short-term losses to ensure long-term gains has always been an accepted practice. kinda like what we're doing to JB in EWR.

 

Ryan--

I am very familiar with Southwest's fuel hedging program. I have been a pilot for Southwest for almost 6 years now and they have done a great job of educating the employees as to what fuel hedging is and what it is not. Unfortunately for you you'll have to wait until the end of 2010 for the hedges to fully run out. We're hedged at a minimum of 20% until then. Why you would think Southwest will go out of business at that point is beyond me. Why you would WANT them to go out of business is equally as curious.

I sent my previous question out to see if you really know what you're talking about. You don't, just as I thought.

By the way, I totally agree with BoilerUp and that's a cool Avtar.

S.B.

 

The major difference in your example is EWR has been CAL's for a long time, and JB is the upstart. Conversely, DAL has been Southwest's for a long time and American trying to bully in, selling seats below break-even in an attempt to run SWA out of DAL and to DFW where they could really put a pounding on them.

I don't think its going to work. I think AA will sustain large losses on the redundant DAL/DFW service while Southwest will continue to thrive.

 

not speaking for anyone but myself but i certainly don't want SW out of business. i've gotten too many jumpseats and treated too well to wish that. what i WOULD like to see is everyone paying the same for fuel so management has no more excuses for why they're incompetent ****-ups and can't run an airline anywhere but into the ground. but, hey--our highly-paid stupid mangelers told us hedging was too expensive--and that's not SW's fault.

 

Southwest earned $82 million in the fourth quarter 05. They made $255 million from fuel hedges. $82 million MINUS $255 million = LOSS OF $173 million for Southwest (Hey, that is almost exactly how much UAL lost in Q405).
For the record, I don't want Southwest to fold, have layoffs, or even really stop making money. All I want to see is their strangle hold on the industry to stop. I believe SW's low fares have pulverized the rest of the industry. As soon as their largest expense (fuel) tripples, they will raise fares.

Higher fares on SW = Higher fares everywhere else = Better industry!


Yes, I could easily break this down into a story like that but I don't have the time right now. The reason I made that post was because first I made a post that showed how Boeing was beating Airbus. Then someone said they had no idea how I got to that conclusion. Then I just listed the numbers and let the facts speak for themselves. Then they still didn't understand so I broke it down into a story about Timmy, Johnny, and a lemonade stand, and finally some people got it.
Sorry, but no time tonight for the SW story. Maybe later though.

 

Pass on the story.

 

I will have to find this in writing the next time I go to work but I believe without hedges SWA would have been profitable 3 out of 4 quarters in 2005 and profitable for the whole year. A meager yearly profit no doubt but no losses.

Yes, I'm onboard with higher fares across the board but you have to realize SWA will always have the lowest RELATIVE fares. That's been their claim to fame for 35 years. That and good customer service.

Kill Bill et al are always welcome on our jumpseat. We take so many people to work every week, even pilots from airlines who have been less than friendly to us over the years. It's our pleasure. CASS makes it so easy now. We had 4 off-line jumpseaters in the cockpit on my last trip alone.

S.B.

 

I wasn't aware a 737 could hold four jumpseaters? If you had four jumpseaters in the cockpit of a 737, you may not want to share that in a public forum! Hopefully you meant you were able to accomadate four jumpseat riders on your airplane.

 

CALCAPT--

Notice I said we had 4 jumpseaters in the cockpit on my last TRIP, not on one LEG. I'm sure you know the difference between a trip and a leg. This trip had 7 legs. 7 legs times 2 jumpseats equals the possibility of carrying 14 jumpseaters in the cockpit on that particular trip. We carried 4.

I suppose you think the "wing off light" above the F/O actually will make the wing fall off too. HAHAHA....

Good Luck---

S.B.

 

SWA reminds me of the person that moves next to an airport, and then complains about the noise. Love has had the wright amendment since DFW was born. They knew about this restriction then. So why not move to DFW now? Delta left a bunch of open gates for them.