BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
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- Banned
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But Kelleher discounted fears voiced by David N. Siegel, president and chief executive officer of US Airways, that Southwest posed a major threat to that airline's future.
"He's trying to win concessions from his employees," Kelleher said of Siegel.
Siegel had said in a video conference with employees a day earlier that US Airways' survival was at risk without major concessions from labor groups.
"Herb Kelleher wants your job," Siegel said. He said matching Southwest on fares would require severe cost-cutting that would mean labor groups could face pay cuts as high as 25 percent.
US Airways has lost when it has gone head-to-head with Southwest in Baltimore and on the West Coast, Siegel said, predicting that if his airline couldn't hold its position of strength in Philadelphia, "they're going to kill us."
"Baltimore is not Philadelphia," Kelleher said. "Baltimore was never the size of Philadelphia for US Airways."
"We will have 28 flights as of July 6. US Airways must have, what, 400 a day?" Kelleher said. "This is not the Viking killer ship coming in."
Full Article
Jim
"He's trying to win concessions from his employees," Kelleher said of Siegel.
Siegel had said in a video conference with employees a day earlier that US Airways' survival was at risk without major concessions from labor groups.
"Herb Kelleher wants your job," Siegel said. He said matching Southwest on fares would require severe cost-cutting that would mean labor groups could face pay cuts as high as 25 percent.
US Airways has lost when it has gone head-to-head with Southwest in Baltimore and on the West Coast, Siegel said, predicting that if his airline couldn't hold its position of strength in Philadelphia, "they're going to kill us."
"Baltimore is not Philadelphia," Kelleher said. "Baltimore was never the size of Philadelphia for US Airways."
"We will have 28 flights as of July 6. US Airways must have, what, 400 a day?" Kelleher said. "This is not the Viking killer ship coming in."
Full Article
Jim