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 Difficult co-worker. Very insulting of others and annoying, but not in front of the boss. What to do? |
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 Are HSBC likely to charge me for going overdrawn? |
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loving couple | Why hasn't Southwest Airlines gone bankrupt like other airlines? |
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zkay69
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Southwest Airlines has one leg up on all the other airlines.
They have a cap on fuel cost, they are still paying what they were paying for fuel 5 years ago. But that is coming to an end this year and we will have to see how well they fair. But this is only one HUGH thing that played a role in their success. The other thing was making the employees business owners. This was the smartest thing since sliced bread. Of course there are other factors but I have to say that this was the two biggest things in their arsenal. |
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Frank Castle
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Futures. |
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BaFfler
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They have no debt. |
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dcgirl
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One of the really big differences is in the employee benefits, especially long-term medical insurance and pensions. These costs are extremely high--- for the US Airways Pilots alone, it was a $3.7 BILLION debt and that's just the pilots, not the cabin crew, ground crews, mechanics... if you start out even at $0.00 profit and $0.00 debt, you'll do a lot better than your competitor who is already well over $3.7 Billion in debt. This is why so many airlines have "dumped" their pensions in bankruptcy court but still been able to operate with few other changes (yes, there are usually pay cuts but they're not selling off half their planes!). Southwest does not pay pensions; they do contribute to employee 401(k) but 401(k) plans in general have replaced traditional pensions in all industries because it is more expensive in the long run for an employer to carry a pension. And Southwest does not carry insurance for employees once they no longer work for the airline but many of the legacy airlines do (or did but dropped that as part of their bankruptcies). This represents a huge sum of money and Southwest is doing a lot better because they have never had to pay for that. |
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gfdgirl
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Their whole operating structure is different. You would think the other airlines would catch on by now. |
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mikey
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Great service. Very reasonable airfares.
The other airlines airfares are too expensive. Why would you
spend more for a flight if you got better service with a less expensive carrier. |
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mgabevw
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cheap tickets |
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