Bob, don't forget about WN's motivated workforce, easy-to-understand fare structure, clever management and wonderful advertising.
Yeah, they earn their good wages. Instead of responding 'that is not my job...'
Hey, how could the union leaders be so smart at WN and so stupid at other airlines?
Similar to how GM is profitable everywhere else in the world EXCEPT in the United States.
Tell me what's the difference?
The difference is management.
Tell us "where are the differences in contract language that makes the SWA worker so much better".
The facts may disturb you.
AA does their maintenance in house, they do it because it saves them money. AA has 6 different types of aircraft, that drives up costs so perhaps thats why AAs costs are higher than SWA but AAs costs are lower than other airlines that have multiple fleet types.
Per worker, despite the fact that AA subs out less than most carriers-thus driving up its headcount, AA workers generate more revenue than SWA workers, over $26,000 a year more and currently AA pays their mechanics close to $20,000 a year less.
AA RASM (2007)was 13cents a mile
SWA RASM was 9 cents a mile
If you were to compare AAs Line maint staffing to SWAs you may be shocked, the ratios are pretty close, especially when you factor in multiple fleet types and ETOPS operations at AA.
SWA has 520 737s, AA has 6 different fleet types
AA only has 20% more aircraft than SWA but AA Mechanics maintain 40% more tires. One Main gear on the 777 has as many tires and more brakes than a 737. Obviously that means more maintenance.
Bigger more complex aircraft require more maintenance. Multiple fleet types drive up costs because you have to buy parts, tooling,equipement and provide training for each type, You also have less flexibility with crews because of FAA regs. . SWA only has to equip for one type of aircraft and not only that but they can afford to buy less parts because they have the most common aircraft out there, that means its easy for them to borrow parts.
The fact is that SWA has very low costs despite the fact they pay very well, the low costs are the result of effecincies in the structure and operation of the enterprise, and a motivated well paid workforec is what keeps it effecient and profitable. Their revenues are very low as well but they still make a profit.When AA realizes that motivation is more effectively gain by good pay than bad threats then maybe they will shows profits as consistantly as SWA.