Who is willing to take pay cuts this round of BKs?

[aa73]

Actually LUV fuel hedges through 2012 from their annual report:

• 2008 over 70% at $51 per barrel;
• 2009 55% at $51 per barrel;
• 2010 30% at $63 per barrel;
• 2011 over 15% at $64 per barrel;
• 2012 over 15% at $63 per barrel.

Like I said before, LUV starts losing their major fuel hedges after this year. By 2010 their advantage is basically eliminated. The question is whether the rest of the industry will be in bk by then.

AA767AV8TOR

AV8TOR,

Somehow, someway, LUV always finds a way...hey that rhymes! I have no doubt that, even if they post a loss, it will be microscopic compared to the rest of the industry. Even if they will be at a disadvantage, it will be a WAY smaller disadvantage then the rest of us. They just know how to manage in difficult times, unlike most other airlines.

73

 

[J and E's Daddy]

If taking a cut keeps the job I love then I am willing.

It's attitudes like that, that has made a mockery of our profession. Now we can see clearly why mgt laughs at us and has no respect for pilots. Because people like you will gladly get down on their knees and do anything, (I can't post my true thought here) to fly.
First of all, pay cuts do not anything, except cause more financial hardships. We have already seen that. Second, if a company can not afford to pay their employees, they don't belong in business. I took paycuts at my last two companies, and still ended up unemployed. No more paycuts. Costs of living are getting too steep and some of us have families to feed. I will find another line of work before I am stuck working in a highly skilled profession before I work for poverty wages. Sooner or later, people like you will wake up and realize, this is a great job, and we ARE highly skilled and trained professionals and we should be compensated as such. We should NOT have to work for the same wages as a Home Depot or Lowe's employee, and nor should we ever have to pay for training or subsidize rising fuel costs. Until then, we will continue to be looked down upon and laughed at. MGT will ask for paycuts and concessions, because for years we have given in and to what? Nothing in return, that's what. Our jobs? Don't get me wrong, I love what I am doing, but I can not do it at wages that won't allow me to support my family.

 

[Tejas-Jet]

Actually LUV fuel hedges through 2012 from their annual report:

• 2008 over 70% at $51 per barrel;
• 2009 55% at $51 per barrel;
• 2010 30% at $63 per barrel;
• 2011 over 15% at $64 per barrel;
• 2012 over 15% at $63 per barrel.

Like I said before, LUV starts losing their major fuel hedges after this year. By 2010 their advantage is basically eliminated. The question is whether the rest of the industry will be in bk by then.

AA767AV8TOR

Man...have we ever been round and round on this subject.

OK....Yes, your numbers are correct ...as of right now. But, because the price of oil fluctuates so much, it doesn't make sense to increase the percentage that we are hedged for later years.

I can tell you this...the guys/gals in the fuel office have not been laid off...they are still working and still negotiating better hedge agreements.

That 55% that SWA is hedged for 2009, is as of right now...Call me crazy but, something tells me that SWA will be hedged for alot more than 55% for 2009 NLT December 31, 2008

 

[Dumb Pilot]

OK....Yes, your numbers are correct ...as of right now. But, because the price of oil fluctuates so much, it doesn't make sense to increase the percentage that we are hedged for later years.

Your capacity to hedge is directly related to your revenue, you cannot hedge more than the available cash at hand. But you are correct, you can renegotiate hedge prices any time you like but that is also related to current market prices, you can increase your hedge percentage for 2009 like you said but I guarantee you that not at $51/barrel (or $63 for that matter) besides the point that after the 55% of fuel at the hedge accorded price, you start paying full price. Hedging only delays the effects of rising fuel prices, It doesn't eliminate them.
About it not making sense to hedge for a long period of time in a fluctuating market???????? ANA hedges 100% for years in advanced and they have been hedging fuel for a little longer than SWA.

 

[FO 4 Life]

You don't know what you're talking about. LUV is 70% hedged in 2009 and through 2012. If you want to be pissed about fares, why dont you throw a little at companies like Va and Allegiant. They charge nothing and their employess happily work for peanuts. Swa has to compete with these losers, but still pays a good wage and benefits. Now back to the thread.............

So how great was it to work for SWA the first few years they started? SWA had the top pay scale back then too right?