I know it is old news, but good info.
http://www.centreforaviation.com/an...pproach-to-growth-with-deferral-of-737s-74365
http://www.centreforaviation.com/an...pproach-to-growth-with-deferral-of-737s-74365
Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Well if I am not mistaken, even the reserve FO's get 15 days off and are well paid. Sounds better than a lot of other places.
>>>Now that they lost that crutch they have to actually compete to run an airline. Imagine that.<<<
No...it had nothing to do with fuel hedging. It's having to compete against the biggest crutch of all -- bankruptcy ...that allowed SWA's competitors to dump debt, totally screw their investors, creditors, and by shredding contracts and promised retirements -- employees.
And someone stupidly mentions that the playing field has been "leveled"? Yeah...bankruptcy and cutting your employees pay, benefits, and retirements in half does a real good job of that!! Nice way to operate and compete!!
>>>Now that they lost that crutch they have to actually compete to run an airline. Imagine that.<<<
No...it had nothing to do with fuel hedging. It's having to compete against the biggest crutch of all -- bankruptcy ...that allowed SWA's competitors to dump debt, totally screw their investors, creditors, and by shredding contracts and promised retirements -- employees.
And someone stupidly mentions that the playing field has been "leveled"? Yeah...bankruptcy and cutting your employees pay, benefits, and retirements in half does a real good job of that!! Nice way to operate and compete!!
>>>Now that they lost that crutch they have to actually compete to run an airline. Imagine that.<<<
No...it had nothing to do with fuel hedging. It's having to compete against the biggest crutch of all -- bankruptcy ...that allowed SWA's competitors to dump debt, totally screw their investors, creditors, and by shredding contracts and promised retirements -- employees.
And someone stupidly mentions that the playing field has been "leveled"? Yeah...bankruptcy and cutting your employees pay, benefits, and retirements in half does a real good job of that!! Nice way to operate and compete!!
Spot on Mach. The crutch as stated was smart business. Bankruptcy is a poor business plans crutch.
Alaska Air Group is basically a money printing press thanks to their monopoly route structure and lucrative code share deals, and even they can't come close to 15% ROIC. This goal is ridiculous. I'm settling in for a 20+ year upgrade. Growth is a long, long way off.
can't see how on the one hand they say they need 800's to reduce CASM, increase RASM, and on the other defer the planes you need to hit the target ROIC.
The SWA pyramid scheme is over.
>>>Now that they lost that crutch they have to actually compete to run an airline. Imagine that.<<<
No...it had nothing to do with fuel hedging. It's having to compete against the biggest crutch of all -- bankruptcy ...that allowed SWA's competitors to dump debt, totally screw their investors, creditors, and by shredding contracts and promised retirements -- employees.
And someone stupidly mentions that the playing field has been "leveled"? Yeah...bankruptcy and cutting your employees pay, benefits, and retirements in half does a real good job of that!! Nice way to operate and compete!!
Strange indeed, it saves cash but cash has a return of near zero percent. If a -800 can be used more profitably than the plane it replaces it may not return 15% but it will return more than cash. Buybacks and an increase in the dividend that still leaves the yield too small to attract dividend investors isn't going to move the share price; the company needs to move forward not run in place. The share price isn't going to go anywhere until SW can show investors that the company is going somewhere. If the CEO is trying to manage the share price it's not going to work, he needs to manage the airline first.
Why would Gary delay delivery of 30 800's? Simple in my book. Why spend 1 billion dollars on new airplanes if you can wait 4 years and then get an airplane (the Max) that is 10-12% more efficient than the 800. And have that added efficiency for the next 16 years. We have a fleet of almost 700 airplanes... delaying 30 deliveries for 4 years isn't going to cost the company that much in lost efficiency. It's a smart business decision.