Everybody(Airline) NOW getting shafted,

[NewHampshire Black Bears]

If anyone..wants to SHOOT the messenger,...well I can't stop them.

However, with a First Time..(last qtr loss), WN stock is (way) down to at least a 5 year low !

"THIS" scenario, I thought I never see !!

 

[FWAAA]

Part of the problem, as I see it, Bears, is that WN has been taking its eye off the ball. First, it moves into SFO and now has bought slots at LGA. Its stock was down 12% on Wednesday and 11% more on Thursday. On top of that, its workgroups will be banging the drum for higher wages (much like at AA) and with WN's profitable history, its unions will likely be more adamant for raises.

On the other hand, WN stock is on sale for almost 50% off its 52 week high and it might be a good time to buy . . .

 

[jimntx]

I wouldn't worry about WN if I were you. This drop just saves them from having to do another stock split.

WN likes for their stock to stay cheap so it will trade. WN has never paid a dividend; so, investors get their return via stock splits and subsequent increases in share price. Any time the stock price gets within shouting distance of $20/shr, they split the stock.

It's how they now have millionaire flight attendants, pilots, mechanics and rampers still working for them. In the early days when WN couldn't afford to give raises, they gave stock in the company. That stock subsequently split, split again, then split again. After each split the stock would rebound. There are a number of employees still working who have been there since day one who are millionaires because of their stock holdings.

The fact that they continue to work is a testament to how good a company WN is. They love the job. They love the company. Having lots of money is not a reason to quit as far as they are concerned.

 

[FWAAA]

I wouldn't worry about WN if I were you. This drop just saves them from having to do another stock split.

WN likes for their stock to stay cheap so it will trade. WN has never paid a dividend; so, investors get their return via stock splits and subsequent increases in share price. Any time the stock price gets within shouting distance of $20/shr, they split the stock.

Never? Jim, you ought to buy some WN stock. If you had, then this wouldn't be news to you.

Yesterday, Southwest announced its 129th consecutive quarterly dividend:

Southwest Airlines Declares 129th Consecutive Quarterly Dividend

DALLAS, Nov. 20 /PRNewswire-FirstCall/ -- Southwest Airlines' (NYSE: LUV) Board of Directors declared a quarterly dividend of $.0045 per share to Shareholders of record at the close of business on December 11, 2008 on all shares then issued and outstanding. The 129th consecutive dividend will be paid on January 8, 2009.

SOURCE
Southwest Airlines

http://www.southwest.com/about_swa/press/prindex.html

Southwest will survive, but this long-term shareholder is not happy with some of the decisions of late. I fully expect them to announce an order for regional jets in the coming weeks.

 

[does this plane go to paris]

Many years ago I heard some "expert" describing the terrible shape of the airline industry, I believe that it was a year or two after 9/11. Everyone was bemoaning the fact that the industry as a whole was in awful, except for one, WN. Someone described WN as being an excellent company and it was had the unfortunate luck of being classified as an airline. This stock is down BECASUE the entire economy is down.

 

[FWAAA]

The good news just keeps rolling in for Southwest:

Fitch Ratings lowered its credit rating on Southwest Airlines Co. Friday, citing concern that the low-cost carrier has too much debt after drawing $400 million from a revolving credit facility.

Fitch said Friday that by tapping the credit facility, Southwest had raised its debt to about $3 billion from $2.1 billion at the beginning of the year.

http://biz.yahoo.com/ap/081121/southwest_a...fitch.html?.v=1

Very legacy-like. Rapidly expanding debt load, lower ratings on debt.

Looks like a bumpy ride ahead. Better buckle those seatbelts.

 

[BOEING777]

Could this mean we see some WN deferals?

How many 737's does the carrier still have on order?