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Topic: Business
Number of pages / Number of words: 5 / 1376
Essay's paper body

Not only do they have pilots, flight attendants, and ground crews that may be unionized and have higher salaries, wages, and benefits, but also they may have high-cost airplanes and infrastructure. Southwest has an important advantage in that it has no fixed-cost pension system. Rather, it has a profit-sharing system...


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Southwest has an important advantage in that it has no fixed-cost pension system. Rather, it has a profit-sharing system. This converts pension cost from a fixed cost to a variable cost, significantly reducing its break-even point.

Since 2000, various things have changed in the industry that have affected the nature of costs...


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