Originally posted by Holden McGroin
Poor management? Okay I guess you could call it that, but legacy carriers have inherited a poor business plan and changing from that plan to the new plan is going to cause some pain.
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Glad you agree; "legacy" carriers do have pooor business plans and it's OBVIOUS the managers are responsible for that plan.
SW only flies 737's, last I checked. All flight crews can fly any equipment, all maintenance crews can work on all equipment, supply chain for spare parts is streamlined. Much less cost that a dozen different model a/c.
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Yep. Who makes those decisions? Management. I know for a FACT that our union offered contract incentives to simplify the fleet back in the late '80's and '90's. We were told to do our job and they'd do theirs. The result was they bought MORE different types and we ended up with 13 different aircraft in the fleet.
SW hedged on its fuel costs a few years ago,and spikes in fuel cost do not effect SW very much. (at least until the fuel contract is up)
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That's one thing they learned from DAL. DAL was the first to significantly hedge; even formed a subsidiary, Epsilon, to do so. Unfortunately, the later management let that go to heck too.
If a strike is called, everyone involved will lose money. If the status quo is maintained the airline will fold and everyone will lose money.
True. However, as has been noted, the pilot's have already agreed to take another 14% cut along with the previous 34% which would have them working at nearly 50% below previous wages and at rates that are significantly lower than any major carrier at this time.
Common sense would dictate that the company and the union compromise over the remaining 4% in dispute and go for 2%.
I think that is what will happen.
Then, if the airline can't make it with pilots working for 52% of their previous wage and ranking at the bottom of the majors in pay.... it'll once again be on the the shoulders of the B-school boys.
