After the AMR-LCC merger, it will be LUV's turn in bankruptcy court. This managements inability to control wages while at the same time inability to recognize revenue opportunity that every other airline enjoys, namely bag fees, is inexcusable. Southwest is no longer the little airline that could. With its stock price spiraling down, LUV is in deep trouble. Soft spoken home-boy Gary Kelly had better toughen up and start acting like a manager.
>>>>>>>>LUV will be losing market share, when the AMR/LCC merger is done, it will just get worse. Int'l, first class, big planes, business passengers is something LUV does not have. AMR/LCC combined will have revenues of $38 bil, how will LUV compete with their higher cost>>>>>
First of all SWA has lower costs than either one of those carriers right now. And Parker is promising 5% immediate pay raises and Delta parity down the road. How does that equate to a SWA cost disadvantage? It doesn't. And what does AMR labor do when Parker says " I'm sorry, I just can't pay you that". It's worked for 7 years with AWA/US, but don't count on AMR buying it. Don't count on AMR labor putting up with another 7 years of Parker letting his labor groups fight each other while he sits back enjoying lower labor costs as a result, either.
Second, any merger with AMR would involve big cuts in workforce and routes. That's diminishing market share, not expanding it. SWA will be ready to exploit that.
Third, and just out of curiousity, 1/2 of LCCs fleet is regional aircraft and AMR has AE to handle. How is that huge regional acft issue going to be resolved? Massive layoffs? Playing one regional carrier against another?
Many years ago Bob Crandall, a good friend of Herb Kelleher's, was asked what his biggest mistake was running AMR. He replied , basically, underestimating SWA. Feel free to make that same mistake.
High costs and productivity per employee are related. Do you have any figures on the productivity per employee at SWA compared to other airlines? That would be important to share with us. Thanks
>>>>>After the AMR-LCC merger, it will be LUV's turn in bankruptcy court. This managements inability to control wages while at the same time inability to recognize revenue opportunity that every other airline enjoys>>>>>
If you bothered to read the SEC reports you'd see this is not true. Go ahead, test your reading comprehension.
Also, an AMR-LCC merger would be an epic cluster-FK, so I wouldn't get to excited about that either.
<LUV has Highest Costs>
No it doesn't, my dopey friend.
Pal, let me tell you something. My brother is a former SWA pilot and he sat in a POW camp for three years in a little place called Nam. He later became a SW pilot before he retired. I know a lot of these guys. SWA pilots are not a bunch of SCABS! Where you ever came up with that crap is just that. CRAP!!!! That term you used here would fit the description of some that crossed the line at CAL back in the eighties and at Eastern during the reign of terror by Frank Lorenzo. So before you start making condescending statements here about something you obviously know nothing about, get your facts straight.