Southwest Airlines: Where is the LUV? Rivals have advantages as labour relations crumble
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.
To access CAPA Premium Analysis you need a CAPA Membership
Your window into the latest insights
CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.
Big picture strategic view
Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.
The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.
Customise your Alerts
CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.
I'm very impressed by the factual and detailed analysis CAPA is always doing.- CEO, Airline Member
Phone: +61 2 9241 3200 | Email: email@example.com