Swa Pay Cuts A Coming?

[local 12 proud]

"there is nothing new under the sun"

 

[speedbird86]

So what if SWA goes into high cost markets. Even if they lose money in these markets it's still a win win deal for them. Think of the damage they are doing to the legacies. Fares come down but on the otherhand cost go up.

No big deal. Just go in, inflict as much damage as possible to US/UA for a year or so and then just pull out. Walah, the seed is planted.

 

[PlanetKyle]

actually imo, if the day came where it looked like we would lose money for the year, i think you'd be impressed by the number of people who would take pay cuts. there would be some griping by some, but most the people i talk to are lifers, and realize it's in our long term interest to keep this boat afloat. i've had several conversations in the last month with coworkers about how we could be in UA or US's shoes ten years from now. i do not think that situation is imminent, we are cutting costs everyway we can right now. in fact, the current environment reminds me of the early 90's when so many carriers were struggling and amassing huge debt, then when the economy firmed up, we grew like crazy. still, i do hope for the best for all you guys at the other brands - my heart goes out to you and all that you've had to endure. hopefully it will all be worth it and we can all make money.

PlanetKyle

 

[SWAFA30]

actually imo, if the day came where it looked like we would lose money for the year, i think you'd be impressed by the number of people who would take pay cuts. there would be some griping by some, but most the people i talk to are lifers, and realize it's in our long term interest to keep this boat afloat.

[post="266511"][/post]​

Work for less so The Griswalds can fly to WallyWorld for less than it costs to buy a good meal in a decent restaurant? No Thanks. At some point, someone has to stand up to the fact that being asked to provide a product for less than it costs to produce it is lunacy. It's been a good run but if the day comes that the company comes begging...I'm outta here.

 

[FWAAA]

Work for less so The Griswalds can fly to WallyWorld for less than it costs to buy a good meal in a decent restaurant? No Thanks. At some point, someone has to stand up to the fact that being asked to provide a product for less than it costs to produce it is lunacy. It's been a good run but if the day comes that the company comes begging...I'm outta here.

[post="266521"][/post]​

If UAL and USAir would just shut down already, WN and other airlines won't have to keep coming back to the employees for concessions.

But if those bankrupt airlines continue to depress domestic yields, every airline is gonna have to continue to slash costs, and pay cuts for everyone will be inevitable.

 

[ClueByFour]

I know that layoffs are being considered at SWA. Paycuts wouldn't surprise me.

[post="266458"][/post]​

Source?

 

[wnbubbleboy]

I know that layoffs are being considered at SWA. Paycuts wouldn't surprise me.

[post="266458"][/post]​

After 9-11 layoffs were considered out of the question. Nothing can be worse than that. I smell a fish with this whole tread. Cast until you get a bite.

 

[PlanetKyle]

Work for less so The Griswalds can fly to WallyWorld for less than it costs to buy a good meal in a decent restaurant? No Thanks. At some point, someone has to stand up to the fact that being asked to provide a product for less than it costs to produce it is lunacy. It's been a good run but if the day comes that the company comes begging...I'm outta here.

[post="266521"][/post]​

sure you don't work for US or UA? that's the kind of thing i read in their posts.

like i said, i'm a lifer. if long term gain requires short term pain, so be it.

PK

 

[AAmech]

Unlike the legacies, WN has the ability to keep its unit costs manageable by growing its operation. Also, notice how WN's route network increasingly includes large, higher-yield markets (such as PHL).

[post="266356"][/post]​

I think the whole paycuts thing is really insane. Waaaaaay premature to even think about. But after the numbers that came out of WN today the "grow your way out" plan may have to be put on hold. The WN LF's just fell of a cliff!!!

 

[KCFlyer]

I think the whole paycuts thing is really insane. Waaaaaay premature to even think about. But after the numbers that came out of WN today the "grow your way out" plan may have to be put on hold. The WN LF's just fell of a cliff!!!

[post="266758"][/post]​

AAMech - it must have been a pretty small cliff...have you ever noticed LUV's historical load factors?

 

[WNjetdoc]

From an upcoming aritcle
Southwest Airlines Article

>>>>>>>>Kelly gave a 15-minute speech, recapping the airline's financial performance and its plan for the rest of the year. Toward the end he told the crowd, "The Southwest brand is under attack. These next years are going to be some of the hardest the airline has ever had. Be prepared for some sacrifices." The crowd fell still. In the silence, a woman wearing a bright-blue T-shirt with I'M SWA on the back leaned toward the man next to her and whispered: "I'm going to need a drink after that speech." >>>>>>>>

[post="266355"][/post]​

Man that sucks, I can't believe we are going to have to take paycuts, MAN AM I PISSED OFF!! Im glad you have insider info dude, Im getting my resume updated as we speak, Im not going to take this crap lying down!!! :down: :angry:

BTW, does Usair need any AMTs? .

Someone also posted on this thread that SWA is "considering" layoffs....man do you guys crack me up. As someone else suggested, perhaps you guys should worry about your own airline and not worry about our airline. Thanks for the concern, however shallow it may be.

 

[SWAFA30]

sure you don't work for US or UA?

Positive.

that's the kind of thing i read in their posts.

In most cases, there is a valid reason behind their hurt and anger, time and again they were told that their sacrifices would "save the company"...yet time and again the company never manages to get saved and the sacrifices just keep coming.

like i said, i'm a lifer. if long term gain requires short term pain, so be it.

PK

[post="266733"][/post]​

The problem with pay cuts is that they very rarely end up being short term.

 

[FWAAA]

I think the whole paycuts thing is really insane. Waaaaaay premature to even think about. But after the numbers that came out of WN today the "grow your way out" plan may have to be put on hold. The WN LF's just fell of a cliff!!!

[post="266758"][/post]​

I agree with KCFlyer. WN has always priced its seats to fill about 2/3 of the airplanes, on average. That just means it isn't chasing the last few bottom fares the way all the other airlines are (including B6). Its load factor fell, but that isn't the disaster it would be at a "desperate for cash" legacy airline.

I'm a big AA fan, and I'm a big WN fan. Both have co-existed for a long time, and both can continue to co-exist. WN's fuel hedges have permitted it the luxury of picking and choosing its customers a little better than any other airline. The "desperate for cash" bankrupt carriers keep lowering fares to attract record-high load factors, hoping to generate cash any way they can. That harms the yields of the nonbankrupt legacy airlines, pushing them closer to bankruptcy.

Anyone else notice that AMR outperformed WN in Q1 in one key measure? AMR covered a higher proportion of its expenses with fare revenue than did WN, by a significant margin. The fuel hedges, of course, helped WN outperform everyone else profit-wise. But AMR's yields and RASM via its fares are currently healthier than at WN.

Industry-wide domestic overcapacity is hurting even WN. Reduction of that domestic overcapacity is long overdue.

 

[luvn737s]

I agree with KCFlyer. WN has always priced its seats to fill about 2/3 of the airplanes, on average.

[post="266866"][/post]​

WHAT!!!! They come into a market and charge 1/3 of the previous fare and you only get a 65% LF??? There must be fewer and fewer repeat customers if load factors don't climb dramatically when you only charge $39. I thought WN priced it's seats to stimulate a market. Wasn't that the whole premise behind the so-called "Southwest effect"?

 

[luvn737s]

Face it. Gary Kelly ain't Herb. This guy is throwing the conservative growth plan out the window, much to the peril of the employees and shareholders.

As for the full-service airlines' employees and their demands, I think they will be patient and wait for the engine plugs to be put in the last WN jet in the desert. Only then will they be in a position to begin reaping the rewards of their sacrifice.