SWA RJ's?

[DAS at 10/250]

Sitting in ERV today reading FORTUNE magazine, Aug 4, 2004 I believe and came across an article about the legacy carriers.

Stated: SWA is eying the RJ's due to their profitability. Delta will file for chapter 11. USAir will liquidate due to the fact that if their cash reserves fall below $700 million the government can force liquidation, they stand at $1000 million. Only three legacy carriers will exist in five years. United will not emerge from ch 11 due to the fact that the government will not back anymore loans. Delta wants 30% pilot pay concession, but even if received it will not help. JO wants an ultra-low cost carrier. MESA expanding into somewhere, PITT maybe? SWA CASM up to 8 cent/mile, something about FA pay up 36%.

I apologize for any inaccurate information. Relaying off memory.

Any thoughts on SWA and the RJ's?

 

[DAS at 10/250]

Found it.


Why the Big Boys Won't Come Back, FORTUNE, June 1, 2004 issue.

 

[General Lee]

Wow, it must be great to be able to predict the future. Where were they September 10th, 2001?


Bye Bye--General Lee

 

[Cheesemo]

If Gary Kelly et. al. are planning on acquiring RJ's, they are keeping it VERY quiet. They look at RJ options every few years and would/will go that route if they believe it would help our revenue picture. So far they have decided to avoid the RJ.

Kelly's push is to lower costs by automation, efficiency, etc. He wants to lower employee to aircraft ratios to the 60-70 range. I believe we are somewhere around 80 right now with a major revised schedule coming out this fall that will further reduce that number.

The F/A pay raise will, by the end of the contract, reach 30+%, but not right away. Management believes casm will dip back below 8 cents.


Cheers

 

[canyonblue]

The F/A pay raise will, by the end of the contract, reach 30+%, but not right away. Management believes casm will dip back below 8 cents.

Cheers

The pay will be offset by the increase in productivity, and less F/A's needed on the property. The new contract raises the amount by which a line can be built from 118 TFP to 130 TFP. Imagine if Delta had the ability to build F/A lines to 114 hours. I think in 6 months you will be hard pressed to find a F/A that will say they voted yes.

 

[Captain X]

Management believes casm will dip back below 8 cents.


Cheers

What happens at the end of the year when SWA is no longer hedged on fuel? Didn't they hedge around $26? I'm willing to bet that if oil stays where it CASM will stay up for a while and SWA may start to feel the brunt that all the other carriers have been.

 

[jp1030]

What happens at the end of the year when SWA is no longer hedged on fuel? Didn't they hedge around $26? I'm willing to bet that if oil stays where it CASM will stay up for a while and SWA may start to feel the brunt that all the other carriers have been.

No matter what happens in this industry I'll bet Southwest has a strategy to work around it. One thing they have always done is strategic planning. The airline I work for has never had anything but crisis or reactionary management.

jp

 

[Cheesemo]

Still Hedging

SWA is hedged to somewhere between 60-80% in 2005. The exact number escapes me.

Cheers

 

[P3 Tweek]

Rumors of RJ's

Back to DAS's original question, porfavor - ANYONE @SWA HEARING ABOUT POSSIBLE FUTURE RJ'S?????????????????

Gracias amigos un amigas
Tweek

 

[Vicman]

Erj?

I was browsing through May/june's Airways Magazine which featured the ERJ series....I saw an ERJ-195 series in various liveries including the SWA blue-top livery. the caption hinted that SWA was considering the idea.