Southwest's magic formula: low costs, low fares and high pay

[atafan]

Yes there is a big LUV fest at SWA. Every airline hiring is having one. We all hire until the furloughes start.

That's one of the things I like about SWA pilots, for the most part you guys are well grounded and understand this business. Many of you have seen both sides of the business and understand what it's like being the under dog.

I still remember the Chief Pilot addressing my new hire class at Pan American World Airways over 20 years ago. He said, "Congratulations gentlemen you are the best of the best, you will all be 747 captains in less than 10 years!" You can only imaging the "Luv Fest" we had. OH WELL!

 

[SWAdude]

Big Slick,

I agree. Pay cuts might be in our future.

But if you don't want to get beat up on pay issues, be more specific and get your facts straight.

Yes there is a big LUV fest at SWA. Every airline hiring is having one. We all hire until the furloughes start.

Sorry pal. Unless we start losing gobs of money then paycuts are not in our future.

Please clarify your position so the union doesn't come after you! :laugh:

 

[FlyBoeingJets]

Sorry pal. Unless we start losing gobs of money then paycuts are not in our future.

Please clarify your position so the union doesn't come after you! :laugh:

I know you are going to take this the wrong way. I don't mean any disrespect by it, but here goes.

You talk like a typical Captain on the pay raise, freeze or cut issue. Better than most airline Captains (Because SWA Captains are generally more in tune with reality), but different than the average FO.

My position is we should take a pay cut when one is needed. What, exactly, is the plan for when the hedges get less lucrative? The membership is a little concerned about the codeshare thing, but can you blame the company when we are so darned expensive?? I know this is private SWAPA stuff, but I mostly get "trust us, were working on it". We'll, I do trust but I don't smoke the funny stuff either. I have trouble seeing how we're going to get from here to a new contract with cost of living raises and other "enhancements" that cost the company $ and not take it in the shorts on growth.

My thoughts are in regard to 2008 or 2009 and beyond. I still feel the growth and profits for 2006 and 2007 are firmly on target.

 

[Dave Benjamin]

We've had this discussion before.

Is the glass half empty or half full?

Neither. The glass was improperly specified and should have been a smaller model.

 

[Jon Rivoli]

If oil stays at $70 a barrel those new -700's will be replacing you're -300's and -500's, growth will go to negative numbers and say good bye to 25-30% of you're paycheck. I believe GK said that at over $50 a barrel the LCC model doesn't work. Welcome to Denver future legacy type network carrier. And no, I will not be re-applying.

Peace

 

[FlyBoeingJets]

The way -700s are coming online, if it came to some -300 replacements, the growth could still continue as -300s were replaced. But I don't think most of the -300s are going anywhere anytime soon. There are no current plans to get rid of any -300s. Look at all the MD-80s elsewhere, they are still useful.


How much is debt at UAL, DAL, NWA, JBLU and AA adding to their CASMs?? Combined with inefficient scheduling (pilots getting rig for one or two legs a day) at the legacies, this may more than offset the "High" pay at Southwest as fares continue their seemingly inexplicable climb this summer.

 

[The_Russian]

Neither. The glass was improperly specified and should have been a smaller model.

I thought it was funny!

 

[SWA/FO]

If oil stays at $70 a barrel those new -700's will be replacing you're -300's and -500's, growth will go to negative numbers and say good bye to 25-30% of you're paycheck. I believe GK said that at over $50 a barrel the LCC model doesn't work. Welcome to Denver future legacy type network carrier. And no, I will not be re-applying.

Then we will raise ticket prices. We have all the pricing power - we make money in this environment, we are gaining market share baby!.

Good don't re-apply and stay off the Southwest Airline Threads... :laugh:

 

[SWAdude]

I know you are going to take this the wrong way. I don't mean any disrespect by it, but here goes.

How would you know that. And if you knew that, why would you say anything?

You talk like a typical Captain on the pay raise, freeze or cut issue. Better than most airline Captains (Because SWA Captains are generally more in tune with reality), but different than the average FO.

I guess until you become a Captain, then you will change your tune? I didn't.

My position is we should take a pay cut when one is needed. What, exactly, is the plan for when the hedges get less lucrative? For the entire employee group at SWA to take a pay-cut obviously.

The membership is a little concerned about the codeshare thing, but can you blame the company when we are so darned expensive?? I know this is private SWAPA stuff, but I mostly get "trust us, were working on it". We'll, I do trust but I don't smoke the funny stuff either. I have trouble seeing how we're going to get from here to a new contract with cost of living raises and other "enhancements" that cost the company $ and not take it in the shorts on growth. Awww...the point is you are concerned about your growth at SWA. You should be. But not at anyone elses expense please.

My thoughts are in regard to 2008 or 2009 and beyond. I still feel the growth and profits for 2006 and 2007 are firmly on target. We pay less for the hedges at a less percentage than we did last year but we are predicted to earn more. Why are you not concerned for this year or next but you are for 2008?

I know you are going to take this the wrong way. I don't mean any disrespect by it, but here goes.

You are a bit on the naive side in my opinion.

 

[SWAdude]

Then we will raise ticket prices. We have all the pricing power - we make money in this environment, we are gaining market share baby!.

Ding!! We have a winner!!

Just like we did this year.

Who said Captains think different than the average FO!!