SWA plan for 15% ROIC

[maxblast72]

SWA doesn't know what they are doing. I think they are going to announce their 40th straight year of profitability next Thursday. Maybe they will file bankruptcy the week after.

 

[ALSF 2]

SWA planes are not allowed to be powered unattended at all... ground power...apu power... nothing! They were pulling your leg. If ramp did that overnight, it would be noticed, and that ramp crew would be out of a job.

Cheers!

 

[scoreboardII]

They are not unnattended, someone is there all night, and it's only about 5 hours seeing as they terminate then originate. Some outstations run the apu to keep the jet from freezing as they have no or not enough power units. It is a rare event but does happen.

 

[Saluki Dawg]

Scoreboard is right. I've seen them do this in BUF, PVD, and BDL I believe. Very rare when it happens, but it does sometimes happen, and yes the ramp crew is forced to babysit the Airplane overnight when that happens.

 

[PCL_128]

.15 is pretty big. Alaska's goal is .10 and they are raking the cash in getting .11-.12. I am getting the feeling this is management's new tactic. Give labor some arbitrary ROIC and then say they need to reduce labor costs to reach this new arbitrary goal. "If we can meet this .15 ROIC we can buy new planes, hire more pilots and grow!!! BUT, we are going to need to control costs a little bit more! Thanks for all you do." Its hard to wrap your finger around this and management can use their funny accounting to make this number whatever they want in the end.

Someone gets it.

 

[maxblast72]

.15 is pretty big. Alaska's goal is .10 and they are raking the cash in getting .11-.12.

SWA generated 15% ROIC in Q2 2012 (when annualized). Of course it didn't hurt that Jet A dropped about $0.60/gallon between the start and finish of the quarter (before climbing again substantially in Q3 and Q4). If fuel stays in the $3.30/range and Gary Kelly acheives his $1 billion extra revenue target from the connection of the two systems, the extra 6 seats with the Evolve interiors, and the replacement of B717s with B737-800s, Southwest will be flirting if not hitting 15% ROIC in 2013.

In today's crazy world with Bernanke and the ECB running the printing presses on premium unleaded, I don't think running the airline conservatively is a horrible thing. Gary Kelly wants to grow but isn't going to overleverage the company just for the sake of growth.

PCL128, if Gary Kelly ever leaves, I will write you a recommendation letter to replace him. It seems like you have it all figured out. Remind me what school you got your MBA at so I can include that in my letter of recommendation.

 

[slaquer5]

PCL128, if Gary Kelly ever leaves, I will write you a recommendation letter to replace him. It seems like you have it all figured out. Remind me what school you got your MBA at so I can include that in my letter of recommendation.

It was Atlanta High School. His MBA is a gold medallion he made in art class ( he is to much of a sissy for shop).

He keeps it on his night stand next to the one that says( fat people rock)

 

[flygirlqt]

PCL128, if Gary Kelly ever leaves, I will write you a recommendation letter to replace him. It seems like you have it all figured out. Remind me what school you got your MBA at so I can include that in my letter of recommendation.

Mr. ALPA got his diploma at the Gulfstream School for PFT clowns

 

[PCL_128]

PCL128, if Gary Kelly ever leaves, I will write you a recommendation letter to replace him. It seems like you have it all figured out. Remind me what school you got your MBA at so I can include that in my letter of recommendation.

Says the guy who acts like the CEO, the Chairman of the Federal Reserve, the Secretary of the Treasury, and a merger attorney, all at the same time?

 

[pilotyip]

SWA is no longer the low cost carrier. Market pressures are making it harder to be profitable. Great airline, great place to work, but can their product of free bags, no changes fees, and highest wages survive in the present market? Management's job is to work to ensure survial and saving of everyone's job. Union's job is to find ways to increase productivity and reduce CSM. That is the reality of today's airline market.

 

[PCL_128]

Union's job is to find ways to increase productivity and reduce CSM.

Uh, no, that's not the union's job.

 

[pilotyip]

Uh, no, that's not the union's job.

So what is the role of the union when it moves to destroy a company, do they then become known as "Company Busters". I am sure you have an answer right?

 

[PCL_128]

So what is the role of the union when it moves to destroy a company, do they then become known as "Company Busters". I am sure you have an answer right?

I'm really not sure what you're talking about. I've never seen a union "move to destroy a company."

 

[maxblast72]

Says the guy who acts like the CEO, the Chairman of the Federal Reserve, the Secretary of the Treasury, and a merger attorney, all at the same time?

Where have I ever posted and told Gary Kelly how to run his airline? I do think I could have done a better job than Greenspan or Bernanke as Fed chief. Boy can those guys blow bubbles.

With respect to merger attorney, I guess this DFR lawsuit might prove who the better merger attorney is, Maxblast72 or PCL128

 

[slaquer5]

I'm really not sure what you're talking about. I've never seen a union "move to destroy a company."

Please tell me your yanking his chain with that comment..