Wn To Close 3 Reservation Centers

[SWAFA30]

Southwest Airlines Consolidates Reservations Centers


DALLAS, Nov. 4 /PRNewswire-FirstCall/ -- Southwest Airlines (NYSE: LUV) today announced the consolidation of its nine Reservations Centers into six. The move follows a steady decline in call volume over the last few years as Customers have chosen other means for booking their Southwest Airlines travel. Employees from its Dallas, Little Rock, and Salt Lake City Centers, totaling approximately 1,900, will be allowed to relocate to one of Southwest's six other Reservations Centers. The three Centers are scheduled to close on February 28, 2004.

"This was a difficult decision, but one that assures that those Employees who choose to relocate can continue their careers with Southwest Airlines," said Jim Parker, Southwest's Vice Chairman and CEO. "Our superb Reservations Employees will be given the opportunity to transfer to one of our six remaining Reservations Centers, which are located in Albuquerque, Chicago, Houston, Oklahoma City, Phoenix, and San Antonio. Our desire is to balance operating costs and our Employee resources with the way our Customers choose to do business with us."

Acceptance of online booking has steadily increased over the past several years. The established trend means that Customer demand can no longer support nine phone-based Centers, but it does not mean that Southwest has changed its emphasis on People.

"The Employees at these three Centers have, like all of our great Reservations Employees, contributed tremendously to Southwest Airlines' well- earned reputation for Legendary Customer Service, and it is our sincere hope that these Employees will continue to deliver Southwest's personalized Customer Service at one of our six other Centers," said Colleen Barrett, Southwest's President and COO. "Our People are our greatest asset. By putting them in the right places, we can continue to have the most energetic, productive, and Customer Service focused Employees in the airline industry."

For those who do not choose to relocate, a generous support package -- including cash severance pay, flight privileges, medical coverage, and guidance with a career transition -- will be offered.

Southwest estimates the costs associated with consolidating its Reservations operation into six Centers in first quarter 2004 to range from $20 to $30 million. Thereafter, the potential annual operating costs savings may exceed that amount.

Parker stressed, "this decision underscores our commitment to low fares, low costs, and longterm job security and Profitsharing for our Employees. Southwest has posted a profit for each quarter following the tragic events of September 11, 2001, and did not furlough any Employees. Although the travel business has changed, our desire to bring the Freedom to Fly to America is greater than ever."

Southwest is now in its 32nd year of operation, serving 59 airports in 58 cities in 30 states. Based in Dallas, Southwest currently operates nearly 2,800 flights a day with a fleet of 385 Boeing 737s with an average age of nine years -- one of the youngest pure jet fleets in the domestic airline industry.

SOURCE Southwest Airlines

 

[JS]

Employees from its Dallas, Little Rock, and Salt Lake City Centers, totaling approximately 1,900, will be allowed to relocate to one of Southwest's six other Reservations Centers. The three Centers are scheduled to close on February 28, 2004.

They're closing Dallas, the same location as the headquarters? Bizarre.

 

[tadjr]

I guess it depends on the costs associated with each office. Are the senior people at these offices? I thought it was strange they would close some place like Little Rock, where you'd think the associated costs of office space, etc would be low, vs keeping a place like Chicago open.

 

[mrman]

They're closing Dallas, the same location as the headquarters? Bizarre.

Res center is actually in Grand Prarie, not at HQ

 

[sfb]

My guess is that it probably has something to do with leases expiring, availability of a buyer for a building (if owned), available space (for transfers) at centers staying open, etc.

 

[JS]

Res center is actually in Grand Prarie, not at HQ

The City of Grand Prarie actually has an office building in it? Wow, you learn something new every day.

What's next, HQ is on Amon Carter Blvd.?

 

[wnfan37]

and more adjustments coming.... field marketing is closing 29 field offices, and moving affected employees into one of 7 marketing offices that will remain.

 

[eolesen]

I suspect both LIT and DAL are pretty senior IIRC. As well paying as WN may be, and as crappy as the Dallas area real estate market is, I'd be surprised to see more than half the affected reps transferring.

That means that this will be the first layoffs at WN in a very, very long time.

 

[SWAFA30]

I suspect both LIT and DAL are pretty senior IIRC. As well paying as WN may be, and as crappy as the Dallas area real estate market is, I'd be surprised to see more than half the affected reps transferring.

That means that this will be the first layoffs at WN in a very, very long time.

If you are being given the opportunity to do the same job at the same payscale, just in a different building and you choose not do it...you have not been laid off, you quit. It may not seem that way to the folks who are affected but the truth is, a position will be made for every displaced employee if they choose to take it.

Semantics perhaps but for a company that hangs it's hat on a 'no lay-offs' policy it is a big difference.

 

[jimntx]

If you are being given the opportunity to do the same job at the same payscale, just in a different building and you choose not do it...you have not been laid off, you quit.

Well, no. If you are talking about eligibility for unemployment insurance...
If the "different" building is more than 50 miles from the current work location, you can choose to not accept the assignment and still be considered as "laid off''--i.e., lost your job through no fault of your own.

From what I read, the "shortest" transfer will be Dallas to Houston. That's 240 miles from Oak Cliff in Dallas to the IAH vicinity in Houston (I drive it at least once a month). Grand Prairie to anywhere in Houston would be at least 250 miles.

There is also the cost of living issue. I would imagine that the COL in LIT is less than some of the remaining locations. So, making the same money at the same job in Chicago vs. LIT is a pay cut. And, if you are a flight attendant, you of all people should recognize that. A f/a in HOU is going to have a much easier time financially than a f/a in BWI or MCO unless you commute.

When I started at AA in 2000, I was lucky enough to get DFW right out of training (first new hire f/as at DFW since 1991). I still don't know how my classmates who were assigned to LGA were able to make it--even sleeping 10 to an apartment.

 

[KCFlyer]

Using a cost of living calculator at datamasters.com, the cost of living in Houston, San Antonio or Oklahoma City is LOWER than it is in Little Rock.

 

[eolesen]

If you are being given the opportunity to do the same job at the same payscale, just in a different building and you choose not do it...you have not been laid off, you quit.

So, from what you are saying, employees who don't transfer won't get unemployement...

If the employees are eligible for unemployment, it's a layoff. That's not semantics, it is fact.

 

[wnbubbleboy]

They are being moved at company expense. There are positions avalible for them in other cities. If they elect NOT to move they have resigned. I have been laid off in the past. I didn't have the option to move because my position was elimated all together. That's not the case here.

 

[KCFlyer]

They are being moved at company expense.

I thought that's how I read that. If that's the case, then I would say LUV is being very generous indeed.

 

[txskygal]

I suspect both LIT and DAL are pretty senior IIRC. As well paying as WN may be, and as crappy as the Dallas area real estate market is, I'd be surprised to see more than half the affected reps transferring.

That means that this will be the first layoffs at WN in a very, very long time. That means that this will be the first layoffs at WN in a very, very long time.

Just as a point of fact, AA; these are the first "layoff's at WN! :huh: