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SWA CEO: Southwest Begins To Worry About The Future As Furloughs Loom

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Re: SWA CEO: Southwest Begins To Worry About The Future As Furloughs Loom

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It seems unlikely they will be able to avoid furloughs. These are really unique times. It's very sad all around.

 

 

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Re: SWA CEO: Southwest Begins To Worry About The Future As Furloughs Loom

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Agree it is sad, but it's hitting every airline. A few days ago united said it would likely have to lay off 36,000 people.

 

In another article, I read that US based airlines will likely permanently retire over 1000 aircraft.

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Re: SWA CEO: Southwest Begins To Worry About The Future As Furloughs Loom

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You could be correct, but I can only see it in the short term of a year or two.  Things will eventually come back and employees and planes will be needed again.  Does it help the airlines or employees in the meantime, no.  Wishing the best for all people who lose their job due to this pandemic.    

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Re: SWA CEO: Southwest Begins To Worry About The Future As Furloughs Loom

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I want to state that I used the term, "bailout money." when I expressed my thoughts.  In no way did I mean that as a negative.  What I want to correct is; SW used money set aside in the COVID Relief funding specifically for businesses like SW to continue to operate and not layoff or furlough employees.  

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Re: SWA CEO: Southwest Begins To Worry About The Future As Furloughs Loom

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It's actually pretty amazing that Southwest has lasted this long without furloughing anyone! It seems inevitable though, that they will have to do something, considering the state of the airline industry in general (no one is flying).

 

Thanks,

 

Jessica

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Re: SWA CEO: Southwest Begins To Worry About The Future As Furloughs Loom

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If I'm correct, all airlines got bailout money if they didn't lay off their employees.  that will end Oct 1.

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Re: SWA CEO: Southwest Begins To Worry About The Future As Furloughs Loom

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@SWFlyer007 wrote:

If I'm correct, all airlines got bailout money if they didn't lay off their employees.  that will end Oct 1.


You are correct. The federal subsidy that allowed airlines to keep paying employees and required airline to not layoff employees expires on October 1.

 

There s a federal law that requires employers to provide advance notice of intended layoffs - it's called the Warn Act. United has warned  that 36,000 and American that 25,000 employees could be laid  off no earlier than the 60 days after the warn notices were issued.

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Re: SWA CEO: Southwest Begins To Worry About The Future As Furloughs Loom

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IMHO, Gary Kelly's recent comments to the media should be seen as a "pre-warning." 

 

It's very unlikely that the carrier will see triple the number of current passengers by the end of the year.

 

I'm sure Southwest will consider all avenues prior to furloughs. I expect we will be surprised by upcoming changes.  But ultimately there are only so many expenditures that can be cut when you are already operating at reduced capacity.