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

[ivauir]

Ooooh, big angry red words. Scary.

I don't think it too soon to call it, we have a burgeoning class of egomaniacs at SWA. And at least one at CAL I think you've got the golden goose in, at least, a half nelson. You have no idea what you are talking about - utter flame bait.

If every SWA employee group (across the board) enjoyed the same percentage higher pay that SWA pilots have over legacy pilots, are you going to produce a cheaper block hour?

More ignorance - do you have any clue how much of a raise our FAs got? Which employees groups have taken pay freezes? Who has accepted deferred compensation?


You continue to smoke crack and call names, but it doesn't change the fact the the pilot cost per block hour at my airline is cheaper than at yours. I tried putting my key points in bold red so you might actually read them, but it is becoming ever more clear that your only purpose on this board is to bad mouth SWA and sow animosity in our ranks.

 

[ivauir]

I don't think it too soon to call it, we have a burgeoning class of egomaniacs at SWA.

Based on talking to 3 FA's on the bus and reading this website you think you are qualified to pronounce judgement on 4500 people? Who is the egomaniac?

 

[Flopgut]

Based on talking to 3 FA's on the bus and reading this website you think you are qualified to pronounce judgement on 4500 people? Who is the egomaniac?

More ignorance - do you have any clue how much of a raise our FAs got? Which employees groups have taken pay freezes? Who has accepted deferred compensation?


You continue to smoke crack and call names, but it doesn't change the fact the the pilot cost per block hour at my airline is cheaper than at yours. I tried putting my key points in bold red so you might actually read them, but it is becoming ever more clear that your only purpose on this board is to bad mouth SWA and sow animosity in our ranks.

-------------------------

Wait a sec, did I call someone a name in this thread? Oh I did, sorry. I meant egomaniac in a nice way. Just trying to get you riled up. The "golden goose in a half nelson" comment needed a smilie face after it. It was a little funny, right?

Look, I should probably thank you because I get a lot of motivation from you SWA folks. I use the board to gain insight and try to figure you out. I also do all the other things you suggested earlier, like writing a rep and calling ATC. The SAT thing is funny. We are forever being put behind SWA in SAT, AUS, and HOU. The favor you all enjoy is a real headwind for us. But we are working on changing that.

You've got animosity coming and I have nothing to do with it. There are a lot of SWA employees that feel they have contibuted who aren't getting a payday. You shouldn't have to hear that from me; My guess is that you already know it and just wish it were flame bait. (wish all you want) Couple that with what is obviously a change in the humility and demeanor of the pilots and the stage is set. I don't think its anyone's fault, it's just how things go in this economy.

OK, go ahead and computer yell at me in angry red again. Did I see you in the terminal the other day? Do you fly with a banjo?

 

[ivauir]

What is it about SWA that makes you this way? One week we are bringing the industry down because we don't demand more pay, the next week we are making other employees made because we make too much (like the multimillionaire ops agent in SAT - I bet he is real mad). Now you are prentending to be an expert on labor relations at SWA? Gimme a break.

Face it, you are just looking for negative stuff to say about SWA. Reality not with standing you just make something up and run with it.

The favor you all enjoy is a real headwind for us. But we are working on changing that.
BS

You've got animosity coming and I have nothing to do with it. BS There are a lot of SWA employees that feel they have contibuted who aren't getting a payday. A 30% raise is not a payday? You have no idea what you are talking about.

OK, go ahead and computer yell at me in angry red again. Yelling doesn't do any good - you still don't seem to be reading it. But I will continue to challenge your untruths untill I get bored again. Did I see you in the terminal the other day? Do you fly with a banjo?

I doubt you saw me I don't do a lot of Texas flying ... and it is a guitar

 

[mdf]

Flopgut,

I thoughts things were pretty good over at CAL. Why worry so much about SWA labor relations? I notice you have a bipolar thing going with SWA. One week your over it, the next week your drinking the SWAHATERAIDE. Your kind of creepy.

