Skip to main content

Southwest Airlines Community

Lawsuit filed

LawsuitforSW
Active Member
22 REPLIES 22

Re: Lawsuit filed

floridaguy
Active Member

So now we have both a class action suit and actual shareholders are suing.  The net sum of this will likely place the organization into an unstable financial situation.

 

This is the price you pay for letting your system be sloppy and compromise people's Holiday travel.  This was a DISASTER.

Re: Lawsuit filed

TheMiddleSeat
Top Contributor

@floridaguy lol

 

--TheMiddleSeat

Re: Lawsuit filed

dfwskier
Top Contributor

@floridaguy wrote:

So now we have both a class action suit and actual shareholders are suing.  The net sum of this will likely place the organization into an unstable financial situation.

 

At the end of the last quarter SW was sitting  on over  $13.5 BILLION in cash and had earned over a billion dollars YTD. There is no unstable financial situation

 

Further, stock price is about where it was before the meltdown happened.  So it  seems the market disagrees with you.

 

 

A financial expert you ain't 

Re: Lawsuit filed

floridaguy
Active Member

No, not at all.  With two MBAs, one in finance and the other in health services administration, what would I ever know.

 

 

Re: Lawsuit filed

dfwskier
Top Contributor

@floridaguy wrote:

No, not at all.  With two MBAs, one in finance and the other in health services administration, what would I ever know.

 

 


Absolutely nothing, apparently.

Re: Lawsuit filed

TheMiddleSeat
Top Contributor

@floridaguy all that and still no one takes you seriously. 

 

It's interesting that actual smart and well respected people never have to scream about their "credentials".

 

--TheMiddleSeat

Re: Lawsuit filed

floridaguy
Active Member

Southwest having $13.5 billion of cash on reserve is all relative.  If their total revenues are about $16 billion, then that is like someone who earns $200k per year having a savings account of $169k in their checking and savings accounts combined.  Considering that most people in that income level have vastly more than that saved, in relative terms, Southwest's balance sheet is weak.

 

Their income is like the person earning $200k annually is able to save, after taxes, $12,000.  Not exactly a windfall by any stretch.

 

It is all relative.  Talking billions means nothing until you compare it to their income, balance sheet and other obligations.

 

Their liabilities are also about double their annual earnings.  So, the same as someone earning $200k per year and has total outstanding debt of $400k.

Re: Lawsuit filed

dfwskier
Top Contributor

@floridaguy wrote:

Southwest having $13.5 billion of cash on reserve is all relative.  If their total revenues are about $16 billion, then that is like someone who earns $200k per year having a savings account of $169k in their checking and savings accounts combined.  Considering that most people in that income level have vastly more than that saved, in relative terms, Southwest's balance sheet is weak.

 

Their income is like the person earning $200k annually is able to save, after taxes, $12,000.  Not exactly a windfall by any stretch.

 

It is all relative.  Talking billions means nothing until you compare it to their income, balance sheet and other obligations.

 

Their liabilities are also about double their annual earnings.  So, the same as someone earning $200k per year and has total outstanding debt of $400k.


So tell us, which US based airlines have been more profitable than SW?

 

Do any of them have more FCF?

 

 

 

I eagerly await your reposne.

Re: Lawsuit filed

floridaguy
Active Member

Not really the point.  The point is the $13.5 billion isn't really that big of a deal when you scale everything.

 

However, I appreciate the distraction.