diogenes-
You asked why US's CASM is so much higher than WN's. Well, labor/productivity/work rules is an important part of it. Take December, 2002. WN had roughly 35,000 employees while US had roughly 33,000 employees. WN generated 5.899 billion ASM's in December, compared to 4.150 billion ASM's for U. That works out to roughly 168,500 ASM's per employee at WN, versus 125,800 ASM's per employee at US (or nearly 34% higher productivity). Take aircraft productivity; WN had 375 mainline jets while US had 279 mainline jets. WN generated 15.7 million ASM's per jet while US generated 14.9 million ASM's per jet -- even though on average WN's jets are smaller and their stage lengths are shorter (and they fly no red-eyes).
Some of it is work rules; some of it is due to the hub system which causes inefficient use of labor. A lot of it results from the fact that the vast majority of US's employees are topped out on the pay scales, while WN's are not.
You asked why US's CASM is so much higher than WN's. Well, labor/productivity/work rules is an important part of it. Take December, 2002. WN had roughly 35,000 employees while US had roughly 33,000 employees. WN generated 5.899 billion ASM's in December, compared to 4.150 billion ASM's for U. That works out to roughly 168,500 ASM's per employee at WN, versus 125,800 ASM's per employee at US (or nearly 34% higher productivity). Take aircraft productivity; WN had 375 mainline jets while US had 279 mainline jets. WN generated 15.7 million ASM's per jet while US generated 14.9 million ASM's per jet -- even though on average WN's jets are smaller and their stage lengths are shorter (and they fly no red-eyes).
Some of it is work rules; some of it is due to the hub system which causes inefficient use of labor. A lot of it results from the fact that the vast majority of US's employees are topped out on the pay scales, while WN's are not.