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Southwest/ATA Plan WOW....

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"It has only a net loss of a few aircraft ovet the next 12 months with plans to INCREASE the fleet size of ATA".

Wonder how this will sit with SWAPA?
 
ted evenoff said:
If a bankruptcy judge approves, Southwest would oust ATA senior executives, inject $47 million in cash, take a 35 percent stake in the Indianapolis carrier and name new senior managers who would quickly work to cut labor costs 15 percent to 20 percent, according to a draft copy of Southwest's plans prepared for ATA's bankruptcy auction.

There could be a slight problem with this plan.

SWA will need to work very diligently to assure the present WN employee group that this labor cost reduction will not be contagious. I'll bet that the waves of doubt are already rolling through the WN labor groups. I hope that Gary and Colleen have a plan.
They must have foreseen the potential for emotional reprecussions resulting from the impact of wage cuts even if those cuts don't happen to WN badged employees, so it would seem that they have a plan to maintain confidence at home. Again, I hope so.

Does anyone know of the difference between ATA and SWA wage scales? If the cost cutting only serves to normalize between the two companies, SWA might pull it off without scaring their own people.

This could get interesting,
Calvin
 
tz800ca said:
such as a passenger going to Indianapolis from Fort Worth, Texas, flying the first leg on Southwest and changing at Midway to an ATA flight.
I believe this would be the other way around.[ DFW(ATA)-MDW-IND(SWA) ] This would be a little way around the Wright Amendment.
 
"Does anyone know of the difference between ATA and SWA wage scales".

With SWA increase in pay and ATAs decrease of recent, SWA pay is above ATA by a considerable margin.
 
:-) said:
Does anyone know of the difference between ATA and SWA wage scales?


Southwest $182 $90
ATA $145 $71


12 year Ca & 3 year FO
 
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The decreses in labor costs would most likely come from changes in work rules and our many ineffeciencies. There's nothing like flying one two hour leg a day only to sit in the hotel for thrity six hours. Although I'm sure they will ask for less pay as well.
 
Integration issues aside.......

With SWA having excellent fuel hedges and probably the ability to negotiate leases on the Boeings, ATA could very well become profitable almost immediately.

SWA does do some charters, not sure how often, but I do see them around once in a while. The DOD contracts are a money maker for ATA, so why stop a good thing. Sure, the L10 is old, but it does the job, then again SWA could cut a deal with Boeing, or another airline, to aquire some 767, something ATA has been rumored to be looking at in the past.

If SWA does indeed plan on keeping ATA around, it certainly seems like a better deal than Airtran, who appeared only to want the gates with an "orderly" phaseout of ATA.

Interesting times ahead!
 

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