SWA toast in 2009 ?
 

To all you finance experts:

Like to start a discussion about Soutwest Airlines financial future.
What will happen after fuel hedges expire and the airline has to compete
with all the other ones who have now lowered their costs?
Will employees loose their pay, will employer - employee relations change?
Will they be able to coast for a while due to cash on hand or are we looking at some drastic changes prior to 2009?

So SWA bashing please. It is a great airline, just wonder how long they will stay great.

zzzzzzz
 

Yawn, stretch. This old topic, AGAIN? Scratch, change channel......zzzzzzz

Contact eric stratton
 

I'm not a finance expert...SWA will make some changes;but still tough airline!!

BUT! YOU MUST TALK TO ERIC STRATTON...HE IS THE EXPERT!!!!!!!!!!!

They will probably raise prices so they don't lose money. What a novel idea! They have the ability to run a sucessful airline, unlike most of the so-called "legacies".JMHO


EXTW

They still utilize the hell out of their airplanes and crews with those 20 minute turns. That right there is a HUUUUGE advantage. They may lose their ability to blitzkrieg other peoples hubs at will, but I'm sure they'll be just fine.

Agreed. . . they will raise prices to offset the increase in cost. . . as opposed to attacking labor costs.

Yeah, so what if the customer doesn't like paying 40-60 bucks more per leg. By 2009, they won't have a choice. If you want to fly, you will have to finally pay what it really costs.

Ah, but the real question is will we be paid what were worth when passengers finally start paying what it costs?

Not initially, but if the union decides to get any balls. . . then perhaps. I wouldn't hold your breath on that though.

Obviously, I don't work for SWA, but why do people think that they are not competing just because they have fuel hedges? They have great forward-looking folks oin their finance dept. and the cash to backup buying hedges. SWA has ALWAYS had low fares. That won't change in any big way in the future, I believe. It's the productivity of the workers, good debt management, and sound business policies that make them successful. Their pilots get paid well, and the harder you work, the more money you make. IT IS YOUR OWN CHOICE! If you want to fly your sked then go home, so be it. If you want to pick up open time, then great. No one is forced to work overtime.

Legacies got in trouble with debt and management that gave themselves huge bonuses for many years before 9-11. Then, when labor got a taste of the money in new contracts, and things started to go sour in the economy, labor is the first to get screwed. Did anyone see management saying that they will forgo their hefty bonuses first? I think not. SWA isn't organized like that. Everyone knows that they value their employees. And because of that, employees reciprocate by working hard. Novel concept, huh?

I just tire of these stupid threads of "What will SWA do when they have to compete?"

oil will come down after bush is gone