Smooth at FL450

Must be why we are adding flights back to the schedule in June...1375/day up to 2400. You grabbed just a segment of his comment

RckyMtHigh

I’ll be happy if everyone keeps their jobs. That includes my buds at the Big 3.

rightseat

This is going to be a battle for survival- for all the airlines, including SWA. When you go into battle, the strongest, most prepared participant usually comes out on top. Not always but generally. Gary simply wants to be the most prepared.

We all need to remember Gary is a CFO down to his core. Every CFO knows cash is king - always. However, it is particularly true during hard times. Whether it is offensive or defensive cash - it absolutely will be king in this battle.

Love him or hate him - Gary may not be the CEO we would pick during routine times but he is the right guy to be in charge for this fight. He will be just as prepared for the cost side of the equation and that includes us. He WILL be coming asking for SOMETHING!! It is his job and his legacy.

I happen to personally believe he wants to avoid furloughs at almost but not all costs. The last thing he personally wants is to be the first SWA in history to furlough. Also, he needs his “warriors” if this turns into an opportunity because we do have so much cash.


Why so much CASH??? There really is no plan for all that cash right now, because the cards are still being dealt. It is simply ammunition to protect and defend or conquer —- depending on the circumstances and/or opportunities.

Mozam

I would not bet on that, SWA wants to just come out of this alive . They are not looking at any kind of smack down .

Privateer89

I couldn’t agree more with this. The primary goal is to survive longer than all the competition. As demand improves they will try to find work for all 700+ current airplanes and employees. Then there’s the Max. RTS training is still planned for the end of summer. They have greatly reduced deliveries but negotiated the ability to flex up or down depending on demand. Flex up by increasing deliveries that others don’t want anymore or flex down by taking the reduced deliveries and retiring NG’s. The big 3 have already committed to shrinking and announced plans of retirements because they don’t have a choice.

SWA is the only airline to go into this with a net positive cash to debt position by almost 1B. They now have almost 15B cash and 10B debt. They sold 2B in stock and got the 2B CARES grant. Of course they are burning through 30M-35M per day, but as the economy opens up that will improve. Those ratios equate to the best durability of any airline....by far. Why not have the cash? You can never have too much in times like this. If they don’t need it later they will pay off the debt.

4V14T0R

This isn't a single dimensional situation. Of course, the first priority is survival. It's foolish, however, to think GK isn't thinking past just surviving and thinking about what he can do on the back side of this thing.

I've seen quite a few of these types of comments and it's one dimensional thinking. The last few weeks have been about trying to make sense of the situation, but we're far enough into this to widen the lense and start thinking about other things by creating multiple strategies on the back side with the core focus of survival.

Why do you think we only put 100 a/c in long-term storage?

I'm not saying demand will snap back or there won't be furloughs, but there is definitely more planning than just survival.


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Squallrider

We’re keeping spooled up to take advantage of any increase in flying, we aren’t doing long term storage, not talking (yet) about early out or furloughs. United is withdrawing substantially out of lax, I think GK is betting on demand coming back and being able to more fluid than the others.

4V14T0R

Exactly. Also there's the fact that we're limiting planes to 67% so when/if we hit that level my guess is we add more capacity to match demand.


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Squallrider

for sure, once places like Disney reopen ppl will start having places to go. They will see things aren’t as bad outside the hotspots and get out and about. I for one and jonesing to get out of my house and go on vacation.

im not saying we are immune to anything, that we won’t furlough etc etc (I’m junior) but I think our strategy is to be flexible/fluid and take advantage of this any way we can to increase market share and suck up as much of the little current demand as possible.

CousinEddie

Always nice to see what a selfish opportunist is thinking as the lives and families of fellow aviators are devastated by the actions of a Communist Dictatorship.