Activist Investor pushing changes at SWA
#52
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Joined APC: Dec 2023
Posts: 519
Maybe it's just me but I still don't think AW is ready for prime time. He's a very smart dude and transparent, but he still lacks that communication skill's neccesary to deal with wallstreet, media and instutional investors. Which is what a CEO's main job is. Kelly, Bastian, Kirby all have the communication skills. Just watch them speak and deal with media, etc. AW can't do that.
Elliott see's a revenue problem only. SWA has a cost problem also. The only way out of it is to get more airplanes. Which we all know will not happen anytime soon. So as they pound sand about premium product, assign seating and squeezing the SWA customer, it still won't be enough. I read an interesting article today, which basically outlines SWA's depreciation runs about 1.5 billion dollars a year. Obviously thats a non cash item BUT these guys are crying about SWA valuations as being under valued. Well, you gotta fix that if want make the company more attractive to investors. Throw in massive mx costs(no airplanes), new expensive contracts(no new airplanes to increase ASM's), it's going to be a rough road that I think Elliott will have to fight. Love to hear their solution for that. Since they seem to think minimal cap ex to make this all happen.
Elliott see's a revenue problem only. SWA has a cost problem also. The only way out of it is to get more airplanes. Which we all know will not happen anytime soon. So as they pound sand about premium product, assign seating and squeezing the SWA customer, it still won't be enough. I read an interesting article today, which basically outlines SWA's depreciation runs about 1.5 billion dollars a year. Obviously thats a non cash item BUT these guys are crying about SWA valuations as being under valued. Well, you gotta fix that if want make the company more attractive to investors. Throw in massive mx costs(no airplanes), new expensive contracts(no new airplanes to increase ASM's), it's going to be a rough road that I think Elliott will have to fight. Love to hear their solution for that. Since they seem to think minimal cap ex to make this all happen.
#53
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Joined APC: Dec 2017
Position: 737 FO
Posts: 986
Whatever it is that they're after, it has nothing to do with making it better for employees. That's not their business. They want ROI at any expense.
They might give the appearance of "petting the bunny," as was stated somewhere else, throwing a bone to employees in their diatribe. Nobody is going to convince me that these types give a rat's behind about me or my well being.
This industry is littered with battle scars from such "corporate enhancers" if you will. It may not be a hostile takeover that they're aiming for, but it's certainly not anything that's intended for the benefit our employees.
They might give the appearance of "petting the bunny," as was stated somewhere else, throwing a bone to employees in their diatribe. Nobody is going to convince me that these types give a rat's behind about me or my well being.
This industry is littered with battle scars from such "corporate enhancers" if you will. It may not be a hostile takeover that they're aiming for, but it's certainly not anything that's intended for the benefit our employees.
#54
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Joined APC: Jul 2007
Posts: 3,760
#56
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Joined APC: Oct 2017
Posts: 326
#57
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Joined APC: Apr 2013
Posts: 3,648
I am guessing it is the Tucker link so no need to worry, I didn't click on it. I don't need a Russian agent to tell me that this situation is bad. I am already read up on how these guys work. I get my news from western sources, though, so thanks for the warning.
#58
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Joined APC: Oct 2017
Posts: 326
#59
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Joined APC: Mar 2023
Posts: 250
The only way investors such as Elliot even have this option, is if the current execs/BOD aren’t doing what they need to do. Clearly ours has been stuck in the old boys club for far too long and it shows. I’m not sure if they will get everything they want, but Elliot has definitely disrupted their little cartel.
#60
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Joined APC: Dec 2023
Posts: 519
Oh you get your info from Rachel Madcow, the one who pushed Russian disinformation? That's funny right there.
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