Southwest Airlines Sees Unit Costs Flat For Year

[WNrforlife]

:huh:
If Gary has already determined that costs will remain flat for the year, I guess that means that they have no intention of raising F/A salaries.

 

[WNrforlife]

Sorry - forgot the link

http://biz.yahoo.com/rc/040512/airlines_southwest_1.html

 

[FWAAA]

:huh:
If Gary has already determined that costs will remain flat for the year, I guess that means that they have no intention of raising F/A salaries.

With so many other FAs taking pay cuts, I'd applaud WN if they told the FAs to pound sand.

Be that as it may, did you overlook this quote from the very short article you linked?

Kelly said he expects Southwest to achieve its goal of keeping costs steady with 2003 levels, despite an estimated rise in wages and airport usage fees this year.

Sounds like he's already planning to pay employees more money.

 

[WNrforlife]

Fair enough. Still, it sounds like they have already made up their mind as to how much they are going to give.

 

[LaBradford22]

FWAAA - even if the FAs do not get a raise, 1) all other labor groups are getting a fairly substantial contractual increase (pilots are getting >10%!), and 2) all labor groups (FAs included) will become more senior this year, meaning the overall average rate WN pays each of its labor groups will go up even without any contractual increases.

WNforlife - little known fact: if WN believes it is "reasonably likely" that they will have to pay their FAs more and that this pay increase will be retroactive, WN must start accruing for that expected increase today. So, buried in WN's labor cost somewhere is an accrual for an expected pay increase for the FAs. Of course, how much that "expected" increase might be is a secret that I'm sure WN management would like to remain pretty well-kept.