Southwest to Defer 737-800s!

[BoeingBoy]

It's simple it makes business sense in the current environment

That is the simplist and probably only explanation. Even including FL's routes WN is still basically a domestic carrier and traffic growth domesticly is low. Just by still getting 738's that weren't deferred WN is growing domestic capacity without growing the fleet so why add even more capacity by increasing the fleet size? Unless proven wrong, I'll believe WN's statement that it wants to get it's financial returns in order before starting to grow the fleet again. I suspect that WN has been and is getting some heat from big investors, primarily mutual funds and the like, over it's stock performance - it's been under about $10/share for a pretty long time now. In addition to defering some of the 738 deliveries, WN has increased the amount of stock they intend to buy back and I believe I saw that they are going to double the dividend - all attempts to increase the stock price.

Jim

 

[SWA.TECH]

I bet WN would rather have DL's 700's than AT's 717's, just sayin.

 

[swamt]

Lets see WN got into the 737-800 game later than most airlines. WN has been Boeing's biggest US customer, they have launched several aircraft. Don't you think WN got to putting the pencil to what the 800 is doing and comparing it to what the 737MAX will do. After making the comparisons GK decided that if he was getting new aircraft why not go for the newest and most fuel efficient model. So why bring a few 800's on the property only to find out that the 737MAX is the better of the two. OR could GK have something else up his sleeve that he needs 1 billion for.

Don't let the cat out of the bag yet. Everyone just remember this move in about 2-4 years from now. I still say Alaska would be a great fit with SWA. BTW, they have 60 737-800's, 17 700's, and 12 900's. Maybe this is why he may need onother billion or so, he's looking at the future. 2014 and 2015 is going to be huge for SWA.
W/A goes away in 14, when we get the approval for international flights out of Hou, they are saying we will start in 15 with intl from there. Also, watch how quickly we will grow in Hawaii, island hopping as well as to and from. I think SWA is just preparing for a rather large and quick growth spurt between 2014 and 2016, although the intenational flights will start to come to life possibly as early as 2013. The next 5 years will be very interesting to say the least. Watch all the other airlines fight SWA for any and all request for internation flights. UAL is just the begining as we all have seen down in Houston, but, UAL don't have a leg to stand on, especially since they screwed the city of Houston by closing the HQ and moving all the jobs to Chicago, good move huh UAL??

 

[WorldTraveler]

You are absolutely right, SWAMT.
WN has enormous growth prospects ahead of it for which it needs to be fully prepared to compete. All of that growth will put a strain on earnings in the short term - but it is absolutely necessary they move forward based on the long term potential each of those opportunities present.
But it must be done from a position of strength and with the current network (as of today) operating at the absolute highest levels WN has ever known.

They can and will do it.

 

[[email protected]]

This is the end my only friend the end

 

[SWA.TECH]

This is the end my only friend the end

McDonalds is hiring fry techs......

 

[[email protected]]

So are you saying there will be displacement

 

[SWA.TECH]

no, just saying that I went on McDonalds corporate site and they are hiring fry tech's in various locations. Great starting salary, and a benefits package second to none.