SWA MASTER PLAN

[gizmo_sc]

This whole buyout started years ago between WN and FL. I guess there were lots of secret meetings for the CEO's to discuss what was going down. As I have understood it was the gate's in ATL that finally got the who buyout moving. GK wanted into ATL. I am sure that GK and his upper management folks had meeting after meeting to plan on how to do this. Since it was first announced there were lots of questions oh how WN would operate FL. Well here we are many months past the signing of that check to buy FL. All along WN and GK has had a MASTER PLAN on how to do it all. Does anyone have any insight into this. First it was the pilots, then the FA's got their seniority intergration going. Ramp / Ops just finished arbritation and waiting on the decision about 1 June 2012. We knew all this had to be done. But what is the MASTER PLAN. How is WN going to move FL into the WN business plan. Let me hear you ideas.

 

[eolesen]

Point of order... seems like years, but it has only been 18 months since the deal was announced, and not even a year since the deal was approved by the Feds.


September 27, 2010: Merger announced
April 27, 2011: DOJ approval
May 2, 2011: Deal closes

March 1, 2012: SOC issued

 

[buscador]

Along with the master plan, I would like to understand some of the Big Numbers. 3 questions

1-How does SWA re-coup the initial investment, many financial gurus estimated SWA paid 500$ million to much for AT, and then add ontop of that the raises and bennies for the 7k plus employees.

2-200$ million a year was the last years estimated revenue generated by AT for ancillary fees that SWA says they wont charge when its all said and done, how do they regenerate that loss?

3-What is the overall value of taking over a competing company, has anyone heard a number or estimate or what kind of impact on the Domestic market this deal has made?

These questions are for the bean counters and number crunchers, SWA has accountants to check on the accountants who check on the accountants, it would be interesting to understand some of the Big Numbers in laymans terms. I heard that the ATA loan deal SWA entered into got recouped in 12-14 months, how long will this one take or is it even possible?
Oops I guess that s 4 questions

 

[does this plane go to paris]

gizmo,

In the grand scheme of things, mergers don't happen overnight. United/Continental happened before the Southwest/AirTran. The planes are painted over there, but the work groups are still hashing things out. USAirways/America West happened how many years ago? and a PHX based employee has yet to begun to fly an old east route and vice versa. I know that AirTran planes are beginning to be painted in WN colors and will be outfitted with the new seats.

It probably looks frustrating, because of the reservations systems. I've always believed that pre-9/11, WN hung on by the seat of their pants using the most basic reservations system, because 1. they could and 2. they made a ton of money. I'm sure that WN had some idea of what they needed, but had other things on their plate. Now that they've signed the deal with Amadeus, things are going to fall quicker into place. GK has publicly stated that Hawaii in their sights and then Near International cities. He's already looking at HOU to be the gateway and if the city of Houston turns him down, then there are a host of other cities that will be drooling at the thought of getting 25 International cities into their city. Last year he even mentioned that WN could be flying to Europe with 5-7 years.

IIRC, AirTran's CEO, Joe Leonard said back in 2007 or 2008 that he was willing talk merger. They were not in BK and needing a way out and neither was WN, but I think that both saw the hand writing on the wall as other carriers were needing to work out deals. I would not be surprised if the next 2 airlines to begin talks with someone are Alaska and jetBlue.

You are correct in the aspect that ATL was the prize. They gained entry into a very large empty spot they had in their system. Also with the purchase of AirTran, another competitor is folded into the system.

There are going to bumps and mis-step, but so far, things are going pretty well. This year's Q1 numbers were pretty good, consider that you can now compare apples to apples