Airline stocks down sharply - DOJ reportedly to block AMR/LCC

[WorldTraveler]

Please tell me that you aren't going to argue that the figure on the left for US is larger than the figure on the right which is for WN.

$1,692 Wage/salary expense W2 (BTS) $3,462

And looking at 2012 data, instead of the 2011 which is the best you could find,
US' average salary was $58K compared to almost $79K for WN employees.

http://web.mit.edu/airlinedata/www/default.html

 

[Black Magic]

No promises were made to the Mechanic and Related, Fleet Service, Maintenance Trainers, or the Flight Attendants at US.

And US' labor costs are more than WN, which is a larger airline than US.

What planet are you on??? It is widely known that Southwest employees are among the highest paid in the airline industry. Can you not even read your own spreadsheet posted? Don't let your own facts get in the way!

 

[WorldTraveler]

touché

denial is not a river in Egypt.

 

[jimntx]

However, let's not make the mistake that labor costs and labor pay rates are synonymous. There is the often overlooked issue of labor productivity. If company A pays $1.00/hr more than company B in the same labor category, but Company A gets $0.50/hr more work out of its employees than company B, then Company A has lower labor costs. This is an oversimplified example, but I hope you see what I mean.

An example: AA f/as clean the plane only on through flights where the inbound leg is less than 1100 miles. WN flight attendants (who on an hourly basis are paid more than AA f/as) clean the plane at the end of every leg. WN is getting more work from its f/as for not that much more money. Plus they have the cost avoidance advantage of not having to pay someone else to do the work as AA does.

 

[WorldTraveler]

agreed but I don't know what metric could possibly be used to show that WN employees are topped by US employees other than a small subset of something - and 700 LOVES to try to make generalities out of tiny data points. Everyone else can see thru it.

 

[Kev3188]

Generalities using data points?

Yeah, that *never* happens on this board.

 

[WorldTraveler]

using data points to make the points that the data represents is the way data SHOULD be used, not to try to make a point that the data doesn't even come close to suggesting.

You really shouldn't try to defend this act... there is no credible case for arguing that US employees are better off than WN's.

Period. It's foolishness to try to prove otherwise.

 

[Kev3188]

It's a general statement...

 

[WorldTraveler]

if the statement is about WN and US employee compensation, I have no idea what part of general or specific or anything else could be right.

perhaps you can help us out since the great negotiator for US can't even read the spreadsheet which he posted.

 

[Phoenix]

agreed but I don't know what metric could possibly be used to show that WN employees are topped by US employees other than a small subset of something - and 700 LOVES to try to make generalities out of tiny data points. Everyone else can see thru it.

If you are bothering to counter 700 as if it were necessary to gain credibility...well lets just say you ain't from around here.

 

[Kev3188]

if the statement is about WN and US employee compensation, I have no idea what part of general or specific or anything else could be right.

perhaps you can help us out since the great negotiator for US can't even read the spreadsheet which he posted.

You're smart enough to recognize a rhetorical post when you see one.

 

[WorldTraveler]

If you are bothering to counter 700 as if it were necessary to gain credibility...well lets just say you ain't from around here.

it's precisely because he jumps it to try to destroy someone else's credibility while doing it to himself that is comical.

You're smart enough....

thanks and you are as well....

 

[LD3]

I was surprised to see the difference in block hours btwn US & SW, I take it this would be due to hub vs P2P?

 

[FWAAA]

I was surprised to see the difference in block hours btwn US & SW, I take it this would be due to hub vs P2P?

That probably plays a part. Another factor that helps boost the block hours at Southwest compared to the others is that its pilots don't stop flying the line every so often so they can train on a new fleet type. At most legacies, the myriad fleet types contributes to lower average monthly block hours. Just one of the financial benefits to a fleet made up of 737s.

 

[WorldTraveler]

Meanwhile, airlines had another nasty day as fears of US military intervention grow based on evidence of chemical weapons usage on civilians, also driving up fuel prices.

UA lead the pack down losing 7%, AS and DL under 6^, LCC at 4 1/2% and LUV down 3 1/2%.

Military action has dramatically impacted the airline industry in the past and could put an end to a strong summer season for the industry.