Originally Posted by
LifetimeCFI
Depends on your perspective. QoL should be our #1. Try to land rates within 15% of legacy.. Is that feasible? I don't know.
You and I have been back and forth about this. The current contract had QoL as the #1 priority. Howd that work out 6-9 years later?
Again, ULCC has MANY variations. Southwest was once one - the laughing stock of the industry. Smaller planes flying regional routes. Cheaper labor. They even had to deal w/ a law that prevented intranational flying (from Texas) for a while. They obviously aren't that anymore. Do you think the owner/CEO wanted to stay like that or now wish they could go back?
It IS possible to have customer service AND charge less. What does it take? Well, cheaper CASM to start (we have that). It takes a slow, steady growth process emphasizing brand loyalty thru a robust rewards and credit card program (we're a little late but are trying this). It also involves an emphasis from the top on taking care of the customer through employees who feel takin care of by the company (we don't have that). This can only come from an INVESTMENT into the employee. Sooner or later, you gotta SPEND money with the hopes of making more.
BUSINESS MODELS are choices and MUST change/adapt/become better to remain profitable. Like Kirby said, the existing ULCC is dead. He's right. The future is death if we stay the way we are. As already mentioned, the new ULCC model needs to change and it MUST incorporate market labor costs. Anything else won't work. Back in the day, SW pilots were willing to work for less to become part of something special that would pay out later. NO ONE is gonna work for less forever and be OK with it.