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View Full Version : Happy New Year!


Fuseplug
01-02-2018, 01:46 PM
Southwest Airlines Announces Bonuses, New Investment ę CBS Dallas / Fort Worth (http://dfw.cbslocal.com/2018/01/02/southwest-airlines-bonuses/)

While I feel some IT improvements would be a better investment, I’ll take $1000. Great news for a lot of folks at SWA.


Smokey23
01-02-2018, 01:53 PM
Pssst....at the end of the day we're all only here for the money. So take the $#%@^ money and don't apologize for it!!!!

PropPiedmont
01-02-2018, 07:38 PM
Southwest Airlines Announces Bonuses, New Investment ę CBS Dallas / Fort Worth (http://dfw.cbslocal.com/2018/01/02/southwest-airlines-bonuses/)

While I feel some IT improvements would be a better investment, Iíll take $1000. Great news for a lot of folks at SWA.

SWA will still have over $400 million in new found money to allocate in other places after paying the $1,000 bonuses.


flyguy81
01-02-2018, 09:25 PM
SWA will still have over $400 million in new found money to allocate in other places after paying the $1,000 bonuses.

Iím sure a big chunk of that is going to the 40 Max-8ís coming in the next 2 yrs as firm options.

WHACKMASTER
01-03-2018, 04:11 AM
Iím appreciative of the 1K for sure and am also happy to have an accelerated MAX8 delivery schedule, but how does the MAX7 deferral effect the net growth on airplanes?

David Puddy
01-03-2018, 04:54 AM
Good for you at SWA! Thatís a nice gift. I found the MAX 7 deferral interesting too. Wonder about the thinking behind it if it is touted to be such an awesome airplane... Things that make you go hmmmmmm?

Regardless of your political affiliation and leanings, plenty of SWA employees should be thanking Trump for this gift... Doubt any thanks will be forthcoming...

Smokey23
01-03-2018, 05:48 AM
Everyone is up-gauging these days, David. When it comes to purchasing new aircraft, it's apparently better to purchase 175 seats instead of 149. The Max7 is the new 737-600 (i.e. Boeing will end up building very few of them.)

I know we're still taking on some used -700s, but that is probably only because we can get them for fire-sale prices these days.

WHACKMASTER
01-03-2018, 07:19 AM
Everyone is up-gauging these days, David. When it comes to purchasing new aircraft, it's apparently better to purchase 175 seats instead of 149. The Max7 is the new 737-600 (i.e. Boeing will end up building very few of them.)

I know we're still taking on some used -700s, but that is probably only because we can get them for fire-sale prices these days.

Maybe. The MAX7 has significantly more range than the MAX8 and better hot/high performance. Maybe theyíre not planning on Quito after all.

David Puddy
01-03-2018, 07:45 AM
Maybe. The MAX7 has significantly more range than the MAX8 and better hot/high performance. Maybe theyíre not planning on Quito after all.

Boeing is making a huge deal about the CSeries hurting the prospects of the MAX 7 and yet only SWA and I believe Westjet have ordered it.... Again, how is the CSeries hurting Boeing if the MAX 7 is not selling big to its primary 737 customers? Upguaging may be one reason - and you canít blame Bombardier for that trend. But thatís another topic for discussion...

Congrats on the New Years cash!!!!

WHACKMASTER
01-03-2018, 10:08 AM
Boeing is making a huge deal about the CSeries hurting the prospects of the MAX 7 and yet only SWA and I believe Westjet have ordered it.... Again, how is the CSeries hurting Boeing if the MAX 7 is not selling big to its primary 737 customers? Upguaging may be one reason - and you canít blame Bombardier for that trend. But thatís another topic for discussion...

Congrats on the New Years cash!!!!


%#ck Boeing. Theyíve gotten too big for their britches and insist on the world buying the Jurassic Jet (B737). Iíd LOVE it if SWA placed an order for 500 CS300s to replace our 500 -700s and tell Boeing to shove it. Not gonna happen though.

shoelu
01-03-2018, 11:16 AM
I’m appreciative of the 1K for sure and am also happy to have an accelerated MAX8 delivery schedule, but how does the MAX7 deferral effect the net growth on airplanes?
I'm not always on board with the Motley Fools prognostications but these predictions seemed to be based in reality and hard numbers from the order book.



"Southwest's recent order for 40 737 MAX 8s will enable faster growth for the next few years. The first 15 aircraft from this order will arrive in 2019, with the remaining 25 coming in 2020.

Meanwhile, Southwest Airlines will defer 23 of its 30 orders for the 737 MAX 7 from the 2019-2021 period to 2023 and 2024. This will partially offset the impact of the new order on its near-term growth.

Based on its restructured order book, Southwest Airlines is now set to add 47 aircraft to its fleet in 2019 and 2020 combined. This will boost its average annual fleet growth for that period to a little more than 3%.

Switching most of the orders to the 737 MAX 8 will also contribute to faster growth, as the MAX 8 has 175 seats in Southwest's configuration, compared to 150 seats for the 737 MAX 7. In total, Southwest Airlines is now positioned to increase its capacity at an average annual rate of roughly 5% for the next three years.

That said, while Southwest Airlines needed to move quickly to secure additional delivery slots in 2019 and 2020, it already has 20 737 MAX 8 options for 2021 and 21 737 MAX 8 options for 2022. This gives it the flexibility to wait a year or two before ordering more airplanes. By then, Southwest will know more about the impact of rising oil prices on its profitability and it will be able to confirm that its growth markets are living up to expectations.

Barring an unlikely collapse in its profitability, Southwest Airlines will probably exercise most or all of its Boeing 737 options for the early 2020s in order to maintain a mid-single-digit growth rate. Furthermore, if oil prices continue to trend higher, it may opt to accelerate the retirement of its oldest 737-700s in favor of the vastly more fuel-efficient 737 MAX 8. This could lead Southwest to order lots of additional Boeing 737s in the next few years."

https://www.fool.com/investing/2018/01/03/southwest-airlines-just-ordered-40-more-boeing-737.aspx

e6bpilot
01-04-2018, 05:49 AM
That pretty much confirms what I was told by a HQ pilot. They plan on accelerating some older 700 retirements based on keeping fleet age/cycles below a threshold where maintenance becomes a big impact on the operation. They are realizing that a cancelation early in the day due to a broken airplane has a big impact on an airline that flies their planes 7-10 legs a day. By replacing them with 175 seat planes, they can show growth without growing their costs (a max 8 requires one extra flight attendant and about the same amount of fuel as a 700 with 32 more seats).
Right now, itís easy, you just cancel a Dallas to Houston, BWI to BOS, or LA to SFO and get the airplane that way. That, however, creates ill will with business travelers that depend on those flights to get somewhere on time. If you ever stand in line at the customer service counter when that happens you will see what I mean.
I think the day when the 175 seat plane is the bulk of our fleet is coming sooner than later.

Loon
01-04-2018, 09:04 AM
Good for you at SWA! Thatís a nice gift. I found the MAX 7 deferral interesting too. Wonder about the thinking behind it if it is touted to be such an awesome airplane... Things that make you go hmmmmmm?

Regardless of your political affiliation and leanings, plenty of SWA employees should be thanking Trump for this gift... Doubt any thanks will be forthcoming...

As a SWA employee, I say Thank you President Trump!