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Southwest looking to contain costs - article

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How's those FO flows coming along?

Look, Sister, when you have ten unblemished years in the left seat, you can talk. . . . Right now, you don't even have one. Good liuck. We're all counting on you . . . unfortunately. :erm:
 
Reality is that sw always had a labor cost advantage until the mid 2000s, then they had a the fuel hedges. Throw in a lot of enthusiastic employees and they were minting money and putting a world of hurt on the rest of us. The product was not anything to write home about but it didn't matter because the price was right. Get em on, throw some drinks, peanuts and a few corny PA's out and you were loved. Now they have neither a fuel, labor cost or product advantage and they are not sure what to do. I WILL NEVER COUNT SWA OUT... They will find a way to adapt. Most likely will freeze pay or add baggage fees or other fees and hope that the 3 legacies get large enough raises in the coming years to allow growth again.
 
Reality is that sw always had a labor cost advantage until the mid 2000s, then they had a the fuel hedges. Throw in a lot of enthusiastic employees and they were minting money and putting a world of hurt on the rest of us. The product was not anything to write home about but it didn't matter because the price was right. Get em on, throw some drinks, peanuts and a few corny PA's out and you were loved. Now they have neither a fuel, labor cost or product advantage and they are not sure what to do. I WILL NEVER COUNT SWA OUT... They will find a way to adapt. Most likely will freeze pay or add baggage fees or other fees and hope that the 3 legacies get large enough raises in the coming years to allow growth again.

With the addition of bag fees, they will lose marketshare. Pretty much the inverse to Gary's previous statement that no bag fees directly led to increased marketshare.
 

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