Originally Posted by
e6bpilot
I would expect a CEO to be pro greed and anti labor, but I would rather know what I am up against rather than rah rah culture BS. It certainly won't stop me or anyone associated with labor complaining about it.
I don't think Elliott has anyone's best interests at heart other than their own, but I know that going in. Jordan stood up at investor day and said that he is selling airplanes and order book slots to raise cash to pay investors. He is doing that to fend off the activist investors and keep his job. Ummmm....thats corporate raider stuff, man! Don't send me emails telling me you Luv me and then sell out your own company to keep your job.
One common theme with Elliott that I agree with is that the people that got us into this situation probably aren't the best people to get us out.
The only thing I have heard any pilot say in Jordan's defense is "he is probably better than the alternative". I know 2 billion reasons that he isnt the answer. He is an accidental CEO who is way out of his depth. Time to get someone who can steer this ship into the next port.
Thats not the whole truth. SWA is on the books to receive almost 700 new airplanes between now and 2031. With the current fleet of over 200 Max's already, your talking close 900 plus airline fleet(when you retire the NG's). SWA plans to take every single one of them. The difference is they are getting a killing financially on those airplanes. Between being the launch customer, credits and discounts, it's pretty substantial. Boeing owed SWA billions of dollars. They decided to roll those into credits and discounts on the aircraft. Every time SWA takes an airplane, what they paid for it vs what it's actually worth is quit the spread. That's what BJ is talking about. As of today we will not be taking all those airplanes and flying them. Some will be sold. Some will be leased. Selling airplanes to a lessor and then get the cash is a normal financial exercise in the airline business. It is odd for SWA to do this. SWA owns close to 90% of the fleet. Only 29 Max's are leased,(out of 223) per 2023 annual report. SWA almost always buys airplanes in cash. Thats why they have in the neighborhood of 14 billion in unencumbered assets. It's been one of their strength's for 50 year's. If cash flow can't fund the capex, they usually don't buy unless it's on favorable terms.
SWA can't grow profitably anymore and keep buying airplanes. That's the bottom line. And worse, the only airplane Boeing can offer them are a 175 seat airplane. Which SWA does not need. It's a mute point anyway. As soon as EM finds a CEO to replace BJ, they will call the special meeting and he will be gone. Then the new CEO will decide what happens to all those orders. As other airlines over the last few years have become like banks with their frequent flyer miles, maybe SWA can get into the leasing business.