SWA Won't Need Furloughs This Year
#51
Gets Weekends Off
Joined APC: Oct 2006
Posts: 2,846
Even if an effective vaccine is developed by early 2021, that is not nearly the end of this air travel downturn. That vaccine has to be manufactured for 7 Billion people, distributed, and injected into 7 Billion people. Then when that monumental task is complete, we still have the economic fallout from the largest recession in nearly 90 years.
Summer 2021 and Summer 2022 total passenger numbers will be below Summer 2019, and likely at lower revenue as well. The question becomes how much lower, and whether a combination of retirements and the VSP and ExTO programs cut costs enough to avoid furloughs.
I applaud Southwest management for their aggressive VSP and ExTO programs. I believe Southwest was in a unique position to do this on such a large scale compared to the legacy carriers due to its business model of not having much international exposure, having no large wide bodies that are fairly useless right now, and the fact that their primary customer base (leisure travelers) are traveling at higher percentages than business travelers.
Summer 2021 and Summer 2022 total passenger numbers will be below Summer 2019, and likely at lower revenue as well. The question becomes how much lower, and whether a combination of retirements and the VSP and ExTO programs cut costs enough to avoid furloughs.
I applaud Southwest management for their aggressive VSP and ExTO programs. I believe Southwest was in a unique position to do this on such a large scale compared to the legacy carriers due to its business model of not having much international exposure, having no large wide bodies that are fairly useless right now, and the fact that their primary customer base (leisure travelers) are traveling at higher percentages than business travelers.
Read a article that said the US Govt prepaid
for enough vaccines for everyone in the US to get one for free when available. I highly doubt air travel in the US will be depressed because Africa/Asia still has cases...we can keep grave bans in effect for those places. It won’t stop people from going to Disney World.
#52
Gets Weekends Off
Joined APC: Jun 2017
Posts: 659
You don’t need to inject 7B for a vaccine to be effective. It’ll burn out long before that when it can’t find anyone to infect. Unless it’s like the flu and comes back every year, which we don’t know yet.
Read a article that said the US Govt prepaid
for enough vaccines for everyone in the US to get one for free when available. I highly doubt air travel in the US will be depressed because Africa/Asia still has cases...we can keep grave bans in effect for those places. It won’t stop people from going to Disney World.
Read a article that said the US Govt prepaid
for enough vaccines for everyone in the US to get one for free when available. I highly doubt air travel in the US will be depressed because Africa/Asia still has cases...we can keep grave bans in effect for those places. It won’t stop people from going to Disney World.
#55
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Joined APC: Jul 2013
Position: 175 CA
Posts: 1,544
#56
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Joined APC: Jun 2010
Position: DOWNGRADE COMPLETE: Thanks Gary. Thanks SWAPA.
Posts: 6,613
#57
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#59
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Joined APC: Jun 2010
Position: DOWNGRADE COMPLETE: Thanks Gary. Thanks SWAPA.
Posts: 6,613
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