Originally Posted by
hammer189
1) If LUV has a higher cost structure than us, how do they turn a profit when we don't? (I've been told by managers at Delta that SW has a higher cost structure. Also, its well known that they pay thier people more across the board.ie_Pilots, FA, Rampers) They have lower yields per ticket in revenue, don't collect a premium on First Class seats, and miss out on big money from bags. I'd like to see a list compiled of why they make money when we don't. And not something like: They don't have RJs or our VPs are paid more or they don't have Alpa. Something based purely in financial terms.
Somewhere is published the number of employees per airplane for all airlines.
SWA was around 36 and Delta was around 79 people per aircraft.
This is a huge reason that they have a cost advantage over us.
These numbers are old and from memory.
?
Its amazing that they have half the employees per airplane,yet manage to move their metal just as good or better than Delta and get higher scores for customer service.
In summary:
1) Fewer people to accomplish the same work. In every department.
2) Lower MX costs due to fleet simplification.
3) Lower training costs due to fleet simplification.
4) Lower Executive pay
5) Higher Daily utilization per plane.
6) Higher revenue by selling 80%+ tickets on thier own website.
Anything else?