Gary Kelly - CEO Southwest Airlines

[pilot]

Direct quote from a man who understands the most valuable asset of his corporation. As seen in the latest issue of the Southwest inflight magazine:

"Southwest has remained profitable during all this time becuase we had low costs to support what customers wanted in low fares. But we also have the best pay rates for our employees. We don't get our low cost by paying poor wages to our employees, and I'm very proud of that."

Geeeeeeeeeez

I wonder if anyone other than these guys get it?

pilot

 

[JAXPax]

If Some in Sr. Management would take their eyes off the stock price and their personal gain and actually run the company things would change.

Yeah, stock price drops and they lose their own jobs. You don't want to make investors doubt you, especially in a sector as volatile as the present airline industry.

 

[Dorf]

Yeah, stock price drops and they lose their own jobs. You don't want to make investors doubt you, especially in a sector as volatile as the present airline industry.

Yes, while they may lose this job, they float gently on their Golden Parachute to their next job and fleece the customers and employees of that job, and the cycle goes on, and on, and on ad naseum.

 

[Hope777]

WOW !!! A Company that knows what it's GREATEST ASSET is...........

 

[JAXPax]

Yes, while they may lose this job, they float gently on their Golden Parachute to their next job and fleece the customers and employees of that job, and the cycle goes on, and on, and on ad naseum.

Without investors believing in the management team's plans and getting some sort of return, many more at US would likely be out of a job.

The CEO of my company (that is under great financial difficulty) is working for free right now.... the top executive team was "laid off" and is now working on their own accord. We thought that was great.... until we realized they felt everybody should share the same attitude. Myself and the supervisors under me have had our pay frozen, cut, and the responsibilities of furloughed management members thrust upon us. We have hourly employees now making much more than their supervisors. Then you have a revolving door of supervisor positions, get people who really don't care in the positions, and that trickles down to poor treatment of employees and generally poor morale. It's all a cycle.

 

[PITbull]

I have never heard one LUV employee ever speak anything negative of their management. Their management is "exceptional" in this industry, and all the employees deserve their earned success.

 

[SKY HIGH]

I have never heard one LUV employee ever speak anything negative of their management. Their management is "exceptional" in this industry, and all the employees deserve their earned success.

sky high states: Pitbull, I'm surprised at your response.

LINK:http://www.airliners.net/discussions/general_aviation/print.main?id=1506912

Southwest flight attendants say talks near impasse
Wednesday April 7, 10:28 pm ET

DALLAS, April 7 - Talks between Southwest Airlines (NYSE:LUV - News) and the union that represents attendants at the company may have reaced an impasse, a union letter sent to the low-fare carrier's chief executive said.

The Transport Workers Union Local 556 sent a letter on Wednesday to Jim Parker, saying the union was willing to return to the bargaining table to discuss a new contract, but the airline appeared to have given up on negotiations.

The airline and the union -- the only major labor group at the airline that has not reached a new contract -- have been in talks for almost two years on a new deal. Federal mediators have also been called in to help with the talks.


LINK: http://www.theairlinenews.com/Archive/a20040302.html

News for Tuesday, March 02, 2004

@..."Is there any other work force that goes to work five days a week and is only paid 3-1/2 days?" That was the question being asked by Southwest flight attendant Cuyler Thompson as she picketed the airline recently outside Baltimore-Washington International Airport. As we've reported, Southwest is getting increasing resistance from its attendants, who have been in contract negotiations for two years and say are being forced to work unpaid hours while the carrier racks up steady profits.

remember???????????

 

[PITbull]

Sky,

Thanks for the clarification and article. I was unaware of the impasse as I have not been keeping up with recent industry union negotiations, nor have I been on their forum. Should have visited over there, as I do NW and DL.

Employees I have spoken with were those at the Pittsburgh and PHL airport and that was last year.

 

[UWCactus]

This has always been a sore subject with me when people compare Southwest Airlines with other airlines. There is no comparison in operational costs, plain and simple. Luckily when Southwest began service well over 20 years ago, they had a plan and stuck with that plan for the most part. They still only operate once a/c type (low cost), parts for 737 only (low cost), Pilots that can fly any of the equipement during weather, irregular operations, etc. allowing for more efficient rescheduling (low cost). No adavance seat assignments yet (low cost), no interlining of baggage (low cost), no meal service (low cost) no first class cabin(low cost). All of this results in the ability to pay top notch wages (hats off to them). To give their management a lot of credit...they do value their employees...but good wages don't always result in reciprocated feelings toward managment.