 

[big_al]

if it wasnt for the fuel hedges, SWA would be in the red.

 

[race#53]

if it wasnt for the fuel hedges, SWA would be in the red.

Bid al,
That hedge rap is getting old, that is like saying SWA pays less for it's
pencils and they would have lost money if they paid the same as the
other airlines.
They took a big gamble with futures and won, get over it.

mdf,
i flew on SWA today and even got a "how are you doing " from the ramp guys!
We had a pretty blonde FO that looked 18 years old to me, flight 2768 from
Houston to Chicago.
PS, your open seating works twice as fast as assigned, people just will
not move when they know the seat is waiting for them.
Lots of "suits" on packed flights, you guys are a class act.
Keep up the good work.

 

[Flopgut]

Flopgut,

I thoughts things were pretty good over at CAL. Why worry so much about SWA labor relations? I notice you have a bipolar thing going with SWA. One week your over it, the next week your drinking the SWAHATERAIDE. Your kind of creepy.

Wait, I thought we were getting along great. What do you expect me to act like? My reality is disgruntled, overworked, hated-labor-lead-pipe-cruelty, and yours is REM's shiney-happy-people. I think we are getting along quite well considering.

 

[mdf]

Hey Race,

Thanks for the nice comments, glad your flight was nice.


Flop,

Got a chuckle out of the "Shiney Happy People" thing. I pegged you for a salty dog, but you must more of a whippersnapper, if you've heard of REM.

 

[ivauir]

... and yours is REM's shiney-happy-people. I think we are getting along quite well considering.

LOL - OK, you win.

BTW I used to live(and fly) in South America - you guys always did great. Flying wise and customer service wise,

Is the No Bar still in Quito? What about Papillion? The Majic Bean used to have great eats.

 

[LearLove]

They SWA are the highest paid because everyone else came down to their level and below.

Call me crazy but isn't that like winning at the special olymipcs?

 

[MLBWINGBORN]

Flopgut.

You have no idea what our people are like.

You have no idea what our business plans are.

And you clearly have no idea what you are talking about when it comes to relationships among the employee groups.

I see a trend here..

Clearly the People Department got it right..

 

[Flopgut]

Ivauir: I haven't been to UIO since I was an FE and those were all short overnights. We have long ones now but I haven't done any. I'll have to start doing them soon so I'll look for those places. I'm going to Panama a lot these days. Thanks for the nice comments on CAL.

Folks, I like airlines, airplanes and the people who operate them. I think we'll look back on this as a time in history when we almost lost legacy carriers. Thats if we do get through it! Things don't have to be going well at my own airline for me to be concerned. To that end, if things were going bad at SWA right now I'd be concerned, be sticking up for you, and throwing jabs at whoever was doing an endzone dance. I didn't say squat when Midway happened; That was a heartbreaker.

The SWA dialog on this board helps me gain insight into how your successful. (I'm trying to apply it believe it or not) The more nutty and oddball zingers I fire at you are done in large part so you can learn from an unsuccessful thought process. (not that CAL is unsuccessful, we are lucky its going OK, but the currently unsuccessful legacy model) The smack I fire at you is, in fact, tough luv. SWA is pretty well insulated from all the dreadful things going on today, but that may change someday. You won't be the least bit ready for it if you ignore possible flaws or think your immune.

The other part of why I do disagree with you is our operations and our goals do conflict. But that is completely normal.

You all have a good weekend and a good holiday.

 

[Mugs]

Enjoy the weekend...no kidding. I think most of your SWA buds would be a bit bewildered by how much time you guys waste promoting and then defending your airline on this forum. Those of you guys that just can't get enough of this same format month after month, year after year......there must be something wrong with y'all.

 

[Spectre]

Although what looks like a simple arithmetic problem, is much more complex in the business world. You need to take into affect the different taxes and profit sharing issues that affect the solution to the net profit/loss without hedges scenario. This has been a explained several times on this board so in the interest of repeating this once again how this works to the sheer boredom of all that have read this before I will forgo the details. The bottom line is that SWA would have posted a profit the past couple of years without them. Of course not the same level of profit, but a profit never the less.

