HELP SAVE A COMPANY

[PlayTheOdds]

Stream line all departments. This will result in a further reduction of jobs but will save a lot of money in the long run that is being spent unnecessarily. NWA has engineers for every aspect of an aircraft yet they are out sourcing all the heavy maintenance. Why does NWA need engineers for engine components when these components are not repaired by NWA? NWA has sheet metal engineers yet as far as I can see there is no sheet metal work being performed. The whole HR department here is hinged on one person. If that one person is not here the entire department is useless. Either allow the others the same responsibility or get rid of them. I still have not figured out why an overtime clerk is necessary. There is fat to be trimmed in every department, find it and eliminate it.


Though a lot of work has been accomplished at the LMO’s there is stillroom for improvement. Especially in scheduling. Tooling and equipment is another issue that needs to be addressed soon. How cost effective is it to have a broken down lift truck with two mechanics on it holding up a flight that just went into a delay status.


For the remainder of this strike remove the leads from the ramps and use direct supervisors to keep things moving or out source the ramp all together. Definitely out source the marshalling and pushbacks. This alone will reduce operating cost and improve on-time stats.


I am sure it is being done but the union contracts have got to be rewritten if not thrown out all together. If the other union contracts are anything like the old AMFA contract there is no way you can operate an efficient company.


Mixed aircraft types present huge cost inefficiencies. I am not talking about different models but different makes. Either go with Boeing or Airbus. This alone will save millions in parts inventory and training.


Interiors are another issue to consider, particularly the seats. Keep them all the same. I realize you will have different classes of seats but there is no reason for each aircraft not to have the same type of seats. For the time being having a universal cushion and cover that will work on all coach seats will save money in inventory and delays. Remove all entertainment systems and coffee makers from the aircraft. In todays world of gadgets, most people bring their own entertainment. Coffee? I have never understood that one. Let Starbucks reap the benefits. The costs for maintaining those coffeemakers are tremendous for the no-return.


My personal favorite fix the baggage handling problems and do away with carry-ons. This will reduce the boarding and de-boarding time by half if not more. This results in quicker and more efficient turn times.

 

[NewHampshire Black Bears]

".....WHEW....." 😛h34r: 😛h34r:

Something STINKS !!!!

"I SMELL a S C A B " :down: :down:


NH/BB's

 

[767jetz]

Yea If SWA did'nt have fuel hedges they would be losing money...Blah..Blah...Blah!

well Guess what, they do have fuel hedges because they were smart enough to plan ahead.

With all the SWA comments, I guess I'll start here...

I agree that WN has fuel hedges because of good leadership and the ability to plan ahead. So Kudos to them for that. But the hedges don't last forever, and they start to creep up over time. They will run out in the not-so-distant future. So what will they do then? You suggest they will do what's necessary to adjust, but what would that be specifically? How do you "adjust" to an instant doubling of the largest part of your budget?

That's the real issue. The only place you can adjust significantly is labor cost (the second biggest part of your budget) or ticket prices. In almost every industry except the airlines, energy costs are passed along to consumers. If WN raises prices accordingly, and others match that increaase, then the problem is solved. If not the problem continues.

While I agree that WN has had better management than most to some degree, let's not forget that the business model has just as much to do with it as day to day management. The business model works because it stays within a niche that allows point-to-point service, often to secondary airports (ie: Midway, Islip, etc.), one common fleet, no interline bags, no catering, no inflight entertainment, no first class, no business class, etc. etc. etc. But hey, it works for them so you can't knock it from a business perspective.

On the other hand, WN can not be all things to all people. Neither can NW, AA, UA, B6, or anyone for that matter. The low cost model doesn't work for hub and spoke, full service airlines with a large international route system. Just like the full service model doesn't work for short haul direct flights (ie: Independence Air).

Airlines like NW might try to provide a small percentage of their hub flying at a Southwest prices and Southwest level of service in order to compete in some markets and protect market share to feed the rest of the system. They may even do so at a slight loss inorder to make it up on the longer haul, upscale markets they dominate.

The problem for NW is that the road they took over the last 4 years was to sit and wait for the industry to turn around or a competitor to fail. By keeping prices low and spoiling many attempts by the rest of the industry to raise prices, they were playing a dangerous game of chicken that didn't pay off. With UA emerging from BK and being the biggest competitor for NW on their only crown jewel, the Pacific routes, things can only get worse for NW.

NW is now in a precarious cash position. While keeping some amount of labor peace and satisfaction is the only long term solution in a customer service industry, NW simply can not afford to continue to operate without draconian measures.

One option might be to sell off routes and assets, and shrink into a low cost model. By looking at the US/HP merger this is no guarantee of success. Time will tell on that one. Then maybe they can afford to minimize the damage to the remaining employees and keep what remains of the moral.

A shrink and merge scenario might be another.

In order to down size and still provide service resembling the current NW, there would be major labor confrontations, horrible work conditions, outsourcing, and low pay for most. But as previously mentioned, in a service industry there is no guarantee of success down that road either.

Whatever happens, good luck to the employees and may brighter days await you in the future.

