UAL pulling out of MDW

[ironspud]

Listen here ********************head, UAL is gonna hand your ass to you soon enough SWAFO along with the rest of the Legacy carriers. You'll be losing money soon enough when your hedges run out. I say bring your WT haulers into DEN and let's play...you'll hurt F9 substantially more than an airline that's been around over twice as long as your's.

ROTFLMAO

 

[Tejas-Jet]

You'll be losing money soon enough when your hedges run out.

Really????? And.....what would happen if SWA was working on hedges up into 2012? If they have the money to pay up front....why not?

Tejas

 

[HalinTexas]

And, what if fares come up and everyone is making money? Then the hedges won't really matter.

Can other airlines without hedges continue to lose money until 2009 when SWA hedges allegedly expire?

For those of you who wish ill upon SWA, you better worry about your own house first, then worry about SWA's hedges.

 

[F9 Driver]

Oookay?

...you'll hurt F9 substantially more than an airline that's been around over twice as long as your's.

Multiple choice;
UAUA's CASM is: a) Higer than. b) Lower than. F9 and WN?

bizjournals.com
Frontier expands flights
Thursday June 8, 7:08 pm ET
Frontier Airlines on Thursday announced additional flights between Denver and seven U.S. cities, as well as to sites in Mexico.
Denver-based Frontier (NASDAQ: FRNT - News) announced these changes:

Denver-Chicago Midway daily flights will increase to six starting Aug. 20.
Denver-Dallas daily flights will increase to seven beginning July 31.
The Denver-San Diego seasonal sixth daily flight will extend through Nov. 17.
A Denver-Phoenix seventh daily flight will resume Aug. 31.
A Denver-Las Vegas seventh daily flight will resume Aug. 31.
The airline also announced that flights to its seven Mexico destinations will rise an average of 30 percent during the peak winter holiday period.

"Having recently secured six new gates at Denver International Airport, we now have the operational flexibility to offer more optimal scheduling, such as our new Denver to Chicago evening flight," John Happ, senior vice president of marketing and planning, said in a news release.

Published June 8, 2006 by The Denver Business Journal

 

[Mugs]

Getting their A$$es handed to them from F9 & WN.

the SWA/FO

imp:

Probably true. At least to the point where the duplication of service in the Chicago market was not worth the cost. Not at all surprising. Apparently AA felt the same way about it.

 

[Mugs]

Multiple choice;
UAUA's CASM is: a) Higer than. b) Lower than. F9 and WN?

Shouldn't that be obvious simply by the nature of the operation? Had the point of CH11 been to match those CASMs, it would have required a liquidation and a new startup that is nothing like the current operation. If you are looking for those types of low CASMs, you don't achieve it with an international operation, multiple fleet types, first class, business class, etc.

 

[ultrarunner]

And, what if fares come up and everyone is making money? Then the hedges won't really matter.

It will matter to the share holder.

[/quote] Can other airlines without hedges continue to lose money until 2009 when SWA hedges allegedly expire?[/quote]

Not alledged. It's fact. The are currently hedged through end of '09. However, the next qurarterly report will likely show additional hedges.


[/quote] For those of you who wish ill upon SWA, you better worry about your own house first, then worry about SWA's hedges.[/quote]

Since no one on here really bothers to read financial statements, here is SWA's current hedge:


[FONT='Times New Roman',Times,serif]

The Company currently has a mixture of purchased call options, collar structures, and fixed price swap agreements in place to hedge over 70 percent of its remaining 2006 total anticipated jet fuel requirements at average crude oil equivalent prices of approximately $36 per barrel, and has also hedged the refinery margins on most of those positions.

The Company is also approximately 60 percent hedged for 2007 at approximately $39 per barrel, over 35 percent hedged for 2008 at approximately $38 per barrel, and approximately 30 percent hedged for 2009 at approximately $39 per barrel.​

[/FONT]

 

[Mugs]

SWA may get some additional hedges beyond 2009, but they are unlikely to be all that significant. The people that sell fuel hedge contracts probably will not make the same mistake all over again.

http://news.moneycentral.msn.com/category/topicarticle.asp?feed=AP&Date=20060602&ID=5767430&topic=TOPIC_FINANCING&iSub=1

 

[Metro752]

B6 incoming

 

[F9 Driver]

Shouldn't that be obvious simply by the nature of the operation? Had the point of CH11 been to match those CASMs, it would have required a liquidation and a new startup that is nothing like the current operation. If you are looking for those types of low CASMs, you don't achieve it with an international operation, multiple fleet types, first class, business class, etc.

Easy Mugs

The CASM comparison has more veracity than the argument Yuppy was making (that UAUA has a better chance simply because it has been around longer.)

Don’t ya think?