Don't sell US Airways short and DO NOT COMPARE today's management team with US Air management in the past.

The same people that write on this board and gripe about basic service changes at the New US Airways...are the sample people that #### about the snack basket and any other cost saving measures US Airways tries to make.

 

[legacy-to-LCC]

This has always been a sore subject with me when people compare Southwest Airlines with other airlines. There is no comparison in operational costs, plain and simple. Luckily when Southwest began service well over 20 years ago, they had a plan and stuck with that plan for the most part. They still only operate once a/c type (low cost), parts for 737 only (low cost), Pilots that can fly any of the equipement during weather, irregular operations, etc. allowing for more efficient rescheduling (low cost). No adavance seat assignments yet (low cost), no interlining of baggage (low cost), no meal service (low cost) no first class cabin(low cost). All of this results in the ability to pay top notch wages (hats off to them). To give their management a lot of credit...they do value their employees...but good wages don't always result in reciprocated feelings toward managment.

Don't sell US Airways short and DO NOT COMPARE today's management team with US Air management in the past.

The same people that write on this board and gripe about basic service changes at the New US Airways...are the sample people that #### about the snack basket and any other cost saving measures US Airways tries to make.

how about the management team at continental? they are profitable, yet manage to not screw the customer with dillutional "innovations"! that is REAL innovation!!! you choose to believe that profitability will only come in the form of service sacrifices...(mmmm, that koolaid is good, isn't it?) the reality of the situation is: you can be full service (to y and f) and still be profitable! so, i say "hats off" to cal's management--a truly innovative, forward looking management team!!! if doogie and kirby really cared about the customers, they would distance themselves from the swa business model with more than just comparative hollow platitudes...
incidently, the people who complain about the snack basket are the same people who make your job a reality...would you like another sip of this koolaid?

 

[UWCactus]

how about the management team at continental? they are profitable, yet manage to not screw the customer with dillutional "innovations"! that is REAL innovation!!! you choose to believe that profitability will only come in the form of service sacrifices...(mmmm, that koolaid is good, isn't it?) the reality of the situation is: you can be full service (to y and f) and still be profitable! so, i say "hats off" to cal's management--a truly innovative, forward looking management team!!! if doogie and kirby really cared about the customers, they would distance themselves from the swa business model with more than just comparative hollow platitudes...
incidently, the people who complain about the snack basket are the same people who make your job a reality...would you like another sip of this koolaid?

You might need to re-read what I wrote. This was not about taking from customers. This was about a business model and low costs as they are associated with wages.

CAL is a great airline no doubt. But don't forget...US Airways is also profitable. And no i don't drink the Kool Aid...but I'm a sensible adult that is involved in many aspects of this business and have a very very well rounded view of this company. I tend to the see the "big picture" more often than not.

 

[ilg30/7]

You might need to re-read what I wrote. This was not about taking from customers. This was about a business model and low costs as they are associated with wages.

CAL is a great airline no doubt. But don't forget...US Airways is also profitable. And no i don't drink the Kool Aid...but I'm a sensible adult that is involved in many aspects of this business and have a very very well rounded view of this company. I tend to the see the "big picture" more often than not.

Excellent post.

The thread was started about what a terrific place to work Southwest was. But it always amzes me how those that scream for USAirways to emulate their business plan do not realize that doing that exact thing would in no way be in their best interest - from the employees who would be let go to the frequent fliers that would see their perks disappear.

 

[Prince of PAWOBs]

Yes, while they may lose this job, they float gently on their Golden Parachute to their next job and fleece the customers and employees of that job, and the cycle goes on, and on, and on ad naseum.

Exactly right! It's an executive fraternity that self-propogates.

Excellent post.

The thread was started about what a terrific place to work Southwest was. But it always amzes me how those that scream for USAirways to emulate their business plan do not realize that doing that exact thing would in no way be in their best interest - from the employees who would be let go to the frequent fliers that would see their perks disappear.

No, it wasn't about how WN is a terrific place to work. It was about how WN's CEO values his employees. US would do well to consider how valuable it's employees are.

 

[ClueByFour]

But it always amzes me how those that scream for USAirways to emulate their business plan do not realize that doing that exact thing would in no way be in their best interest - from the employees who would be let go to the frequent fliers that would see their perks disappear.

Well, half the company has been laid off, and the FF program has been decimated. Maybe they are trying....

 

[700UW]

The WN impasse with the FAs is old news, their new contract made them one of the highest paid in the industry, as Herb took over negotiations and closed the deal.