HA25
Tokyo Tokyo!
- Joined
- Dec 16, 2001
- Posts
- 3,643
This debate is going on on various threads, however there are two points to be made about SWA and others.
Generally, while profitable in good times, discount carriers have been better off in the bad times than the traditional carriers. However the traditional carriers do much better in the boom times (which these are not). This is why AMR has more than 2.5 billion in cash and 6 billion is payed off planes, they made a lot of money in the late 90's.
Also, SWA has a significanly lower cost structure......all on the back of their workforce. Either they have to step up to the majors's or the majors will be forced to chip away at ALPA/APA contracts until they can compete with the 800lb gorilla of domestic airfare.
Generally, while profitable in good times, discount carriers have been better off in the bad times than the traditional carriers. However the traditional carriers do much better in the boom times (which these are not). This is why AMR has more than 2.5 billion in cash and 6 billion is payed off planes, they made a lot of money in the late 90's.
Also, SWA has a significanly lower cost structure......all on the back of their workforce. Either they have to step up to the majors's or the majors will be forced to chip away at ALPA/APA contracts until they can compete with the 800lb gorilla of domestic airfare.