SWA Side Letter.

[fam62c]

I'll just add from this side of the fence we are as shocked as you with how poorly this is being executed. Buying jets your giving away at fire sale pricing to a competitor? Let alone the breach of trust on both sides of the isle. This is not the SWA we were hired at to be a part of a family, we have become a means to an ROI statement.

Yes, it would seem that sending the 717's to Delta is allowing them to step on the gas while SW is stepping on the brakes. Maybe SW is losing interest in Atlanta? I also don't understand the -800 delays, that aircraft was supposed to lower CASM and increase efficiency. It seems that very recently the CEO was singing it's praises and talking about what an important part of the future it was.

 

[redflyer65]

I think maybe Gary is getting ready for some other business move, just pure speculation though.

 

[scoreboardII]

No speculation required, this is exactly how the AT lead up went: save cash, use the ROI goal as a cover, then buy when the price is right.

Not complaining, just showing the history.

 

[CF34-3B1]

Not sure I'd agree the price was right when we bought AT, especially considering we're giving away 2/3 of their airplanes. But I think you and Red are right, something else is coming. I just hope it's something like airframes or delivery slots from AA instead of an entire airline.

 

[scoreboardII]

One can only hope your right.



2008 SWA announces zero growth, reglass classics to prolong life, hoards cash. Sep 2010 SWA buys AT in worst economic environment since Great Depression, cancels 300 glass upgrade, still claiming to be shooting for 15%ROI.

2012, SWA announces zero growth, reflows 300 retirements and extends leases of old 300's, deferal of new larger capacity jets claimed as needed to make money, continues to cling to 15%ROI.

2014: Who's next?

 

[redflyer65]

I found it interesting about a month ago that we are actively re-crowning some of the -300's with issues (GSO is at least one location). It all fits now. Why would you go to that effort if you were going to fly them to the desert. Looks like we will get another 4-5 years out of the 'youngest' 300's.

Most likely they are getting ready to make a move on some AA routes/equipment.

 

[Nevets]

That makes our scope clause absolutely the best: NO codeshare in the U.S. anywhere, NO codeshare ever with RJs, NO international codeshare other than the reduced ASMs with one specific carrier in one specific country.

Your scope clause doesn't allow any intra-island (Caribbean and Hawaiian) RJs?

 

[Daddy]

I agree with the idea that there is something else in the works....Alaska, Jetblue, AMR assets, finding used 700's out there....who knows. There is a reason for the deferrals....to build extra cash for something. Time to stop fighting amongst ourselves, boys....we have a profession to defend.

 

[texman]

Something will be coming down the pike

 

[SWA Bubba]

Your scope clause doesn't allow any intra-island (Caribbean and Hawaiian) RJs?

The current contract allows this: RJ codesharing only in those two intra-island locations you describe. The proposed side letter tightens our scope clause significantly, and prohibits this. In this sideletter, Southwest may only codeshare with Volaris by name, to reduced ASMs (2% instead of the current 4%), only to Mexico, and only with full-sized jets. The voting is going on now.

Hope this helps,
Bubba