It is basicaly everything we feared it would be. In a nutshell, look for layoffs in all groups. He particulary pointed out Res. He stated with the simpler fare structure we will go to and the enhanced web site, there would not be a need for all of them.
We are a 10 cent airline and he wants to get to a 6 cent airline. To close the 4 cent gap. 2 cents will come from workforce, givebacks, layoffs and the other 2 cents from procedural, fare structure, etc. They are considering if First Class is even viable anymore.
For PIT he said time is running out. We pay $10 per pax to xfer in PIT as opposed to $2 in CLT. PIT has to work something out about cutting their cost like we at US have to do the same.
In PHL Southwest is there for ONE reason he says. To KILL us. It not as simple to drop the average fare down to their price because we would lose money. Matching Southwest would mean we PAY each pax $15 to fly us after the taxes are taken into affect.
