LUV not showing the LUV

[Mookie]

SWA is under a lot of pressure to maintain profitability.

Really???? No shaet sherlock

Mookie

 

[pilotyip]

Really???? No shaet sherlock

Mookie

The reality of more money going out than coming in is hard for some people to accept. The costs have grown faster than income. The hedge miracle is over. They can not rasie fares, they are already the high price carrier. Not be beat up SWA, but the traditional flyer looking for a cheap fare to visit grandma on her birthday has many more options today than 10 years ago before the legacy BK's

 

[Ty Webb]

Whether or not the above posts hold any truth to SWA is debateable. However, none of them have to do why SWA wants to outsource the ground ops jobs. They only want to do it in places where they have very few flights per week. It does not make sense to have full time personnel in place when they are only needed at certain times.

This is true. There are places that AAI serves that are operated profitably with outsourced ramp and ticket counter, but are not operated every day, or with too few flights to support having our own staff, equipment, space, etc.

It's not just the employees, but also the equipment, leases, etc.

Now, I believe that lets the camel's nose under the tent so I wouldn't like it either.

Generally, I would agree, too; however, sometimes, AAI has used outsourced resources to establish service, then switched to our resources when it became more profitable to use our own equipment/people.

An example was when AAI used 3 Ryan Airbus for twice-per-day LAX, SFO and LAS service, while we were putting the 737 program in place. This service, when combined with competition from Delta, ended up squeezing JetBlue out of the ATL market. We now operate about a dozen or more flights per day into those cities.

 

[canyonblue]

They agreed to it on their last contract. Anything less then 8 or 12 flights per day can be outsourced.

Yeah, and now they want to change it back. They willingly gave this up for higher pay and better work rules, now its come back to bite them. Not Southwests fault.

 

[Crash Pad]

They agreed to it on their last contract. Anything less then 8 or 12 flights per day can be outsourced.

I was talking to station person the other day and I didn't know this piece of the puzzle. Apparently they were all being let go or offered a position at another SWA station. Which most bag throwers won't move for that job.

So the new SWA play book looks like this:
1. Shutdown AAI service to a low frequency station.
2. Reopen the station as a SWA station. Outsource the ramp because it is not grandfathered and has less than 8-12 flights.
3. Keep AAI doing the highest yield international at the lowest cost for as long as possible.
4. Bring AAI over to replace retirements.

Everyone bags on SWA for being in the stone age, but these guys are good.

 

[vixin]

I also just read its 8 flights or less.

 

[SplitBar]

SWA is under a lot of pressure to maintain profitability.

SWA stock is basically worth what it was 20 years ago. 20 years of profitability and the stock hasn't done squat.

 

[tzskipper]

SWA stock is basically worth what it was 20 years ago. 20 years of profitability and the stock hasn't done squat.

With the exception of splitting.... Still not a great return over a 20 year time frame...

http://getsplithistory.com/LUV

 

[Bake]

I didn't hear anything and even forgot my name after I saw your avatar!!

As long as you didn't forget your wife's name, it's OK. And her name is Heidi. repeat, Heidi. repeat, Gilmore, Happy Gilmore..

 

[Bake]

Ty, I think you are have some concrete in that sand. Ha ha. SWA has done similar things with routes. They would always start out with Saturday only non stop service to see how it would perform. If it did well, other days were sure to do good. Here, we are kind of stepping in the same pooo. If this destination does well, we make it full time and hire full time employees. If it does not, we pull the plug and no one gets fired except the contract guys. I don't know, I'm just a damn landlord. Anyway, I think you are on to something.

Bake, (quit staring at her ass, it may go away.)