http://www.nytimes.com/2004/10/08/business/08benefits.html
as if times were not troubled enough in the airline industry, employees at US Airways, Delta and United are facing the stark realization that the security they hoped their jobs would provide is being quickly taken away.
American has no plans to mimic the benefit reductions being applied by its competitors. But, Mr. Wagner said, "Obviously, we have to watch what happens in the industry."
That is also the case at Southwest, the sixth-largest carrier and the largest among the low-fare airlines. Its chief executive, Gary C. Kelly, said this week that the airline, which has remained profitable despite its competitors' troubles, could afford its labor contracts and employee benefits as long as costs remained low and productivity high.
"We've never tried to live off low wages and poor benefits," Mr. Kelly said. "That's not what Southwest is about."
But he added, "If, after those airlines get through the bankruptcy process and make their changes, and we find ourselves higher with our cost structure, then yes, we have to look at that and see what adjustments we have to make."
as if times were not troubled enough in the airline industry, employees at US Airways, Delta and United are facing the stark realization that the security they hoped their jobs would provide is being quickly taken away.
American has no plans to mimic the benefit reductions being applied by its competitors. But, Mr. Wagner said, "Obviously, we have to watch what happens in the industry."
That is also the case at Southwest, the sixth-largest carrier and the largest among the low-fare airlines. Its chief executive, Gary C. Kelly, said this week that the airline, which has remained profitable despite its competitors' troubles, could afford its labor contracts and employee benefits as long as costs remained low and productivity high.
"We've never tried to live off low wages and poor benefits," Mr. Kelly said. "That's not what Southwest is about."
But he added, "If, after those airlines get through the bankruptcy process and make their changes, and we find ourselves higher with our cost structure, then yes, we have to look at that and see what adjustments we have to make."
