SWA SEC 8-K 19Sep07 . . . thoughts?

[8vATE]

USAIR has alot of cash on hand. As soon as they finalize the contract which should be very soon they will start building the empire. Southwest empiracle leaders are raising cash to fight off the onslaught. Grab some popcorn, this will be the AVIATION Battle of the BULGE!

Two points..

There is NO airline named USAir.
A callsign yes.. but no airline.

And you're smoking something good if you think there will be a "contract" anytime soon!

 

[CF34-3B1]

Does anyone know what some of these rumored 'targets' are worth? What's the market cap on say, AirTran, Alaska, WestJet, or whoever else people are speculating we're about to buy. Seems like we oughtta figure out if we're even in the ball park with 1/2 a billion plus what ever our cash on hand was.

 

[Lear70]

AirTran - $949.18 Million

http://finance.yahoo.com/q?d=t&s=aai

------------

Alaska Air Group - $979.14 Million

http://ca.finance.yahoo.com/q?s=ALK

 

[NewmanF16]

Reading this post reminds me why never to take financial advice from a pilot. What company in the world would mortgage aircraft to buy stock(even their own). We are going to buy some tangible asset(Airtran)IMO.

I've read that when interest rates are low enough, it is can be cheaper for a corporation to take a loan and buy back stock than pay dividends.

...I'm not a financial guru, but I did stay at a Holiday Inn Express last night.

 

[CF34-3B1]

AirTran - $949.18 Million

http://finance.yahoo.com/q?d=t&s=aai

------------

Alaska Air Group - $979.14 Million

http://ca.finance.yahoo.com/q?s=ALK

Thanks.

So for less than 2 Bil, we can buy both.

 

[Lear70]

Or, for $1 Billion, part-cash, part-stock, you could buy either one...

Or neither. I didn't stay at a HIE last night, so WTH do I know?

 

[atafan]

Think Internationally...

Not AirTran or Alaska. I think the purchase will be Global Aero Logistics (GAL) and operated as a separate subsidiary.

Of course I'm almost always wrong.

One thing for sure.

Whatever happens, it will not be anything we can come up here on any bulletin board.

 

[TOGA]

As of 31 March '07, Frontier's "Net Tangible Assets" total just under $210m. Plus, Mexico routes in/out of Denver and several SWA-heavy cities (MDW, MCI, BNA, etc.). Hmmmm.

 

[HalinTexas]

Think Internationally...

Not AirTran or Alaska. I think the purchase will be Global Aero Logistics (GAL) and operated as a separate subsidiary.

Of course I'm almost always wrong.

One thing for sure.

Whatever happens, it will not be anything we can come up here on any bulletin board.

More likely only part of GAL. I don't think SWA wants anything to do with DC10's and L10's.

The legacies that are making money are doing it with Int'l ops. There is still too much domestic capacity, so buying a domestic only (FL) or domestic/near Int'l (AK) doesn't make a whole lot of sense (cents). If SWA is going to increase revenue they need to go Int'l. Near and far. And they need to do it cheaply. So buying a small carrier that has all the authorizations needed makes the mose sense.

I believe that it might just be NAA with some orders for whatever 767-300's they can find. (NAA has 5 plus 5 757's) Not to mention that NAA pilots will willingly be stapled to the bottom of SWAPA's list.

I could be wrong as well. Frequently, that's the case.

Then again, SWA may go a completely different direction with all this "credit." Like no where in particular.

 

[mdf]

United. DEN, IAD, and now SFO. Especially for Int'l ops. They have a few of them over there.