 

[local 12 proud]

Jetz that was a very intelligent and thought out response, I completely agree with your assesment of the situation!

 

[767jetz]

Jetz that was a very intelligent and thought out response, I completely agree with your assesment of the situation!

Thanks. 🙂

But I'm curious to know what you think will happen as WNs' fuel hedges run out? Will they raise prices or take aim at labor?

IMO they will do both, but more so on the labor front. Not that I agree with that approach. I wish all airlines would start charging what it cost to do business. With taxes, security cost, fuel, maintenance, training, airport fees, etc., flying a jet from point A to point B is an expensive proposition. But WN is not immune to the realities of our economy. They just had a really good flu shot (fuel hedges).

I don't think the labor cuts will go over very well. Especially since that concept is so foreign to the employees. (as it should be.)

Their solution will have an effect on everyone, especially airlines like NW who are restructuring and need every dollar they can get from a ticket.

 

[local 12 proud]

Thanks. 🙂

But I'm curious to know what you think will happen as WNs' fuel hedges run out? Will they raise prices or take aim at labor?

IMO they will do both, but more so on the labor front. Not that I agree with that approach. I wish all airlines would start charging what it cost to do business. With taxes, security cost, fuel, maintenance, training, airport fees, etc., flying a jet from point A to point B is an expensive proposition. But WN is not immune to the realities of our economy. They just had a really good flu shot (fuel hedges).

I don't think the labor cuts will go over very well. Especially since that concept is so foreign to the employees. (as it should be.)

Their solution will have an effect on everyone, especially airlines like NW who are restructuring and need every dollar they can get from a ticket.

Jetz
That is a good question, the cost of fuel will eventually have to be passed on to the customer. the Airlines can't continue to operate in the Red Indefinately. all the other cost you mentioned will need to be passed on as well.

I suspect WN would move to its Labor groups but only as a last resort and only after all other measures were tried and failed. Soutwest pride's itself in having a "Family" atmosphere and sharing its success accordingly. If the time comes for concessions I believe it would come from the Top/Down.

No one likes to lower their standard of living, But if WN finds itself needing to visit the prospect of concessions the Employees will step up in order to keep LUV profitable. will they like it? of course not, but they realize the gravity of the situation and only need to look at the rest of the Industry.

However southwest has been profitable since its inception, and most of all they have a Leadership with Vision and true respect and gratitude for ALL its employees.

 

[robbedagain]

Stream line all departments. This will result in a further reduction of jobs but will save a lot of money in the long run that is being spent unnecessarily. NWA has engineers for every aspect of an aircraft yet they are out sourcing all the heavy maintenance. Why does NWA need engineers for engine components when these components are not repaired by NWA? NWA has sheet metal engineers yet as far as I can see there is no sheet metal work being performed. The whole HR department here is hinged on one person. If that one person is not here the entire department is useless. Either allow the others the same responsibility or get rid of them. I still have not figured out why an overtime clerk is necessary. There is fat to be trimmed in every department, find it and eliminate it.
Though a lot of work has been accomplished at the LMO’s there is stillroom for improvement. Especially in scheduling. Tooling and equipment is another issue that needs to be addressed soon. How cost effective is it to have a broken down lift truck with two mechanics on it holding up a flight that just went into a delay status.
For the remainder of this strike remove the leads from the ramps and use direct supervisors to keep things moving or out source the ramp all together. Definitely out source the marshalling and pushbacks. This alone will reduce operating cost and improve on-time stats.
I am sure it is being done but the union contracts have got to be rewritten if not thrown out all together. If the other union contracts are anything like the old AMFA contract there is no way you can operate an efficient company.
Mixed aircraft types present huge cost inefficiencies. I am not talking about different models but different makes. Either go with Boeing or Airbus. This alone will save millions in parts inventory and training.
Interiors are another issue to consider, particularly the seats. Keep them all the same. I realize you will have different classes of seats but there is no reason for each aircraft not to have the same type of seats. For the time being having a universal cushion and cover that will work on all coach seats will save money in inventory and delays. Remove all entertainment systems and coffee makers from the aircraft. In todays world of gadgets, most people bring their own entertainment. Coffee? I have never understood that one. Let Starbucks reap the benefits. The costs for maintaining those coffeemakers are tremendous for the no-return.
My personal favorite fix the baggage handling problems and do away with carry-ons. This will reduce the boarding and de-boarding time by half if not more. This results in quicker and more efficient turn times.

OUTSOURCE SCABS! As for carry-ons, forget it because everyone will be carrying a carryon. the baggage handling isnt the problem. every aspect of the plane's maintaince should have an engineer in case someone is in need of a part or whatever the problem may be.

 

[AP Tech]

Hey PTO....its called "Quality Assurance", obviously something you have no clue about. When the MRO's find a problem is usually goes through NWA engineering for the proper fix and so it can be documented. One hand must know what the other is doing.....otherwise you have problems. Remember the JT8 which was overhauled in Turkey several years back? It came apart on the ground and they found a turbine blade which was previously cracked and sprayed over......

