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Originally Posted by unit monster
(Post 879111)
what's O & D?
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Originally Posted by Gunfighter
(Post 878268)
They've already started.
Now back on topic. Will ground comm in ATL be "SWA XXXX, Citrus Colors" or "SWA XXXX, AirTran Colors"? I like the first, but it could be confused with "Citrus Colored", which would have people looking for an orange airplane. In a couple years they will be orange, but for now they are still white. |
Originally Posted by GBU-24
(Post 879148)
Or maybe it would be “Citrus XX” in faded oxidized Southwest colors…
Southwest airlines is paying $670 million cash out of the $1.4 Billion purchase price (rest in a stock swap?) and assuming $2 Billion in debt. Welcome to the big time with assuming debt (that's what got most of the Legacy Carriers in trouble). Not wishing bad things at Southwest just thinking that taking on Debt (for whatever reason - buying A/C, etc.) has never been a part of the organizational culture or plan. For those of you who didn't know Delta once owned/paid cash for all their airplanes (as recent as the mid-80s) until some MBA whiz kid's demonstrated that financing A/C is much preferred to owning. We all know how well that turned out. No matter how strong SWA is corporate debt is not the same as a 30 year mortgage at 4.25%. Shorter terms and higher interest rates than you might see in the news/business pages. I know Delta is aggressively paying down debt and paid CASH for its last two 777s. SWA is looking more and more like the rest of the airlines (cost for labor, inability to control their turns at LARGE airpots (ATL, LGA, etc)). |
Originally Posted by Gunfighter
(Post 878268)
They've already started.
Now back on topic. Will ground comm in ATL be "SWA XXXX, Citrus Colors" or "SWA XXXX, AirTran Colors"? I like the first, but it could be confused with "Citrus Colored", which would have people looking for an orange airplane. In a couple years they will be orange, but for now they are still white. Photos: Boeing 737-7H4 Aircraft Pictures | Airliners.net |
Originally Posted by DAL73n
(Post 879152)
Thought I'd share an interesting fact I found hidden in one of many articles written about this deal.
Southwest airlines is paying $670 million cash out of the $1.4 Billion purchase price (rest in a stock swap?) and assuming $2 Billion in debt. (The actual "out of pocket" price was only $270 million as they acquired the $400 million in cash that AirTran has in the bank. A lot better "bang for the buck" then Frontier would have been! Maybe Gary Kelly was just floating the Frontier purchase as a feeler to how such a transaction would be received?) |
AirTran executives could make millions on Southwest acquisition | ajc.com
--- One-time costs related to the acquisition and integration of AirTran are expected to be in the range of $300 million to $500 million. As of June 30, 2010, the combined unrestricted cash and short-term investments of the two companies was $3.7 billion. Southwest Airlines intends to fund approximately $670 million in cash consideration for the transaction out of cash on hand. Since June 30, Southwest's cash and short-term investments balance has increased from $3.1 billion to $3.3 billion. In addition, Southwest Airlines has a fully available, unsecured revolving credit facility of $600 million. source: http://www.southwest.com/about_swa/f...ABOUT-INVESTOR --- http://www.bloomberg.com/news/2010-0...rt-ruling.html --- press release Sept. 27, 2010, 3:59 p.m. EDT · Recommend · Post: Fitch Affirms Southwest Airlines at 'BBB'; Outlook Stable CHICAGO, Sep 27, 2010 (BUSINESS WIRE) -- Fitch Ratings has affirmed the debt ratings of Southwest Airlines Co. /quotes/comstock/13*!luv/quotes/nls/luv (LUV 12.81, -0.13, -1.01%) following today's announcement that LUV plans to acquire AirTran Holdings, Inc. /quotes/comstock/13*!aai/quotes/nls/aai (AAI 7.34, -0.01, -0.14%) in a cash and stock deal with an equity value of approximately $1.4 billion. Fitch has affirmed the following: --Issuer Default Rating (IDR) at 'BBB'; --Senior Unsecured Debt at 'BBB'; --$600 million Unsecured Revolving Credit Facility expiring 2012 at 'BBB'; --Secured Term Loans due 2019 and 2020 at 'BBB+'. The Rating Outlook for LUV is Stable. Fitch's ratings apply to approximately $2.5 billion of outstanding notes and loans. The affirmation of LUV's [BBB] ratings reflects Fitch's view that the AAI acquisition represents a good strategic fit, opening up new and attractive revenue and margin expansion opportunities for LUV without driving a significant deterioration of credit metrics. While LUV will be assuming approximately $983 million of balance sheet debt and approximately $1.7 billion of capitalized aircraft operating leases at AAI, the transaction is likely to result in material revenue synergies that the company estimates at $400 million annually by 2013. In particular, margin growth should be supported over time by the establishment of a strong position in the Atlanta market, where LUV expects to stimulate considerable demand through the introduction of increased low-fare service. The AAI acquisition also deepens LUV's market presence in attractive East Coast business markets, including Washington, New York and Boston. By funding the acquisition with equity and approximately $670 million of excess cash on the balance sheet, LUV avoids the need to increase debt beyond amounts assumed from AAI. Factoring in AAI's heavier reliance on leased aircraft, pro forma lease-adjusted debt to EBITDAR (using Fitch's 8x lease multiple) could fall below 3x by 2012. The main driver of this process will be the expected paydown of over $900 million in scheduled maturities during 2011 and 2012. Assuming jet fuel prices below $2.50 per gallon and a relatively stable revenue environment with moderating growth in passenger revenue per available seat mile next year, pro forma 2011 free cash flow (FCF) will be solidly positive. source: http://www.marketwatch.com/story/fit...k=MW_news_stmp ---
Originally Posted by corl737
(Post 879163)
The boys and girls in the Puzzle Palace in Dallas have proven to have sharpened their bean counting skills during Gary Kelly's rein. Not saying that past performance is a guarantee of the future but I certainly wouldn't second guess the transaction.
