Southwest/AirTran to Sub-Lease 717's to Delta in 2013......

[Ozark]

This would begin by mid 2013 with about 3 per month going to Delta.






http://www.marketwatch.com/story/southwest-airlines-delta-air-lines-and-boeing-capital-reach-a-tentative-agreement-to-sublease-airtran-boeing-717-fleet-2012-05-22

 

[swamt]

This would begin by mid 2013 with about 3 per month going to Delta.


Now do you think the AT guys will believe us when we post. I remember from the beginning that they were all saying that we were just spreading fear to get them to vote something in right away. Like I have stated before, we are more informed than you guys think... Thanks for the link Ozark.



http://www.marketwat...leet-2012-05-22

 

[swamt]

Here's another article;

http://www.marketwat...leet-2012-05-22

 

[WorldTraveler]

Since this transition won't begin until mid-2013 and the aircraft will leave at the rate of 3 per month, it is quite likely WN's revised fleet plan is sufficient to cover for the removal of the 717s.

The timeline also seems to support the idea that WN will complete the FL integration by 2015.

 

[BoeingBoy]

WT,

Your guess that DL would get the 717's was right. You missed on the part about a swap for 737-700's although WN will end up with an all 737 fleet again. Also it sounds like Boeing's role will be limited, possibly to their current role of lessor of some of the 717's.

I'm still not convinced that this deal will be cheaper in the long term - the 717 leases, and presumably the subleases since WN won't want them back, go to at least 2021. The lease rates, and presumably the sublease rates, are based on amortizing the cost of the 717's when new - the same as would be the case for a new plane - but the other saving of new versus older are lost. But just like the refinery, DL's making it's bed and will have to lie in it a long time.

Jim

 

[WorldTraveler]

except I never said that the 737-700s WOULD go - just that DL would throw them in if it was necessary to get the deal done.

What also wasn't mentioned in the deal was a rework of WN-FL gates in ATL - don't know if that was part of the deal or not but with the new international terminal in ATL opening, DL does have a bit more flexibility with gates.

Obviously DL seems to value alot less cash involved in the deal compared with spending a lot of cash up front for the most recent technology. DL is marching toward the mindset that reducing debt is important and that fleet decisions don't necessarily require taking new airplanes from Boeing or Airbus to meet the goals.
WN also is stretching out its deliveries and will meet its financial goals.

There are multiple ways to meet financial objectives; the biggest value in this transaction is that DL and WN managed to work together to both each other's benefits - along with Boeing's help.

 

[southwind]

WT,

Your guess that DL would get the 717's was right. You missed on the part about a swap for 737-700's although WN will end up with an all 737 fleet again. Also it sounds like Boeing's role will be limited, possibly to their current role of lessor of some of the 717's.

I'm still not convinced that this deal will be cheaper in the long term - the 717 leases, and presumably the subleases since WN won't want them back, go to at least 2021. The lease rates, and presumably the sublease rates, are based on amortizing the cost of the 717's when new - the same as would be the case for a new plane - but the other saving of new versus older are lost. But just like the refinery, DL's making it's bed and will have to lie in it a long time.

Jim

Again, will repeat...................."Nothing Ventured, Nothing Gained!"

 

[BoeingBoy]

except I never said that the 737-700s WOULD go - just that DL would throw them in if it was necessary to get the deal done.

You didn't say that DL would get FL's 717's either - just talked about it a lot, as you did the swap of planes. But your guess was right in part.

Jim

 

[buscador]

I cant believe it, you mean SWA is going to get rid of the equipment that made up over 80% of that international(well near international) powerhouse airline that SWA paid $500 million too much for??,, Well who would of ever guessed it

So it really wasnt for the equipment then, I bet it was for all the culture and non arrogant, non demanding, grateful work force. Cause it couldnt be possible that SWA wanted just the routes and gates at ATL, no way...

so when I hear a AT pilot bragging infront to SWA pilots(actually happened), how he is going to be the #1 F/O in Dallas after his training and he hasnt even flown one Trip at SWA,,we should all just say, Welcome aboard and thank you, for saving SWA, we accept your arrogance and we are excstatic we have you here!!

DOH, yep that would of been fair

 

[QA4Jet-A]

I cant believe it, you mean SWA is going to get rid of the equipment that made up over 80% of that international(well near international) powerhouse airline that SWA paid $500 million too much for??,, Well who would of ever guessed it

So it really wasnt for the equipment then, I bet it was for all the culture and non arrogant, non demanding, grateful work force. Cause it couldnt be possible that SWA wanted just the routes and gates at ATL, no way...

so when I hear a AT pilot bragging infront to SWA pilots(actually happened), how he is going to be the #1 F/O in Dallas after his training and he hasnt even flown one Trip at SWA,,we should all just say, Welcome aboard and thank you, for saving SWA, we accept your arrogance and we are excstatic we have you here!!

DOH, yep that would of been fair

You should be on the Culture Committee. How warm and welcome you would make everyone feel!

 

[swamt]

You should be on the Culture Committee. How warm and welcome you would make everyone feel!

He is.

 

[buscador]

You know I am not on the welcome committee,, if i was on that committee i definitely would be finding ways to figure out how to keep the AT f/a's from getting too bored on their PAID LEAVEs ,, yep thats correct,, during the transition and the release of 717s,

SWA will be PAYING FULL SALARIES to many AT flight attendants for several months(guess a %46 pay raise wasnt enough) ,, there will be many AT f/A/s happily getting paid for doing absolutely NOTHING, while they take months off fully paid,,,while the original SWA employees bust their a$%#s to earn their paychecks , now i know all the airtran people probably find this justifiable seeing as AT got so robbed and didnt get DOH,,

Too think we F/A s at SWA are told not too hand out two bags of peanuts as a cost saving method,,,and yet SWA will pay many at AT months and months of pay for doing absolutely NOTHING,, I need to look up Fair and reasonable, wow,,wow

I am willing to bet that not ONE AT person feels so much gratitude that they give some of the FREE money back, anyone willing to take that bet,,

Ugly seems to only get uglier

 

[swamt]

I know your not. I was being a smart "A". LOL.

 

[buscador]

O I know, at least some people are still funny and try to use some humor,, good ones QA4, Swamt...keeping a sense of humor

 

[whatkindoffreshhell]

I can get a second bag of peanuts on WN ?