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To: CindyDawg

What the press won't tell you is that Southwest is in for some tough times ahead. Their labor costs are getting out of control, and the only thing keeping them profitable is their fuel hedging.

The other majors have lowered their costs considerably and have worked to level the field.


71 posted on 12/08/2005 6:11:29 PM PST by Central Scrutiniser (Christmas is annoying, Happy Festivus)
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To: Central Scrutiniser
....and the only thing keeping them profitable is their fuel hedging."

You may be right that Southwest could face some upcoming labor unrest. After all, they are unionized. However, the fuel hedging strategy has allowed Southwest to dictate the setting of domestic airfares. If Southwest were not hedged as such, they would simply charge higher fares and would still remain profitable. They are in a position to do so.

The other carriers have had no choice but to match Southwest's fares, even if it means figuratively running their airlines into the ground (but not through the fence at the end of the runway).

112 posted on 12/08/2005 6:29:52 PM PST by CALawyer
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