AlbieF15
F15 Ret/FDX/InterviewPrep
- Joined
- Nov 25, 2001
- Posts
- 1,764
While utilization is obviously one main component of hiring, you also need to ask what the future "optimum" manning is going to be. Did SWA have it right in 2008, or were they too lean or too fat? After the wicked pullback of the economy in 2008, I think many airlines will be slower to hire extra bodies and will accept hiring amouts of "premium" flying, even when flying returns to former levels. What was "normal" in 2007 may no longer be the normal manning equation. There will be fewer jobs, but those jobs will likely be more lucrative.
As for a merger with AirTran... With everyone is a rush to "get big" right now, does anyone think that the smaller niche carriers might actually have some advantages? The city pairs that originally had DL/NW competion or CAL/UAL competition probably have a lot higher yields now. Once those yields get to a certain level, companies like SWA, FL, and B6 can offer services and compete on both price and service. I'm a pilot--not an airline analyst, but if the majors going from 4 to 2 increases prices on some routes, it opens doors for more competition from SWA. Being nimble might just be more profitable that being big for the next few years... (insert crude sexual allegory here).
As for a merger with AirTran... With everyone is a rush to "get big" right now, does anyone think that the smaller niche carriers might actually have some advantages? The city pairs that originally had DL/NW competion or CAL/UAL competition probably have a lot higher yields now. Once those yields get to a certain level, companies like SWA, FL, and B6 can offer services and compete on both price and service. I'm a pilot--not an airline analyst, but if the majors going from 4 to 2 increases prices on some routes, it opens doors for more competition from SWA. Being nimble might just be more profitable that being big for the next few years... (insert crude sexual allegory here).