Kelly: SWA costs too high

[redflyer65]

The more plane types your airline flies, the more unproductive the group is because of the training involved moving from fleet to fleet, especially with retirements. That is something you won't see yourselves,

Your absolute right OYS. Your productivity blows. Like when you and Genital pound your chest about how there will be 11 training events for each retirement. Do you comprehend what a massive drag that is on Delta's bottom line? And your proud of that? Good luck...

The best I see DALPA getting is a minor adjustment for cost of living...anything more and you guys are dreaming. It will be Fablous!

RF

 

[On Your Six]

Your absolute right OYS. Your productivity blows. Like when you and Genital pound your chest about how there will be 11 training events for each retirement. Do you comprehend what a massive drag that is on Delta's bottom line? And your proud of that? Good luck...

The best I see DALPA getting is a minor adjustment for cost of living...anything more and you guys are dreaming. It will be Fablous!

RF

When you make 4 times the revenue of SWA, it doesn't matter much. This is the cost of doing business. We don't decide how many planes types there are, they do. Being a "Worldwide" carrier, a 737 doesn't fit all routes. You may try to use a 737 on all of your routes, but that isn't the path DL chose. Remember, if DL is making this much profit it BAD economic times, how will it do in BETTER economic times? Debt is being paid down, profit sharing checks are going out, new contracts are coming up, things are moving here. You guys need to repair your culture and GK is already looking at ways to pare your costs down, he stated that himself.

As far as Dalpa goes, they have external pressures now in the form of an independant union drive. They know more is involved now, and they don't have much room for error. I personally hope they come through and get us significant improvements. But, everyday I don't have to go through ELP on the way to Houston is a great day for me.


Godspeed!


The OYSter

 

[chase]

Increases in productivity are tougher to obtain these days but so is finding oil that the US needs....creative solutions to these challenges are resulting in more and more resources being found.

There are finite hours in a workday and finite calendar days but to say there can't be creative and innovative methods of improving productivity is not true. SWAPA and SWA has some pretty creative thinkers.

The second biggest cost to SWA is fuel; reducing that demand would increase the bottom line. Comments below show that our fuel burn will be reduced in the future with the addition of the "max" to our inventory. Plus we can still pay for airplanes instead of leasing them which is the acceptable and more expensive method operating a large fleet of airplanes.

Analyst Comment by Michael Derchin at CRT Capital Group

Van de Ven said Southwest would spend an average of $1.2 billion a year from 2012 through 2022 on the new planes, which would top $13 billion. Michael Derchin, an analyst with CRT Capital Group, said Southwest generates enough cash that, together with its cash on hand of $1 billion, can pay for the aircraft while maintaining its investment grade credit rating. "They needed to do this,'' Derchin said. "Their labor costs are on the high side because they're prosperous, so when you look at how they can reduce unit costs further, you have to look at more fuel efficient aircraft.''

This doesn't mean employees can ask for the moon during negotiations but if combined with meaningful tweaks to productivity, benefits are not expected to decline but increases will be tied to profitability which at the end of the day is what generates growth.

 

[redflyer65]

Increases in productivity are tougher to obtain these days but so is finding oil that the US needs....creative solutions to these challenges are resulting in more and more resources being found.

There are finite hours in a workday and finite calendar days but to say there can't be creative and innovative methods of improving productivity is not true. SWAPA and SWA has some pretty creative thinkers.

The second biggest cost to SWA is fuel; reducing that demand would increase the bottom line. Comments below show that our fuel burn will be reduced in the future with the addition of the "max" to our inventory. Plus we can still pay for airplanes instead of leasing them which is the acceptable and more expensive method operating a large fleet of airplanes.



This doesn't mean employees can ask for the moon during negotiations but if combined with meaningful tweaks to productivity, benefits are not expected to decline but increases will be tied to profitability which at the end of the day is what generates growth.

Chase,

Your exactly right. OYS doesn't understand that, nor does he really care...he only owns 5 shares of DL stock. It's someone elses problem.

This is were that massive debt to equity ratio between DL and SW come into play. Over 85% of Southwest planes are owned outright. An oddity in the industry. I think it keeps things profitable. With most other airlines, every single peice of equipment is leased, including the planes.

RF