Our labor rates are now, far and away, the highest in the industry. Through bankruptcy, very large New Airlines have emerged with lower rates than us and better productivity. Next to fuel, labor is our highest expenditure. We cant have lower overall operating costs if our labor costs aren’t lower. We cant have lower labor costs if we arent more productive. The good news is that we have a lot of opportunities to improve our productivity, eliminate waste, and preserve our pay rates and benefits for the foreseeable future. Its crucial that we take advantage of those opportunities.
The imperative I spoke about nearly a decade ago has been fulfilled by our remaining, formerly “Legacy,” competitors. The imperative is now squarely upon Southwest. I know you all understand the evidence hundreds of airlines perished since deregulation. No 1989 major airline has survived without bankruptcy except Southwest. We are the maverick. We are different. Thats how we have prevailed with a Warrior Spirit, a “Never Give In” resolve, and a burning desire to be the very best. The sloth-like industry you remember competing against is now officially dead and buried. We fought them, and we won.
Now, the enemy is our own cost creep, our own legacy-like productivity, and our own inefficiencies. Fighting this cost enemy is an imperative to remain the Maverick. We will fight, and we will remain the Maverick.
