SW: Just how do they do it?

[speedbird86]

One thing for sure is that LUV hasn''t had all the corporate terrorist that US has had over the past 14 years. US is like a revolving door for corporate mgmt. Come in, collect a few million and split.

 

[PITbull]

SW seem to have the vision to weather any storm.





http://biz.yahoo.com/djus/030321/0757000185_1.html

NEW YORK (Dow Jones)--In spite of the war in Iraq, Southwest Airlines Co. (NYSE:LUV - News) has no plans to cut service and expects to be profitable in the first quarter, said Chief Financial Officer Gary Kelly.
The fact that we're an all-domestic carrier gives us an advantage, he told CNBC Friday.

However, March's load factor will be lower than in 2002, primarily because Easter falls in April this year instead of March.

The company has seen a little softness in the books this week, Kelly added.

The air carrier has lot of cash on hand and is 100% hedged against increased fuel prices, he said.

 

[SalesGuyCCY]

Actually, one significant difference is the Southwests labor costs are still significantly lower than U, even post-Chapter. U will about at 10.2 cent/mile and SW is somewhere around 6 cents. That''s part of it. Having just one fleet type helps too. No big hubs with big costs either and no first class and the amenities that go with it.

 

[PITbull]

Their Flight attendants are paid $47.77 top out hrly rate, and their average duty day is 10:30, as opposed to our 14:00.

And they have no ATSB guarantee coming or furloughs. No "earth shattering" concessionary sacrifices as their "survival" plan. And,they are the 6th largest carrier.

They have had to face the same obsticles with 9/11, soft economy, high fuel prices, competition, added security costs, and labor costs, as U, UA, AA, DL, NW, CO.

So how do they do this? No union busting conspiracy here.

 

[PITbull]

SalesGuy,

Are you saying that SW labor costs are lower? Give examples.

I showed you the f/as rate without putting out our lengthy contract and theirs; but I can do that.

Our f/a costs at U are much lower than SW. That is not disputable. I don't have the comparisons for the other labor groups, so, can you give an example of what you speak.

 

[KCFlyer]

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On 3/25/2003 7:55:48 PM ual06 wrote:

SW caters to a certain group of passengers going between certain places. They tell everyone else, "Tough Luck".

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Yes, they are called "business passengers" and "value conscious travellers". The ones they tell "tough luck" to are the ones who want to be "elite". Much as many elites might not like to hear it, "giving" away all the perks costs the big boy''s dearly. Especially when those "elites" are also demanding SWA style fares.

 

[ual06]

SW caters to a certain group of passengers going between certain places. They tell everyone else, "Tough Luck".

 

[ual06]

KCFlyer, you are close. SW also says "Tough Luck" to those wanting to go to Europe, Asia, South Pacific, and also to places like Denver. They run only in a niche market.

 

[mga707]

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On 3/25/2003 8:22:39 PM ual06 wrote:

KCFlyer, you are close. SW also says "Tough Luck" to those wanting to go to Europe, Asia, South Pacific, and also to places like Denver. They run only in a niche market.

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The ol'' "niche market" reasoning was valid when WN didn''t fly outside of Texas, or when they didn''t go east of MDW/MSY, or even when they didn''t serve the northeast or northwest corners of the US.
But with about 50 million RPMs per year, and coast to coast, border to border service, it''s getting to be a mighty big "niche".

 

[supercruiser]

>>Actually, one significant difference is the Southwests labor costs are still significantly lower than U, even post-Chapter. U will about at 10.2 cent/mile and SW is somewhere around 6 cents

 

[cat 111]

Too bad usair never had a ceo like Herb !!!! One who RESPECTS IT''S EMPLOYEE''S.

 

[PITbull]

Supercruiser,

Glad to see you, where have you been?

You hit it right on. I was waiting for someone to bring that forward, other than me. Your contention is the main purpose of this post.

 

[DFWFSC]

Having the most productive workforce in the airline business doesn''t hurt either. It''s not uncommon for a SWA agent or ramper to work 14-15 flights in a 8hr shift on one gate.

 

[PITbull]

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On 3/25/2003 948 PM DFWFSC wrote:


Having the most productive workforce in the airline business doesn't hurt either. It's not uncommon for a SWA agent or ramper to work 14-15 flights in a 8hr shift on one gate.

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They are productive, because the mangement is very fair with their work force, and they have a true "labor friendly" philosophy. They have acheived great balance between labor and mangement and share a mutual respect that was fostered by "good faith" bargaining and trust in their mangements word.

That's why the employees LOVE their Company.

Bob,

The winter concessions addressed the productivity issues that this mangement didn't get this summer. They waited to see us try and buy our way out with our wages to reach that "bogy" number each group had to get to. Management told us they didn't care what we gave up, wages...work rules... as long as we got to that number. So, we tried to buy our way out. We made every effort to perserve the flexibility work rules and give wages instead. Once management saw that we gave up our wages until we "bled", they let us breathe for 3 months, and went after all the labor groups work rules. Crafty, don't you think. And they didn't give the labor groups credit for the additional Medical increases again in the second concessions. We're not finished yet. More layoff in the horizon with the war contingency.

By throwing folks out on the street; you accomplish "more with less".

 

[mga707]

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On 3/25/2003 908 PM cat 111 wrote:

Too bad usair never had a ceo like Herb !!!! One who RESPECTS IT''S EMPLOYEE''S.

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Well, part of US did (Mr. Davis)...

(Wonder how Herb likes being referred to as "it?)