Originally Posted by Justdoinmyjob (Post 1189532)

I would think that the 717 deal fell through and SWA is pishing back the deliveries because they can't get out of the leases on the 717s. Delta was playing SWA against a leasing company with a large number of 319s. Guess we'll know when something shows up.

Originally Posted by johnso29 (Post 1189540)

Or they have too many ASMs?

Originally Posted by gloopy (Post 1189553)

Or they figured out they are taking on too much capex too quickly and maybe want the cash and credit to get, say, something else aviation related.

Originally Posted by MistyFAC (Post 1189651)

No, they just need more cash on hand to pay off government officials.

Originally Posted by Thrust Normal (Post 1189495)

Southwest delays 737 deliveries, boosts dividend

Southwest will delay deliveries of new planes; CEO wants to stay out of petroleum business

By Joshua Freed, AP Airlines Writer




Southwest Airlines is pushing back delivery of 30 Boeing 737s to save money and get a better return on its investment, the airline's CEO said on Wednesday at its annual shareholder meeting.
Southwest got its first 737-800 from Boeing Co. in March. It had planned to get 20 more next year and 10 more in 2014. Now those deliveries will be pushed back to 2017 and 2018, according to chairman, president, and CEO Gary Kelly.
He said Southwest will save more than $1 billion through 2014 with the delays. And Kelly said he wants the airline to hit its targets for return on its investments before its fleet grows. Southwest's fleet size next year will be the same as this year or down slightly, he said. Southwest flies only 737s, and it had 558 at the end of March. Its AirTran unit flies 737s as well as 717s.
Kelly also said Southwest won't be getting into the petroleum business anytime soon. Delta Air Lines Inc. is buying an oil refinery to make or trade for 80 percent of its domestic fuel needs, and raising the question of whether other airlines might want their own refineries, too. Jet fuel has become the largest single expense for airlines — $6.5 billion for Southwest this year, Kelly said.
When a shareholder asked Kelly whether the airline would think about buying a natural gas field as a hedge against rising fuel prices, Kelly acknowledged that managing its fuel costs "is a huge challenge." Southwest already enters into derivative contracts to try to soften the price swings of jet fuel. Getting into the natural gas business would force it to manage that risk, too.
"In all humility, we would admit to you, we don't know the oil and gas business, and the airline business keeps us pretty busy as it is," Kelly said. "We don't want to take what is already a high-risk business and make it even riskier."
Southwest also said it will boost its share repurchases, and it doubled its quarterly dividend to a penny per share, from 0.45 cents per share previously.
Southwest previously authorized up to $500 million in share repurchases, of which it has spent $325 million. On Wednesday It raised its ceiling for repurchases to $1 billion. Southwest held its annual meeting in Dallas, where it is based. On Wednesday its shares rose 17 cents, or 2 percent, to $8.24 in afternoon trading following the dividend and jet-deferral news.

Originally Posted by Jack Bauer (Post 1189725)

and they say it is better to give than to receive so we got that going for us.

Originally Posted by Jack Bauer (Post 1189725)

Just curious if anybody remembers the not so distant past when GK was upselling the SWA/Airtran pilots on the merger? The talk from GK of huge growth and movement. This is a perfect example of what management does/promises when they want something. They tell you great things are on the horizon. If you just do this thing (fill in the blank) you will be so happy you did.

This is what makes me nervous about the whole "we have great opportunities on the horizon....the pilots will be sooo happy if they expedite negotiations and learn to give a little more" at Delta. In the end it usually ends up being nothing. But you did get the chance to give and they say it is better to give than to receive so we got that going for us.