Swa scope ?

[CLARKGRSWOLD]

Was this not in your scope protection ? I guess it's kinda like outsourcing.... Can't tell me that the SWA BOYS are happy about this.... I find it sorta funny, actually


Finance SearchThu, Oct 28, 2010, 1:57PM EDT - U.S. Markets close in 2 hrs 3 mins

Southwest Airlines to Offer International Service to Five Mexico Cities With Launch of Volaris Partnership
Carrier Introduces New International Connect Product



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Companies:Southwest Airlines Co.
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LUV 13.70 -0.07

Press Release Source: Southwest Airlines On Thursday October 28, 2010, 1:30 pm
DALLAS, Oct. 28 /PRNewswire-FirstCall/ -- Southwest Airlines is excited to launch a new product that allows Customers to book international flights by connecting with Volaris, Mexico's second-largest airline. Starting Nov. 12, Customers can book service from 20 Southwest cities to five Volaris Mexican destinations (Cancun, Guadalajara, Morelia, Toluca/Mexico City, and Zacatecas), for travel starting Dec. 1. The new service will connect through Los Angeles International Airport, Oakland International Airport, and San Jose International Airport and will create up to 85 additional flight itineraries. For a complete list of possible routes, click here: http://swamedia.com/presskits/connecting-to-mexico-with-volaris

As Volaris grows, additional Southwest cities will open international destinations, continuing Southwest's commitment to network expansion. To learn more about the carrier's international connect product, check out Southwest's blog at www.blogsouthwest.com.

"In 2008, we announced our intent to offer Customers international service by utilizing a partnership with Volaris. Today, we are proud to introduce our one-of-a-kind connecting product that will foster Southwest's growth by providing Customers the ability to book international destinations to Volaris' expanded network," said Bob Jordan, Executive Vice President of Strategy and Planning for Southwest Airlines. "This is an important day for Southwest and Volaris Employees; we have worked diligently to create a unique product that will uphold our high levels of Customer Service, stimulate additional revenue for both carriers, and offer great new destinations for both airlines' Customers."

The connecting service will provide Southwest and Volaris Customers a convenient transaction and travel experience. Southwest's international connect portal will conduct two separate transactions, one with Southwest's reservations system and one with Volaris' reservations system. The newly developed technology will connect the two transactions and provide Customers with an easy booking experience and one low fare. Customers traveling on an international connection will be required to check in with each carrier, but luggage will be transferred by the airlines and delivered to the final destination. Southwest Customers can book travel and learn more about Volaris' service, policies, and procedures at www.southwest.com/Mexico.

"We are proud of the great work both airlines have completed in the past two years. This partnership will strengthen our growth strategy and will solidify our service in the United States," said Enrique Beltranena, CEO of Volaris. "The objective of this partnership is to provide a convenient and affordable itinerary for our Customers, while offering a higher level of service on both sides of the border."

Southwest has created an international desk staffed with bilingual Customer Service Agents to support this effort. Customers can call 1-888-329-8776 for assistance with their travel. If calling internationally, Customers can use 011-888-829-8776.

About Volaris

Volaris is a Mexican high-efficiency airline aimed at offering customers a unique travel experience—starting with the easy ticket purchasing process right through the On-Time Guarantee on all flights. With 21 Airbus A320 family aircraft, Volaris has the youngest and most modern fleet in Mexico reaching 24 airports and 35 routes across the country. From the start of operations in March 2006, the airline guarantees travelers comfort and reliability delivered by more than 1,500 employees making up the Volaris family and dedicated to strengthening the airline's commitment to excellent service and single-class treatment in a human way.

About Southwest Airlines

After nearly 40 years of service, Southwest Airlines (NYSE:LUV - News) continues to differentiate itself from other low fare carriers—offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded, now serving 69 cities in 35 states. Beginning March 13, 2011, the airline will initiate service in Charleston and Greenville/Spartanburg, South Carolina. Southwest also is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report™. Based in Dallas, Southwest currently operates more than 3,200 flights a day and has nearly 35,000 Employees systemwide.

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Airlines Haven't Been This Profitable Since 1978 - at Fortune
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[Cruncher]

Yes, it suks.

Our scope eliminates all domestic & far international codeshare. It allows intra-island & near international (with limits). Im not at home, but i think the limits are 4% of our domestic ASMs (with matching growth of ou own metal flying across the border). Someone can tighten me up here, if i am wrong.

 

[Skyboy722]

Yes, it suks.

Our scope eliminates all domestic & far international codeshare. It allows intra-island & near international (with limits). Im not at home, but i think the limits are 4% of our domestic ASMs (with matching growth of ou own metal flying across the border). Someone can tighten me up here, if i am wrong.

You're right.

 

[jwfrank]

............

