Originally Posted by
BoeingBoy
Laying it all at the feet of labor is a straw man argument. After all the labor cost cuts, why do the legacies still have costs that are higher than the low cost carrier? It's not labor expense per hour. It's the business model that the legacies still adhere to - and other than some short-lived experiments with low cost operations within the legacy model there's been no attempt to change the business model.
Hello again! We need to get together for lunch or something.
My intent was not to "lay all the problems at the feet of labor." I was using it as an example of how carryover from the regulation days still has an impact on the legacy carriers today. You are actually helping me make my point in asking your question. The basic pay framework of the legacy carriers was established under regulation to fit that environment. Consequently, no matter how much pay is cut, it is very difficult to compete with the LCCs on a labor cost per ASM basis, simply because the LCCs were able to tailor their overall compensation packages to suit their business model from the beginning. This makes nobody happy. I really wish there was some way for the legacies and their pilots to start over with a clean slate...I can't help but think that they could work something mutually beneficial out if both sides would come to the table with an open mind and a pure heart. Unfortunately there has been so much mutual mistrust and ill will in place for so long that its really a pipe dream.
Originally Posted by
BoeingBoy
And some here want the government to support the inefficient business model so the legacies can continue to have a disadvantage in costs that employees will have to pay for.
What it comes down to is "Keep the government out" when it adversely affects what MY favorite airline wants to do but "Where's that government help" when something is needed to help MY favorite airline out.
I am curious about what you believe the major problem is with the legacy's business model.
I realize that I am probably coming across as a DL and/or US fanboy in this thread, but in reality I am not - I just think that the slot swap would help them without unduly harming the public interest. In other situations I might be in extreme opposition to what they are trying to do. I really don't have a favorite airline right now. (And if I did have a favorite airline, it sure as heck would not be US Airways. I don't think I can ever forgive them for what they did to Piedmont!)