Loading

Southwest Airlines: Where is the LUV? Rivals have advantages as labour relations crumble

Premium Analysis

At the turn of the century it would have been heresy to describe Southwest Airlines as embattled. The venerable low cost airline was a perennial passenger favourite, and its employee relations were the most positive and successful among US airlines. But during recent years the company's admirable relationship with labour has soured, culminating in the recent declaration by Southwest's union leaders that the company's top two executives should vacate their positions.

The labour discontent and years-long negotiations have not only damaged management's credibility in the eyes of many employees, but have also prevented Southwest from taking important steps to create more outlets to generate revenue - including establishing potentially valuable codesharing relationships. As Southwest moves closer toward having the proper technology to support those partnerships, the likelihood that labour groups will approve codeshares is decidedly low as rifts between management and employees deepen.

Southwest had reached an inflection point in its frayed labour relations. Its golden image has tarnished, and the longer that contract talks drag on, the more that scrutiny over management's ability to mend the strained relationships will continue to intensify.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,486 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.