 

[Full of LUV]

Was this not in your scope protection ? I guess it's kinda like outsourcing.... Can't tell me that the SWA BOYS are happy about this.... I find it sorta funny, actually

Don't think it's kinda funny, mostly sad. SWAPA has entered a new era with the same issues that effects the other major airline companies, they just don't fully realize it yet and still think mgmt is "gonna take care of them" in the end. The rooster is coming home.....

 

[CLARKGRSWOLD]

No... Its funny.. Because MGMT is MGMT. I have been hearing for years that SWA haS IRON CLAD scope... MGMT found away.

 

[Richard Gozinya]

No... Its funny.. Because MGMT is MGMT. I have been hearing for years that SWA haS IRON CLAD scope... MGMT found away.

Clark,

Please read Cruncher above, that was brought about during TA2. Mgmt didn't find a way, we had no codeshare restriction before or with TA1. All this happened just last year.

Dick

 

[Whataburger]

I think we'll learn the way with Volaris, figure it out, then send them packing. We are running classes next year. I don't believe our pilot group is gonna suffer.

Scope and codeshare are different.

Our pilot group voted on the last contract which had all the scope and codeshare provisions in it. It passed by 88%.

 

[CLARKGRSWOLD]

Hey what ever makes you sleep at night. Like it or not, outsourcing is happening right in front of you. It's easy to turn a blind eye with your pay scales.

 

[dicko]

Hey what ever makes you sleep at night. Like it or not, outsourcing is happening right in front of you. It's easy to turn a blind eye, with your pay scales.

I think you're probably going to be eating southern fried crow in about 8 months.

 

[GuppyWN]

88% of SWA pilots agreed to UNLIMITED "near-international" codeshare. It's not 4% or our ASM's, it's 100% if that's what Mr. Kelly wants.

NOW. That being said we have 100% control over DOMESTIC, FAR INTERNATIONAL and HAWAIIN codeshare. 0% of that is allowed under our CBA.

Don't agree with it. Would love to do a victory dance on Volaris' grave but my hopes were outvoted.

Outsourcing is outsourcing.

Gup

 

[737tanker]

GUP
Read Section 1, Paragraph F.4.b because it states that near international codeshare will be limited to 4% of the total ASMs from the previous year, plus any ASMs that equal the near international that SWA does.
However what SWA is doing now with Volaris is not codeshare, it is a Distribution Agreement. SWA is not selling SWA seats on Volaris, they are allowing anyone to buy tickets on a Volaris flight via the SWA website. So while SWA is acting as a travel agent for Volaris at least SWA passengers aren't being told they are flying SWA to Mexico.

 

[luv2fly]

737tanker, I believe even those flights sold on volaris are counted in the codeshare ASM's count.

 

[737tanker]

737tanker, I believe even those flights sold on volaris are counted in the codeshare ASM's count.

Unfortunately Distribution Agreements are listed after codeshare in the CBA, Section 1 Para. F.6. The only limitation in the CBA is it can only be "to and from Hawaii and international cities that in no way purport to be flown by the Company." So SWA can sell all the tickets they want on Volaris, just as any other travel agency or website, they just can't sell them as SWA flights.

 

[GuppyWN]

Aint it great?

Gup

 

[waveflyer]

What mgmt has expressed and history shows is that we use these codeshares and DAs to get our foot in the door- and when it makes sense for us to operate the flights - we do.

Why the lack of faith?

I'm as critical of industry mgmt as anyone- I think it's a lack of perspective and credibility to view GK in the same light as the rest of the Industry Captains

 

[chase]

Wave,

I agree. I heard one of the commercials today and it clearly states the flights are on Volaris. SWA will gain marginal income from the sale of the tickets without flying a single flight. Lets peal this back further and see the possible consequences via short-term vs. long term.

Short-term
1. SWA gains additional revenue with limited or no overhead. Adds $$ to our coffers and therefore our ROIC.
2. Gets people use to going to southwest.com in flying to Mexico....we need to train the folks in advance to the AAI/SWA deal being sealed.
3. SWA will be able to mine the data to learn the amount of traffic and profitable routes being planned for by Volaris....very valuable intel.
4. SWA has a great many things on its plate; exploting the Volaris marketing agreement keeps the topic of US/Mexico flying warm thereby allowing focus to be generated toward getting SWA planes flying the same routes in the long term.

Long term
1. IF SWA chooses to not pursue US/Mexico markets after the dust settles with AAI/SWA issues, even if they stay within the CBA agreements, expect pushback from the pilots.
2. Adding new employees at the bottom of the pay scale is a necessary ingredient for 15% ROIC....adding aircraft to highly profitable US/Mexico routes (assuming that is what the intel shows from the Volaris MA) adds new employees.
3. Their costs will be lower than ours granted; Volaris has exclusivity for selling their product on southwest.com (not 100% but I think so). If SWA chooses to stop the MA or codeshare and start flying our own aircraft, Volaris will have to find other methods of ticket distribution...not always easy to do.
4. SWA has more impetus to fuel growth with more airplanes and persons than simply allowing Volaris to capture all of the flying.

