Delta AIP
12-06-2022, 12:34 PM
#93
Furloughed Again?!
Joined APC: Aug 2007
Position: Boeing 737
Posts: 4,804
Given SWA's history of undercutting everyone pre-9/11 and doing precisely nothing to assist everyone else in pattern bargaining, it's probably best to stay humble.
SWA finally caught up with everybody else only after they all went bankrupt and were forced into concessionary contracts.
12-06-2022, 01:10 PM
#94
Line Holder
Joined APC: Nov 2022
Posts: 48
Disclosure - Raw data originally from yahoo…(should be decent and this is just for my own use…accuracy not guaranteed and shouldn’t be relied on)
I avg’d TTM (trailing twelve months), plus the last 4 years for 5yr avg. Balance sheet is only a 4yr avg. This will skew analysis a bit, but the post covid recovery numbers are interesting and the comparison between companies is on par.
SWA isn’t even in the same world as the others on paper. Good equity, good ROA, more bottom line on half the assets.
Considering the pilot counts, and how thin the margins are for the legacy competition, I think SWA would actually be able to use a leading contract to bury the other guys. They should set the tone, force the others to match, then eat them up in the market with lower fares due to their operational efficiency. Get the best pilots, demand outstanding customer service and hustle, eliminate turnover expense with the top contract, and set the big 3 up for an un-winnable war. Legacies are so leveraged they can’t compete heads up, and their operations are not as efficient to begin with. These new contracts will squeeze them the most IMHO.
There is your shareholder-centric strategy - bury them by setting the bar high first.
The bean-counters won’t like the gamble, but a visionary leader can play just 2 or 3 deep chess on this one and see the outcome. It only works with a leader who can get the culture restored as part of the deal.
(Disclosure - I’m an idiot. My posts are for entertainment only and should not be relied upon for any reason)
PS - I also analyzed customer and travel-writer reviews online. I don’t have time to spread the data, but the casual review heavily favors SWA….another competitive edge that is theirs to lose. The culture is apparent at the customer level, which matches my personal experience as a business traveler.
I avg’d TTM (trailing twelve months), plus the last 4 years for 5yr avg. Balance sheet is only a 4yr avg. This will skew analysis a bit, but the post covid recovery numbers are interesting and the comparison between companies is on par.
SWA isn’t even in the same world as the others on paper. Good equity, good ROA, more bottom line on half the assets.
Considering the pilot counts, and how thin the margins are for the legacy competition, I think SWA would actually be able to use a leading contract to bury the other guys. They should set the tone, force the others to match, then eat them up in the market with lower fares due to their operational efficiency. Get the best pilots, demand outstanding customer service and hustle, eliminate turnover expense with the top contract, and set the big 3 up for an un-winnable war. Legacies are so leveraged they can’t compete heads up, and their operations are not as efficient to begin with. These new contracts will squeeze them the most IMHO.
There is your shareholder-centric strategy - bury them by setting the bar high first.
The bean-counters won’t like the gamble, but a visionary leader can play just 2 or 3 deep chess on this one and see the outcome. It only works with a leader who can get the culture restored as part of the deal.
(Disclosure - I’m an idiot. My posts are for entertainment only and should not be relied upon for any reason)
PS - I also analyzed customer and travel-writer reviews online. I don’t have time to spread the data, but the casual review heavily favors SWA….another competitive edge that is theirs to lose. The culture is apparent at the customer level, which matches my personal experience as a business traveler.
Last edited by Teamroper; 12-06-2022 at 01:23 PM. Reason: Added some stuff
12-06-2022, 01:11 PM
#95
Gets Weekends Off
Joined APC: Jan 2008
Position: Couch-Horizontal
Posts: 467
Who claimed that Delta's new contract would be "generational"? This is nowhere in the ballpark of "generational."
I would definitely vote no if SWAPA brings us something like this. But I fear that 84% of my fellow SWAPA members would not join me.
We have the leverage available to us if we want it to achieve much better than this. But right now, it seems like we don't really want the leverage to accomplish that.
I would definitely vote no if SWAPA brings us something like this. But I fear that 84% of my fellow SWAPA members would not join me.
We have the leverage available to us if we want it to achieve much better than this. But right now, it seems like we don't really want the leverage to accomplish that.
12-07-2022, 06:25 AM
#98
Gets Weekends Off
Joined APC: Oct 2021
Posts: 328
What may be acceptable for DAL, UAL, AMR, or anyone else, may not be acceptable for us. We have one type, are very efficient, and work harder than most. We don’t have long haulers and the pay and QOL that may come with such equipment.
I will have to fly with a lot of our new hires at some point. I want to attract the very best candidates we can muster. Riddle me this; why should a new candidate choose SWA over DAL when all they can expect to make is DAL 737 top rate, assuming that’s all our negotiations can attain? Worse yet, why should a newly minted new hire choose to stay vs jumping ship to DAL? DAL has equipment that pays more than 737 top rate. And, they may have some QOL improvements that we may not have! The math doesn’t work. Culture alone is not going to work anymore. Just throwing that hot potato out there…
I do not care to rely on any potential POT for compensation calculations or sell jobs. That is mostly a pipe dream for most, especially the junior and new comers. Only the savvy and often well connected can take advantage of these perks. There’s always the probability that we can at times be over staffed and thus, preventing Premium pick up by mere mortals.
I will have to fly with a lot of our new hires at some point. I want to attract the very best candidates we can muster. Riddle me this; why should a new candidate choose SWA over DAL when all they can expect to make is DAL 737 top rate, assuming that’s all our negotiations can attain? Worse yet, why should a newly minted new hire choose to stay vs jumping ship to DAL? DAL has equipment that pays more than 737 top rate. And, they may have some QOL improvements that we may not have! The math doesn’t work. Culture alone is not going to work anymore. Just throwing that hot potato out there…
I do not care to rely on any potential POT for compensation calculations or sell jobs. That is mostly a pipe dream for most, especially the junior and new comers. Only the savvy and often well connected can take advantage of these perks. There’s always the probability that we can at times be over staffed and thus, preventing Premium pick up by mere mortals.
This is very true. As a SWA new hire who’s actually considering this now. Recently got a CJO with Delta and now just evaluating what I want to do. I’m strongly leaning on leaving SWA unless we can come up with a contract that would be worthwhile to stay and not go to DAL. By time I have my DAL class date I’d be looking at leaving at a year worth of seniority and 2nd year pay at SWA. But that’s the risk I’m willing to take unless things change.
12-07-2022, 06:38 AM
#99
At your mom's house
Joined APC: Jun 2008
Position: cpt 737
Posts: 2,798
This is very true. As a SWA new hire who’s actually considering this now. Recently got a CJO with Delta and now just evaluating what I want to do. I’m strongly leaning on leaving SWA unless we can come up with a contract that would be worthwhile to stay and not go to DAL. By time I have my DAL class date I’d be looking at leaving at a year worth of seniority and 2nd year pay at SWA. But that’s the risk I’m willing to take unless things change.
depends on where you live I guess. If I had a commute either way- delta. If I lived close and easy to a delta base- delta.
12-07-2022, 07:10 AM
#100
weekends off? Nope...
Joined APC: Apr 2014
Posts: 2,021
This is very true. As a SWA new hire who’s actually considering this now. Recently got a CJO with Delta and now just evaluating what I want to do. I’m strongly leaning on leaving SWA unless we can come up with a contract that would be worthwhile to stay and not go to DAL. By time I have my DAL class date I’d be looking at leaving at a year worth of seniority and 2nd year pay at SWA. But that’s the risk I’m willing to take unless things change.
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