Labor Concessions at SWA?

[Big Beer Belly]

Ah... my bad apparently. When I read "improved productivity" I didn't match that term with work another day for another day's pay. At my airline, agreeing to this "improved productivity" would, nevertheless, definitely be considered a concession. Most don't want to work another minute, let alone an entire day, even if more pay is involved.

Thanks for clearing this article up for me. I was really beginning to bum on this entire industry if SWA starts down the pay cut path. <ng>

 

[Chest Rockwell]

No sweat. Currently pilots at SWA average about 65 hours per month and GK wants to see that number up around 70. If that were achieved we could add something like 12? airplanes without hiring anyone. Not great if your in the pool but much better for job security when you get here.

 

[FlyBoeingJets]

Don't get me wrong here, SWA is the best airline out there (IMHO). It's the best airline to work for and has outstanding compensation for the revenue generated.

But...

1) When the fuel hedges run out fares will have to go up or some other expenses will have to come down.

2) If costs come down at competitors SWA's may have to come down too.

3) SWA is wringing great efficiency out of its assets/resources. How much more efficient can we get? Should we be looking over our shoulder?


On the positive side...

1) Retirements don't generate big training costs like it does elswhere.

2) Lease rates on 110-160 seat aircraft are expensive vs. SWA's purchase and financing model.

3) With gas high, the inefficiency of the hub and spoke will continue to hurt the legacies.

4) Debt and interest payments at leveraged carries will continue to hurt them and make them vulnerable to new entrants and established low cost carriers.

5) The legacies are now parking older aircraft and trying to find ways to replace them. If they can't they will lose passengers and revenue.



Wage concessions?? The negotiations have begun and the threat of them will be overstated.

Productivity increases will be far more palatable and will offer more flexibility in the long run. That flexibility may make it much cheaper as well. Every pilot wants to work for the best paying company. Even if it means working their tail off. Higher wages will attract the best applicants and keep them. Also, a working pilot is more current and less likely to have an accident. I see a win/win here.

The employees will be more dedicated if they spend more time at work. Not a bad option when it is so much fun to be here.

 

[Data]

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