Quote:
Originally Posted by skybolt
Mike, If SWA is a cancer, I wanna catch it. How can you look negatively upon the best paid narrow body pilots and the company that pays them that rate? I too, am a MD80 Captain, and I don't make near the wage of a SWA Captain. I say again, If SWA is a cancer, I hope I catch it.
skybolt
SkyDolt, er, sorry, Skybolt, you wonder how I can look negatively upon the best paid...WELL THEY ARE NOW! Ahem, excuse me for yelling.
Yeah, they are the highest paid but look how far the legacys have fallen. SW is the successful upstart that drove salaries down. OK OK I know, it's not just pay. The equation is complex. The legacy carriers can not cut their fixed costs overnight (or even in years). SW has an advantage in being a growing company. You want to lower your seat costs? Grow. More seats = lower costs per seat. You want to increase your costs per seat? Shrink. Shrinking to profitability has rarely worked and is very difficult. Labor is the easiest to cut, painful yes but easy.
SW will eventually be the legacy carrier and will have to compete with some snot nose upstart like Virgin. They will have to cut costs. Guess who will be the first to take the cuts? It may already be happening.
Just so I don't criticize without offering a solution. Re-regulation is some form is the answer. An airline should not be able to price their product below costs. (with lots of exceptions bla bla bla....)