(The actual "out of pocket" price was only $270 million as they acquired the $400 million in cash that AirTran has in the bank. A lot better "bang for the buck" then Frontier would have been! Maybe Gary Kelly was just floating the Frontier purchase as a feeler to how such a transaction would be received?) |
Originally Posted by corl737
(Post 879157)
There are only three airplanes in SWA's fleet that are not Canyon Blue or specialty paint jobs. Those three are being retained as "historical" although even they received nice new metallic paint instead of the old fade-to-brown Desert Gold.
Photos: Boeing 737-7H4 Aircraft Pictures | Airliners.net |
Originally Posted by forgot to bid
(Post 878867)
All in favor of SWA/AAI Merger having its own Sub forum under the Major section instead of being castigated, as most of DAL/NWA's best merger discussions, to the out of sight out of mindpilot lounge > mergers and acquisitions pages, please say I.
FTB says I. Thats 1. Not to mention, the success of this one thread versus the existing UAL/CAL thread, and the popularity of this thread for DAL pilots ;) makes me think that the SWA/AAI merger has proven itself to be worthy of a sub forum like the UAL/CAL merger. Another words, if UAL/CAL got one I think SWA/AAI deserves one because I know I wished the DAL/NWA one had it. do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it do it :D We have been advised to discontinue discussing the possible merger because it might be used against out pilot group in the event of arbitration. Let it be known that arrogance abounds in the airline industry and it is not exclusive to the SWA pilot group. My advice would be for all of us to get over ourselves and quit blaming another pilot group for our negative career progression to date. Have a nice day! The Oscar BTW - There is a story that continues to be told that a few years back when the line up in DTW was substantial someone asked the lone SWA plane waiting in line "Hey Southwest, WHAT COLOR IS THAT ANYWAY?" After a brief pause the answer came back "THE COLOR OF MONEY." No one commented after that. It just a story though. My children who are brainwashed still say it when a SWA plane flies overhead. |
Originally Posted by OscartheGrouch
(Post 879284)
Was this thread about the SWA/AAI merger or about DAL/NWA and UAL/CAL folks hijacking it? I frankly have lost the ability to distinquish this thread from the "the latest and greatest thread" that is all about someone else.:eek:
We have been advised to discontinue discussing the possible merger because it might be used against out pilot group in the event of arbitration. Let it be known that arrogance abounds in the airline industry and it is not exclusive to the SWA pilot group. My advice would be for all of us to get over ourselves and quit blaming another pilot group for our negative career progression to date. Have a nice day! The Oscar BTW - There is a story that continues to be told that a few years back when the line up in DTW was substantial someone asked the lone SWA plane waiting in line "Hey Southwest, WHAT COLOR IS THAT ANYWAY?" After a brief pause the answer came back "THE COLOR OF MONEY." No one commented after that. It just a story though. My children who are brainwashed still say it when a SWA plane flies overhead. Never heard that one. I did take great pride in ensuring safe taxi speed of the WN guys diving out of the ramp at V1 behind me, though. :) |
Originally Posted by MILUAL
(Post 878213)
I'm guessing management learned their lesson on wanting pilot input on business decisions. They could have had F9 for a tenth the cost with better mexico service and an easier fleet to sell. Maybe no 73s, but still a market in the world for airbus vs 71s. Leased or not I don't believe southwest really wants them. Yes, they will operate them, but only because they have no real choice. Also Denver vs ATL. Which would you rather fly out of. Delta owns ATL and does a good job at a bad airport. Anybody else will always be a distant 2nd. Den is a nice airport with United bumbling around as #1. F9 is #2, and combined with SWA they could be the show there.
Add to that if SWAPA had thrown even a small seniority bone to them they probably would have taken it. 500 pilots in the bottom part of the list vs 1700 pilot on probably a percentage based intergration throughout the whole list top to bottom via M-B. People who don't think that will happen need to read every SLI award in recent history. I thin swa would be better off for the $ with the F9 thing and I think the SWAPA pilot's career would be better off too. all JMHO Sidenote: a Frontier jumpseater made it sound like the vast majority are very happy SWA did not win despite the fact they don't like republic. They say it beats furlough for however long. Ask them?? Idunno. All that being said, this deal was never going to happen anyway. Quick reaction SLI in 24hrs. and SWA bid premium required over Republic. SWAPA made out as the bad guys that blew the deal, but little get mentioned about FAPA demands, like $3,000/mo. pay for furlouhees, relative seniority and 3 yr. DEN base protection. And they were bankrupt. |
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