 

[Kev3188]

For the remainder of this strike remove the leads from the ramps and use direct supervisors to keep things moving or out source the ramp all together. Definitely out source the marshalling and pushbacks. This alone will reduce operating cost and improve on-time stats....


...I am sure it is being done but the union contracts have got to be rewritten if not thrown out all together. If the other union contracts are anything like the old AMFA contract there is no way you can operate an efficient company.

So remove the ramp leads for the remainder of an AMT strike? Okay, if you say so (hell, I could use the time off). 🙄

As for the CBA's. Educate yourself before you comment on them. Believe it or not, there are huge efficiencies in the ESSC & COPFS contracts; the company has chosen to ignore them.

 

[robbedagain]

I cant even picture conehead trying to start a piece of ground equipment let alone crawling into the cargo bin of a plane! 😀

 

[PlayTheOdds]

These moves are required to show the rank and file that it is not more of the same and that any sacrifices we ask will be well thought out. In order for the company to succeed the current culture of conflict needs to be replaced with one of cooperation.

Reducing the rift between management and labor is indeed an important matter. This has been done between management and the AMT's. The returning AMFA Guys have commented many times that management has never been this receptive towards them. From what I can tell they very much like their new environment. As far as the other work groups are concerned there is a lot of work to be done in that area.

Personally I would like to see all the unions go and the company learn how to deal with its employees on an individual basis. They had the basics down at first but now that things are settling down they are turning to a regimental type system.

...every aspect of the plane's maintaince should have an engineer in case someone is in need of a part or whatever the problem may be.

If there is a bad starter does an engineer remove and replace it? Does he box it up and send it out to the repair station? If the repair station needs an NWA engineer to tell them how to repair it then NWA doesn't need the repair station.

 

[Kev3188]

Ok, Here goes. I'm the newly appointed CEO here are some Day one initiatives.

1. Company wide web cast. Introduce myself and tell EVERYONE that it is no longer "Business as usual at NWA" I would promise that I would never lie to them but that the cold hard facts regarding NWA's finances may make you wish I had.

You'd already have my vote.

All Senior and mid level executive will be given "Focus Accounts" 5 accounts per manager. Their task is to contact these key customers once per quarter to ensure customer satisfaction. A focus account can be a travel agency or a very high yield FF'er.

This worked wonders for CO during their turnaround.

Gain agreement to seek ONE health care plan for everyone. Executives included. The company should be able to get a better deal for the same or less money and lower administration costs at the same time.

This may already be happening??? I know with the IAM offer, all employees will be on one plan (a PPO), instead of being able to choose one of three available now.

Offer an early out to all top of scale workers in all disciplines regardless of age.

Why hasn't this happened yet?! Yeah, I know the answer: "it costs money." What's it costing to not implement it?

Conduct a functional analysis of every non union job in NWA. Those who don't add enough value will be laid off with an appropriate severance.

Excellent. Those that thrive in a meritocracy will thrive, and the dead weight goes buh-bye.

 

[NewHampshire Black Bears]

Reducing the rift between management and labor is indeed an important matter. This has been done between management and the AMT's. The returning AMFA Guys have commented many times that management has never been this receptive towards them. From what I can tell they very much like their new environment. As far as the other work groups are concerned there is a lot of work to be done in that area.

Personally I would like to see all the unions go and the company learn how to deal with its employees on an individual basis. They had the basics down at first but now that things are settling down they are turning to a regimental type system.
If there is a bad starter does an engineer remove and replace it? Does he box it up and send it out to the repair station? If the repair station needs an NWA engineer to tell them how to repair it then NWA doesn't need the repair station.

==========================================================

"WHEW" 😛h34r: 😛h34r: 😛h34r:

What's that ODOR" ??

"I SMELL a ROTTON S C A B" :down: :down: :down:

NH/BB's

 

[robbedagain]

I do to NHBB! Of course that scum bym scum bag scab would love to see the unions go. But tough luck on that PTO cause that aint gonna happen. especially while there are crooked a**holes like Steeland and Conehead running NWA right into the cemetery. I cannot wait until the day of reckoning occurs and NWA is taking your "scab hard earned" money and pocketing it for themselves while you suffer the loss of that money

 

[PhxMama]

Ok, Here goes. I'm the newly appointed CEO here are some Day one initiatives.

1. Company wide web cast. Introduce myself and tell EVERYONE that it is no longer "Business as usual at NWA" I would promise that I would never lie to them but that the cold hard facts regarding NWA's finances may make you wish I had.

2. Effective immediately:

No reserved parking spaces for ANYONE including me.

All executives & managers fly in coach with the bulk of their customers.

Executives and janitors have the same pass privelidges for personal & Family travel. NO EXCEPTIONS. We have seats in First Class, they're for sale or for people who spend money with NWA and earn them.

....

Bob, I know you trvl mainly with US and are a great supporter of the airline. Many of these ideas should be handed to US management. As you know with HP and US merger, morale is sinking. To see any uppermangment handle an irate pax makes me chuckle, never mind throw a bag!

**Moderator Note: Please refrain from quoting a lengthy post. It just makes it easier for everyone to read follow-on posts. Thank you.**