Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

Bad news for some SWA employees

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web

lowlycfi

Well-known member
Joined
Oct 2, 2003
Posts
595
...from PRN Newswire...

After extensive deliberation,Southwest has reluctantly concluded that our nine current Reservations Centers must be consolidated into six. As you may know, the number of telephone calls handled by our superb Reservations Agents has declined consistently over the last several years as our Customers have chosen other means for booking travel. Based on an exhaustive review, the difficult decision to consolidate the operations of our Reservations Centers at Dallas (DRC), Little Rock (LRC), and Salt Lake City (URC) into our six other Centers was made. The three Centers are scheduled to close February 28, 2004.

Employees from DRC, LRC, and URC, totaling approximately 1,900, will be allowed to relocate to one of our six other Reservations Centers. Employees who do not wish to relocate will be offered the opportunity to retire or resign with a generous severance package. The package includes a cash severance payment as well as pass privileges, medical coverage, and career guidance for a certain period of time.

“Our Employees are our most valuable asset, and any decision that affects any of your lives is not taken lightly,” said President Colleen Barrett.

Reservations’ Senior Leadership explained that we tried to balance staffing to the decreasing phone demand by allowing for natural attrition, changing hours of operation, increasing leave without pay (LWOP), and converting some fulltime Reservations Agents to parttime. Unfortunately, these efforts have not been sufficient to match the way our Customers now book their travel. The excess capacity, spread out over nine underutilized facilities, is inefficient and has produced an unproductive work environment, with unsatisfactory choices of shifts for many of our Reservations Employees.

Southwest has a fiscal responsibility to our Shareholders and our Employees. While we remain profitable, our profits are down, and our financial returns are unsatisfactory. In particular, our costs are rising at a time when low-cost competition is rapidly increasing. It is only by making such difficult choices that we can protect the future competitiveness of Southwest Airlines as well as the future job security and Profitsharing of our Employees. We did not furlough after the devastation of September 11, 2001, and we will not furlough now
 
this makes sense

The airline must cut costs. Those who cannot re-locate, will get generous severence packages. This is a first class move, by a first class airline. This is yet another admission that the current model is not working, and more changes are in store for the future. I have no doubt that the employees will do "what it takes" to keep the airline at the head of the class for many years to come.

I hope most of you WN people will get a kick out of this avatar I borrowed. It's just a reminder that smaller is the way to larger profits for WN. Of course I'm hoping EMB will become the catalyst for larger profits and future growth.
 
This is yet another admission that the current model is not working

Which is why they made $106 million in the third quarter and have made $376 million so far in 2003, while everyone else is bleeding money. Year to date income is up 53% over last year. They have announced accelerated deliveries and will begin hiring soon. Yep, things are definately not working over there.
 
The idea that consolidating the Res centers is somehow proof that the business model isnt working is just plain flame bait..

If anything it confirms just how effective the online booking program was and will continue to benefit the company..

Every time SWA does something new and creative folks yell"the business model is failing"..Those that do so clearly dont understand the basis for our "model"..

As technology changes and makes more cost effective systems available SWA will look at and consider all aspects of applying any new advances to our "model".

If it makes sense,is more cost effective,and fits our
business "model" then it is just as much a part of of our original "business model"as the 737-200 was at the time..

Just because we are now flying 737-700s with wingletts doesnt mean the "model" is failing..It is both a indication and confirmation of one of the basic elements of our plans..Flexibility..

Flexibilty allows us to remain cost effective thru advances in systems and inables us to adapt quickly to changes in the market place..
As we change some aspects of how we do business in the future,rest assured that it is not a failing of any plan or concept..

But rather a continuation of what we have done for over thirty years..Keeping a close eye on the store and making changes when needed to insure we have the best product we can provide..

Anything less than that would be a failure of our "business model.."

Mike
 
Last edited:
Back to something more related to the original topic...

On the crew portal this morning SWA announced they are consolidating the field marketing reps into seven districts based at six of the pilot/FA crew bases and.... BNA? MCO wasn't included, and all the Florida cities fall into BNA's area.

I don't want to read too much into it, but I thought it was a little strange that they would consolidate into the crew bases but leave out MCO.
 
BNA next crew base?
 
NEdude

Let's not skew the numbers. There was a $270M gov't grant for the war in the 2nd Q. It netted out to $143 after taxes and money put into the employee retirement account.

Let's look pro-forma into 2004. The pilots will get a 14% raise. How much will that cost the company? Just a guess, but I would say close to $70M extra next year. Add probably another $10M once the FA's get a new contract and work rules. That's $80M off the bottom line next year. There won't be a dime from the Feds in 2004.

With all the new 737NG replacing the 732's, capacity is going up probably 7 to 8% in 2004. Jim Parker has said profit margins need to be at 15%. They are running 7 to 8% in 2003, and in my opinion will be less in 2004.

The model is not working, and changes will be made.
 
It seems like I've been hearing the BNA base rumor for the 9 years I've been at SWA (along w/ LAS and MCI even). I wouldn't read anything into that.
 
Yea, SWA's business plan just plain sux! All they do is make money. Maby they should call UAL or USair and see if they could get a look-see into how the other major airlines run their businesses.
 
Atleast SW is helping their employees find jobs at other stations. They actually care about their employees. Must be nice.

Bye Bye--General Lee:( :rolleyes:
 
xXpress1

Read the last paragraph of the news release.

"While we remain profitable, our profits are down, and our financial returns are unsatisfactory. In particular are costs are rising at a time when low-cost competition is rapidly increasing. It is only by making such difficult choices that we can protect the future competitiveness of Southwest Airlines as well as future job security and profitsharing of our employees."

Sounds like more than a tweak is coming,:)
 
General

Good to see you back. I'm sure it was nice to sit back and let someone else do the flying.

Looks like LM wants to get something done by year end. It looks like it may happen. He sounds like he's willing to bend.
 
Lowecur,

Good to be back. Well, I hope LM will bend, because we will probably bend for him too. We all want this company to do well, just not get slammed in the process.

Bye Bye--General Lee;) :rolleyes:
 
Re: xXpress1

lowecur said:
Sounds like more than a tweak is coming,:)

Sounds like you have the vision of Stevie Wonder. Since you don't fly airplanes or work for an airline why don't you go back to posting on the "teenage t!t freaks" website. I miss all your insight Paco.
 
Thanks Dennis

Unfortunately, the hyperbole got lost in your translation.

Don't knock Stevie Wonder. He has wonderful vision in his mind's eye. You should try it sometime.

Yet, another parrot heard from. There has to be some pilot from Southwest that can think for themselves.
 

Latest resources

Back
Top