On a Southwest jumpseat the other day, word from Dallas (LUV) was that Frontier is on a cash basis for fuel and that Southwest is going from 2 to 9 gates in Denver asap.

Just the messenger of a "jumpseat rumor"...fwiw.

FF

Blood in the water...
 

Hey Fli,

They smell the blood in the water......... SWA Management that is... If Herb were still around do you think that they would be pursuing the same predatory strategy? What do you all think? I mean it's not like there is a vacuum of service out of DEN..........

Just wondering,

B727DRVR

In a word, yes. They pushed USAir out of BWI, ran USAir out of Calif, invaded Florida, all under Herb's watch, which is how you go from a 900 pilot airline in ~1995 to 5,500 today.

I have to agree with JetPiedmont.

I have ALWAYS been treated great by every SWA employee when jumpseating, so it's not personal. But Southwest has redefined the industry to reduce fares which have caused others to reduce pay of their employees to compete and Southwest does look for the weak and goes for the kill.

Fortunately or unfortunately, Southwest is luved by many local communities which helps them move into a market through incentives such as suspended landing fees, reduced rent, and shared monies for local marketing.

I don't begrudge the employees of Southwest, again, they are the friendliest in the industry, but I think their well-defined product has lead to a transformation of a once elite industry into an industry of mass transportation whereas we, the pilots are paid like mass-transit workers.

The blood is in the water in Denver and I think Southwest is licking its' chops.

Just one man's opinion, your miles may vary,

FF

They are the highest paid airbus pilots in the country. You obviously have no clue.

El Guapo,

Agreed, the F9 pilots were near if not on top of the A320 family payscale. With the 10% paycut they nestle themselves back near the average of the other carriers that operate similar equipment but not at the top anymore.

Good observation,

FF

Thanks for the kind words. I have to ask you about this quote:
Can you give me an examples of suspended landing fees, reduced rent, or "shared monies for local marketing?" I am not aware of any of those incentives, but then I've only been at SWA for 7 years. In particular, I can't remember any stories about Denver granting us incentives for being there. Thanks in advance, I'm sure that you wouldn't say something like that without the info to back it up.

this isnt directly related to suspended landing fees, rent etc, but remember the Sea-Tac fiasco where SWA agreed to paying their share into a $4 billion airport renovation, then decided they wanted to move most of their flights to Boeing Field and not pay up? imo that was a pretty messed up attempt to stick the bill to everyone else...

hey f9 guys, what is this rumor around den saying June 9-10 is when everyone will find out what is going to happen with the company?

June 9th is when F9 has its 1110 filing. My understanding of the history that led to the current Ch 11 process goes thus:
1. Lorenzo files Ch 11, and stops paying the leasing companies. Leasing companies say "fine, we'll take back out planes". Lorenzo says "you can't do that - I have protection".
2. Lorenzo voids employee contracts, says "you're all fired, but we'll hire you back at 1/2 pay.
3. In response, new laws are passed, allowing vendor/lease payments to be halted with Ch 11 filing, but requiring that an 1110 be filed within 60 days. At that point, the company needs to have renegotiated the payments and make back payments with vendors, or face repossession of assets.
4. New laws require companies to negotiate with employees, and allows the company to file an 1113 motion if an agreement cannot be reached with employees. In the 1113 filing, the company can ask the judge to impose cuts on the employees, or void the contract altogether. To the best of my knowledge, an 1113 motion has never gone well for the employee group in question.