The camel is no longer a little under the tent for some carriers but in the bedroom hanging out.

We won't know if the same can be said for this foray by SWA and their approach and if SWAPA will be viewed in the future as being complicit in the erosion of our own flying or be hailed as having vision for taking a slightly different approach to opening up new markets. My crystal ball doesn't extend that far out but until then everyone at SWA should watch carefully and assess every step carefully.

 

[MILPILOT17]

Just remember, after we build it we can always burn it down. I always liked fire anyway?

 

[General Lee]

Wave,

I agree. I heard one of the commercials today and it clearly states the flights are on Volaris. SWA will gain marginal income from the sale of the tickets without flying a single flight. Lets peal this back further and see the possible consequences via short-term vs. long term.

Short-term
1. SWA gains additional revenue with limited or no overhead. Adds $$ to our coffers and therefore our ROIC.
2. Gets people use to going to southwest.com in flying to Mexico....we need to train the folks in advance to the AAI/SWA deal being sealed.
3. SWA will be able to mine the data to learn the amount of traffic and profitable routes being planned for by Volaris....very valuable intel.
4. SWA has a great many things on its plate; exploting the Volaris marketing agreement keeps the topic of US/Mexico flying warm thereby allowing focus to be generated toward getting SWA planes flying the same routes in the long term.

Long term
1. IF SWA chooses to not pursue US/Mexico markets after the dust settles with AAI/SWA issues, even if they stay within the CBA agreements, expect pushback from the pilots.
2. Adding new employees at the bottom of the pay scale is a necessary ingredient for 15% ROIC....adding aircraft to highly profitable US/Mexico routes (assuming that is what the intel shows from the Volaris MA) adds new employees.
3. Their costs will be lower than ours granted; Volaris has exclusivity for selling their product on southwest.com (not 100% but I think so). If SWA chooses to stop the MA or codeshare and start flying our own aircraft, Volaris will have to find other methods of ticket distribution...not always easy to do.
4. SWA has more impetus to fuel growth with more airplanes and persons than simply allowing Volaris to capture all of the flying.

The camel is no longer a little under the tent for some carriers but in the bedroom hanging out.

We won't know if the same can be said for this foray by SWA and their approach and if SWAPA will be viewed in the future as being complicit in the erosion of our own flying or be hailed as having vision for taking a slightly different approach to opening up new markets. My crystal ball doesn't extend that far out but until then everyone at SWA should watch carefully and assess every step carefully.

Hey Chase old buddy old pal, HOPE YOUR DAY IS GOING GREAT. Your new buddies at AT have been flying to Mexico for awhile now (I heard them down there once when they were doing MKE to Puerto Vallarta on a 737 charter), and they bring that expertise to your new merger. I am sure SWA management could use them more if they wanted, from any city in fact, since they are already familiar. Isn't that GREAT that you are merging with them? THEY ACTUALLY DO BRING A LOT TO THE TABLE, something those arbitrators will see most likely.

As far as for this Volaris deal though, many aspects are murky to say the least. Will Volaris be allowed to expand into more SWA US cities? Will SWA get a chance to reciprocate and fly their own equipment more often (AT already flies to CUN) and allow SWA pax to connect onto Volaris planes? Nobody really knows, except GK that is. I read the article about SWA looking at Hawaii too. Good ole Mike Boyd agrees that putting SWA 737-700s up against Hawaiian widebodies (and every other widebody from other airlines) really wouldn't be a great idea, because fares are so low already. Most legacies don't make money on Hawaii flights anyway, since they are full of frequent flyer awards. That article stated SWA is more interested in pax who come in FROM Hawaii, more like the ATA deal you guys used to have at OAK. IMO, it will be awhile until you guys get any Hawaii flights, or more Mexico stuff besides the AT flights to CUN. And, with the extra violence going on now in Mexico, that may be a GOOD thing for you guys. Maybe allowing Volaris to fly those flights is a SMART thing, safety wise at this moment.

Regardless, ALL OF YOU ARE FANTASTIC. REALLY, you guys are AWESOME IN A FANTASTICALLY GREAT WAY. And, if you have time tonight, please, do something nice for someone or something, like NOT asking aloud "Who allowed Shrek in the house?" when your Mother-N-Law comes over this Weekend for a Halloween Party at your house. See ya!


Bye Bye--General Lee

 

[shootr]

The union and company have agreed that Volaris distribution on Southwest's website counts in the 4% limit. Not that I like that whole thing but it's agreed upon.