Southwest Offers CASH for Pilots to leave!

[CheapFlyer]

I would jump all over this if I was 60+ with 20 years of captain pay under my belt.

-CF

 

[Colonel Savage]

I guess the real question is why are they doing this.

 

[Secret Squirrel]

I would jump all over this if I was 60+ with 20 years of captain pay under my belt.

-CF

Problem is when three ex-wives come after their share it will be around $5000 after taxes.

 

[shootr]

We are overmanned as a company. This offer is open to almost all employees but only pilots have been offered this high of an amount (it's based upon salary). SWA does this every few years to weed out the most senior employees. Rarely are pilots included.

Due to the shoulder cuts, we're about 200 pilots overmanned. This may be a way to mitigate it...if anyone takes it.

shootr

 

[satpak77]

still unanswered....

We are overmanned as a company. This offer is open to almost all employees but only pilots have been offered this high of an amount (it's based upon salary). SWA does this every few years to weed out the most senior employees. Rarely are pilots included.

Due to the shoulder cuts, we're about 200 pilots overmanned. This may be a way to mitigate it...if anyone takes it.

shootr

Questions still remain

1. As discussed above, "pilots are rarely included". OK - Why now?

2. Ok, a few guys will take it. However what if not enough (whatever # worked out by the corporate office), then what? This is supposedly aimed at "senior captains." How many low level FO's make up one senior captain, in terms of cost to the company? Three? So does that mean three (or whatever, this is used only for discussion) FO's will be furloughed for every non-responding "senior captain" to this offer?

3. Lets say 10 million guys (again, used for discussion) take it, now what happens to manning and fleet plans? Will hiring resume? Based on #2 above, it is arguably more cost effective to have three bodies on the property at the cost of one senior body in one cockpit.

4. Age 65 - I wonder what this is actually costing SWA in terms of salary, etc. 200K a year for 5 more years past age 60, well that is 1M dollars, for one body. Would I pay $250,000 to get rid of that 1 million dollar guy? Yes, of course.

etc etc

 

[jimmykjet]

Why would any leave?

There is no minimum required work month. Work zero and gain five weeks a year. Hmmm figure this out guys...

5 weeks vaca per year with overlap pay =

48 TFP per week x $200 per hour = $9,600

5 weeks = $48,000 per year to not work one day???

5 yrs = $240,000

I'd say they are about $110,000 short!

That does not even include sick time, VJA and training. They could come to work about 12 days a year and easily make over $100,000! And not draw a dollar out of the 401K.

Young guys continue to enhance their careers!!

 

[The Prussian]

Why would any leave?

Three words..."all day Ray"

 

[Dude]

Dave already had his paperwork in and was told to pull it so he could receive the buyout. Unfortunately the company has decided that anyone with previously submitted retirement paperwork would not be eligible for the buyout. Typical BS.

 

[shootr]

1. Why pilots? Because we hired 200 too many because the PD thought we were going to expand...we didn't.

2. Not enough guys take it? We're not overmanned enough for a furlough to make financial sense, if that's what you're getting at. Our lines will be a little lean and there will be less EF/VJA to pick up. Also, you can't compare FO/CA salary for manning problems. If a senior CA leaves, he'll be replaced by a junior CA. The pay differential between a senior and a junior CA at SWA is not that large. Little difference to the company bottom line. The company is not offering early outs as much to save specific salaries, rather it's so we have the right number of pilots.

3. What if too many guys take it and we have to hire? Not gonna happen. IF it did, everybody wins.

4. Age 65? Again, a senior CA is replaced by a junior one. Not that big of a salary difference. A 1 million dollar guy wil get replaced by a 990,000 guy. Now, if a 63 year old calls in sick a great deal more than a 45 year old, that could make a big difference.

Hope this helps,
shootr

PS Already voted No!

 

[PropPiedmont]

If the company was smart they would have included a one time buyout clause in the TA. They could have offerred $300K and got a lot more YES votes to pass the TA.

Of course, they assume it will pass. But, if it doesn't they could have locked it in. Maybe, a new buyout number will come from a renegotiation of the TA, when it hopefully gets rejected.