profit sharing etc- and before us junior could say something several senior capts stepped in and said 'he could be first' - and eventually the chief pilot interceded as well- flatly put "WE DON'T DO THAT"

Read an article interviewing Herb- no furloughing introduces a lot of discipline into the business- every step would be taken before furloughs

I totally agree that the company will come to SWAPA before they furlough. We will be given a choice between a furlough and disposing of our rigs and line mins. That way no matter what happens it's SWAPA's fault. Honestly if I were in the comapany's position I would do the same thing. Never let a crisis go to waste even if you created the crisis. Herb and Gary have very different ideas on how to run the airline and at this point GK is running the show. How many pilots would accept a 45 TFP line total in Feb to avoid a furlough? I don't know but I believe we are about to find out.

 

[scoreboardII]

Nope, that won't happen, swapa is not going to give one inch. We've helped the company enough. What part "healthy companies which make profit don't furlough" don't you get son?

 

[GhettoBeechjet]

Nope, that won't happen, swapa is not going to give one inch. We've helped the company enough. What part "healthy companies which make profit don't furlough" don't you get son?

Well dad, why don't you explain your healthy companies theory to the UPS pilots on furlough, UPS management, or a high school economics teacher? They would tell you that the decision to furlough or not has to do with staffing, not profitability. Max profit is achieved when you create the highest revenue with the lowest expense. Carrying unneeded staff is an expense that comes right off the bottom line. If you don't have enough productive work for all your employees, you trim the head count through attrition, firing, and/or furoughs no matter how much money you're making to maximize your profits. The only exception is if the downturn will be short duration and replacing the staff you cut will in the long run be more expensive than letting them stay on. No one, so far, is arguing the point that we will be overstaffed once the transition is complete. How overstaffed and what will happen as a result of that overstaffing are the outstanding questions.

Now that being said if the company comes asking for concessions to avoid furloughs, which I STRONGLY believe they will, will SWAPA give or not? I don't know. In either case if the company follows through they win. If we give them concessions the company benfits from reduced expenses. If we don't, and they furlough, the company benefits from reduced expenses and it serves as a warning to the other employee groups.

 

[SWA Bubba]

Well dad, why don't you explain your healthy companies theory to the UPS pilots on furlough, UPS management, or a high school economics teacher? They would tell you that the decision to furlough or not has to do with staffing, not profitability. Max profit is achieved when you create the highest revenue with the lowest expense. Carrying unneeded staff is an expense that comes right off the bottom line. If you don't have enough productive work for all your employees, you trim the head count through attrition, firing, and/or furoughs no matter how much money you're making to maximize your profits. The only exception is if the downturn will be short duration and replacing the staff you cut will in the long run be more expensive than letting them stay on. No one, so far, is arguing the point that we will be overstaffed once the transition is complete. How overstaffed and what will happen as a result of that overstaffing are the outstanding questions.

Now that being said if the company comes asking for concessions to avoid furloughs, which I STRONGLY believe they will, will SWAPA give or not? I don't know. In either case if the company follows through they win. If we give them concessions the company benfits from reduced expenses. If we don't, and they furlough, the company benefits from reduced expenses and it serves as a warning to the other employee groups.

Let's see...

330 posts over the years, and every last one of them doom and gloom about "impending furloughs." Are you SURE you don't secretly work for the company's negotiating committee? Or maybe your just General Lee's evil, trouble-starting twin?

I'm sorry you're so pessimistic and sad, but other than your own dramatic conclusions from industry news, which no one else seems to agree with, do you have any actual evidence of this? Has anyone in any authority whatsoever even given the slightest hint of furloughing? I mean, other than management continually insiting that "preserving every employee's job security is the most important task," that is? ('cause we all know that whenever management says anything, the opposite must be true...)

Bubba

 

[HowardBorden]

Well dad, why don't you explain your healthy companies theory to the UPS pilots on furlough, UPS management, or a high school economics teacher? They would tell you that the decision to furlough or not has to do with staffing, not profitability. Max profit is achieved when you create the highest revenue with the lowest expense. Carrying unneeded staff is an expense that comes right off the bottom line. If you don't have enough productive work for all your employees, you trim the head count through attrition, firing, and/or furoughs no matter how much money you're making to maximize your profits. The only exception is if the downturn will be short duration and replacing the staff you cut will in the long run be more expensive than letting them stay on. No one, so far, is arguing the point that we will be overstaffed once the transition is complete. How overstaffed and what will happen as a result of that overstaffing are the outstanding questions.

Now that being said if the company comes asking for concessions to avoid furloughs, which I STRONGLY believe they will, will SWAPA give or not? I don't know. In either case if the company follows through they win. If we give them concessions the company benfits from reduced expenses. If we don't, and they furlough, the company benefits from reduced expenses and it serves as a warning to the other employee groups.

Really? Comparing the relationship that exists between labor and management at UPS to that which exists at SWA is laughable. UPS furloughed while making huge profits. Could SWA do exactly the same thing, of course but to imply SWA will employ the same tactics as UPS in dealing with labor is at very least a stretch. SWA has in the past done the right thing for their employees, I see no evidence to show that they will not continue to do so in the future. Anything of course is possible but to suggest SWA will furlough while still turning a healthy profit is certainly looking at the glass half empty side of the argument.