Just got back from several days at the school house. Some specifics that haven't been reported on here.
1. SWA is only making between $80-88 per flight. Previous profit per flight was around $2000 per flight. One can do the numbers & figure out how close to the margin things are at SWA.
2. SWA is doing everything it can to cut expenses further. Every office has been told to review their budget requests & find mandatory cost savings. Haven't heard a specific number but no one is exempt.
3. Bookings for 4th qtr are off even from last years performance....this is the reason for all the concern plus a down turn in the economy & the rise in oil prices. Price of oil now compared to last year is a major factor for their concerns.
4. Fuel savings is being stressed to every pilot at every turn...save on using the APU, shutting down engines sooner after landing, fly the profiles, etc. Lots of smart things pilots can do to make to help the bottom line. For example, saving fuel on the use of the APU at the gate (when temperatures permit) could raise the profit on one flight by 12%. However, it doesn't take much to turn a money gainer into a money loser either.
5. No more hiring for this year at this point but SWA will take 18 aircraft next year, plus -200 retirements + approximately 70 retirements will result in some hiring next year. Tentative schedule is to have two classes in early Jan. This COULD change with little notice but folks are being told to prepare for that right now (tentative).
6. I will talk to the PD tomorrow to check on what Mike reported about the cutoff in taking apps. I could see the logic for this since they have so many.
7. Glass cockpits coming to the -300 late next year. Vendor being decided now & first ones delivered in mid-'03. Big capital expenditures but this will save money in the long run. These CDUs will be put in the 700s eventually, they are better & have a better failure to mean time rate also (according to the vendor) plus they do much more...very hollywood!
Times are tough all over & SWA is trying everything to save the nickles now to have dimes to spend next year. This isn't what poolies or others wanting to join the pool want to hear but this is what is being talked about. The good news is we are still making money, the bad news is we need to make more to start the expected expansion it would appear. Hang in there everyone...if I get anymore news I'll be sure to pass it along.
chase
p.s. mike b, pm me your phone number again, thanks
1. SWA is only making between $80-88 per flight. Previous profit per flight was around $2000 per flight. One can do the numbers & figure out how close to the margin things are at SWA.
2. SWA is doing everything it can to cut expenses further. Every office has been told to review their budget requests & find mandatory cost savings. Haven't heard a specific number but no one is exempt.
3. Bookings for 4th qtr are off even from last years performance....this is the reason for all the concern plus a down turn in the economy & the rise in oil prices. Price of oil now compared to last year is a major factor for their concerns.
4. Fuel savings is being stressed to every pilot at every turn...save on using the APU, shutting down engines sooner after landing, fly the profiles, etc. Lots of smart things pilots can do to make to help the bottom line. For example, saving fuel on the use of the APU at the gate (when temperatures permit) could raise the profit on one flight by 12%. However, it doesn't take much to turn a money gainer into a money loser either.
5. No more hiring for this year at this point but SWA will take 18 aircraft next year, plus -200 retirements + approximately 70 retirements will result in some hiring next year. Tentative schedule is to have two classes in early Jan. This COULD change with little notice but folks are being told to prepare for that right now (tentative).
6. I will talk to the PD tomorrow to check on what Mike reported about the cutoff in taking apps. I could see the logic for this since they have so many.
7. Glass cockpits coming to the -300 late next year. Vendor being decided now & first ones delivered in mid-'03. Big capital expenditures but this will save money in the long run. These CDUs will be put in the 700s eventually, they are better & have a better failure to mean time rate also (according to the vendor) plus they do much more...very hollywood!
Times are tough all over & SWA is trying everything to save the nickles now to have dimes to spend next year. This isn't what poolies or others wanting to join the pool want to hear but this is what is being talked about. The good news is we are still making money, the bad news is we need to make more to start the expected expansion it would appear. Hang in there everyone...if I get anymore news I'll be sure to pass it along.
chase
p.s. mike b, pm me your phone number again, thanks