As what was predicted by some on this board, the pricing power of SWA is such that they raise their prices to the expiration of the hedges. If you were to take the history of SWA's prices, account for inflationary variables, you will find that the average price of tickets is around 80% of what they normally would be. That was before the price of oil began to reach record levels.

This is a volatile industry and things can change quickly as we all unfortunately are painfully aware of. But since 9/11, SWA has become a stronger company in a depressed industry. Something extraordinary in any business. To say that the future is bleak for SWA because of the fuel hedging in place, do not understand the fundamental strengths of SWA. Its productivity of its employees and the reputation from its customers. Both untouchable for any "legacy" carrier.

Sure, when your fuel hedges run out, you can raise ticket prices. But do you really have that kind of pricing power? Heck, 50% or your passengers will just go back and ride on a Greyhound bus if you raise your ticket prices!

 

[Dash Power]

Sure, when your fuel hedges run out, you can raise ticket prices. But do you really have that kind of pricing power? Yes.

Heck, 50% or your passengers will just go back and ride on a Greyhound bus if you raise your ticket prices! Our passengers are really no different than yours.

 

[ivauir]

I didn't say squat when Midway happened;

I noticed, and I appreciate it. Have a great weekend.

 

[Hpilot]

Bridge for sale-waterfront

If you guys think you're going to be able to hold onto that pay without management improving productivity(no quality of life) then I've got a great bridge to sell you. No, I've never interviewed at Southwest and maybe one day I will. I hope you guy's can keep what you've got, but I'd be surprised if they weren't already trying to reduce your days off.

 

[Flopgut]

Flopgut.

You have no idea what our people are like.

You have no idea what our business plans are.

And you clearly have no idea what you are talking about when it comes to relationships among the employee groups.

I see a trend here..

Clearly the People Department got it right..

I have never applied to SWA. My somewhat negative critique of SWA is not the result of suffering the indignity of not being hired.

That being said, I'm sure they wouldn't hire me. And it probably would be some character flaw. The one thing I think I would do good on in the interview they don't check! So your not wrong conceptually.

If they did hire me, they would probably fire me. Probably make it some big season finally on the TV show. Personally, I would want to pimp slap any jackleg that was complaining who paid a fare under $100. It would be a great episode though. I would be be berrating some dork customer at the gate, the producers could have Herb come in and rip my wings off and crush a cigarette out on my face! Possible Emmy material.

 

[ivauir]

If you guys think you're going to be able to hold onto that pay without management improving productivity(no quality of life) then I've got a great bridge to sell you. Look a little closer at our financials. No, I've never interviewed at Southwest and maybe one day I will. I hope you guy's can keep what you've got, but I'd be surprised if they weren't already trying to reduce your days off.

The company has asked for (and I think mostly gotten) voluntary productivity increases. i.e. they said, "hey guys it would help out if picked up another couple of days" (for more pay). The company and the union have been discussing further productivity enhancements (out side of section 6), and we have been running several tests.

The bottom line is GK (and the financials) all indicate that our pay is safe. The weakness in our system it is based on greed. So much of our flying is discretionary that a pay cut could stifle productivity.

 

[Falcon Jet 1]

I really dont think that they can write our lines much more productive, may 06 average line was 83.2+/-. that was before vacation and reserve lines of course.

 

[joevollers]

Time to stop hoping for SWA's demise Y'all.....

On average.. they are the highest paid in the industry... their 2nd, 3rd year pays is hands down better than any other pax carrier that's hiring..

It's awfully nice for our union leaders to be able to go to mgmnt during negotiations and say.. " SWA pays their pilots X$ so figure out how we're gonna get ours"

All you fools rooting for swa's demise are rooting for your own!

 

[walkthasky]

interesting how everyone is sh*ting on the one airline that is doing well right now.