SWA plan for 15% ROIC

[redflyer65]

The reason the 717 isn't profitable in the SWA model is cost structure.
SWA has a high cost structure, ramp, customer service,ops agent are the highest paid in the industry. It is putting tremendous pressure on profit. The ability to have one agent serve as customer service, ops agent an if needed carry a bag downstairs, for 8$ an hour was a part of our success. The ability to out source ramp in small cities was another way to be competitive in certain markets. Soon SWA will have to address paying unskilled labor more than industry standard. The 717 competed against SWA in a lot of markets successfully, it's not the airplane it is the structure it has to fit in. Example: I flew in to CMH the other day, got off the plane walked down the corridor and on the way back I stopped at the customer service and asked the two agents ( who were doing nothing) about my paperwork they told me I had to see the ops agent. You would never see three agents at one gate at AT. Yes I know SWA makes money almost every quarter, but it seems to be less and less. On the invester call they cite bag fees from AT as the reason for a large portion of the profit.

Wait, so you're proud that everyone at Airtran worked for below industry wages and are touting that as a great thing? So in your world, you guys were eeking out a profit because of horrible wages? Interesting.

Maybe we should just cut everyone's pay at Southwest by 50% so we can do as well.

 

[fletch717]

What I'm saying is SWA pays unskilled labor way above industry standard. SWA must address this if they want to stay profitable. SWA is the car industry of the 60's and 70's and delta and the rest are Japan. They are now doing it just as good and cheaper. It may be a noble thought to want your fellow employee groups to make far above industry wages but it will be your downfall. You won't be able to compete with the big D and others.

Since I am about to start airline 4 I don't care if they import illegals and pay them 2 dollars a day as long as I get paid. Sorry I used up all my team spirit a few years ago. I'm here to get paid, not go to round ups and hang out in the hotel bar.

 

[maxblast72]

The B717 isn't leaving the Southwest fleet because of unskilled labor pay at Southwest. It is due to the fact that the B717 and B737-700 have the same trip burn and crew cost while getting 26 extra seats of revenue. Why add the complexities of a second fleet type for an airplane (B717) that can't do anything the B737 can't do?

With a short wing and durable fuselage/landing gear, the B717 (DC-9) is great aircraft for 200-400 mile legs to feed a hub. The B717 is not a great point to point airplane for 500-800 mile stage lengths (especially when compared with the B737-700 or -800). Which mission do you think Delta is going to use the BRJ for?

 

[scoreboardII]

Sorry scoreboard every SWA station I go to has twice as many bodies as an AT station. As a matter of fact, right after the sept 2010 announcement SWA peeps were in ATL watching how 1 agent per gate at AT does everything from putting the jet on, printing paper work, and boarding in 30 min or less. Too many people making too high wages. SWA has to address this to be successful in the future. when they do there will be trouble that's what concerns me. The next 3 to 6 years will be a defining time in SWA history.

Sorry fletch, but every SwA base you go through is a combined AT /SwA base, do you think for just one second that maybe there is some training and overlap going on as the transition occurs?

Dude, a normal SwA base is more efficiently manned than anything AT ever did.

 

[scoreboardII]

What I'm saying is SWA pays unskilled labor way above industry standard. SWA must address this if they want to stay profitable. SWA is the car industry of the 60's and 70's and delta and the rest are Japan. They are now doing it just as good and cheaper. It may be a noble thought to want your fellow employee groups to make far above industry wages but it will be your downfall. You won't be able to compete with the big D and others.

Since I am about to start airline 4 I don't care if they import illegals and pay them 2 dollars a day as long as I get paid. Sorry I used up all my team spirit a few years ago. I'm here to get paid, not go to round ups and hang out in the hotel bar.

True colors are showing. Let me guess, you're all in for buying the lowest cost whatever and America be damned as well... Hate to bring this up to you, but you're replaceable from a pool of third world workers just like the Ops agents. Careful what you wish for, amigo.

 

[madjack]

Happiest FAT employee I've met was a former contract ops agent in SFO now full time SWA ops agent...obtw she said the critter crews uses to treat the hep contract help like crap...nice

 

[SWA/FO]

I would guess that at least 50 percent of AT pilots are more qualified than you are today junior.

Doubt it Old Man....

 

[HowardBorden]

What I'm saying is SWA pays unskilled labor way above industry standard. SWA must address this if they want to stay profitable. SWA is the car industry of the 60's and 70's and delta and the rest are Japan. They are now doing it just as good and cheaper.

You just don't get it. They do it cheaper, but in no way just as good. SWA does not outsource at all (some heavy maintenance excluded) because they want to control the product and customer experience. They are willing to pay more in order to get and keep qualified employees willing to go above and beyond the call of duty to keep the customer experience a positive one. They are willing to pay more because they know that is money well spent. SWA is famous for their customer service and that service keeps customers coming back.

 

[carl p]

I don't know what is more ridiculous...these SWA/AT we were better than you threads, or the fact that I keep coming back reading them hoping things will change.

 

[waveflyer]

I don't get my job security from anything other than our people at every position do the job better than anyone else-
(Airline #6- )
What scoreboard said-
Now fat has crept in- and we need to trim that- it will not look like how united and delta trimmed their fat- something for nothing pisses me off whether its a healthy bum collecting welfare, a ramper abusing sick time, or a swa pilot who thinks he's entitled to time and a half every time he shows up- so we'll address it like adults who give a damn about each other- not through BK manipulations and beat downs AA style