NYTimes.com Article: Southwest Airlines to Add 4, 000 Jobs

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Southwest Airlines to Add 4, 000 Jobs

February 18, 2002

By THE ASSOCIATED PRESS




Filed at 9:27 p.m. ET

DALLAS (AP) -- Southwest Airlines (news/quote), which
bucked the trend of layoffs and flight reductions after
Sept. 11, plans to hire about 4,000 workers this year.

The help-wanted sign at Southwest contrasts with personnel
plans at other airlines. A few are calling back some of the
workers they laid off last fall. None are talking about
creating new jobs.

Dallas-based Southwest is the only major U.S. airline still
making money. The largest carriers, American and United,
lost $3.8 billion between them last year.

Southwest, however, was not immune to the slowdown in
business travel that started in 2001 or the steep decline
in travel after the terrorist attacks of Sept. 11. It put
growth plans on hold and delayed aircraft orders.

In December, Southwest announced it would take two new
Boeing (news/quote) 737s -- the first additions to its
fleet since the terrorist attacks. But the hiring plans are
Southwest's strongest indication that it believes it can
regain its previous double-digit growth.

Southwest, which has 33,000 employees, says it plans to
hire 250 pilots, 1,200 flight attendants and 2,600 other
workers. Officials said that would match the hiring pace
the airline had expected last year.

U.S. airlines announced about 100,000 layoffs after Sept.
11. The actual number of layoffs was closer to 80,000
because some workers took early retirement or left
voluntarily, according to the Air Transport Association, an
industry trade group.

Very few of those workers have been recalled, and Southwest
believes it can choose from experienced applicants.

``We've been seeing a lot of people who want a second
career, and we're seeing more furloughed flight attendants
and pilots,'' said Lorraine Grubbs-West, the airline's
director of field employment.

Ron Jackson, a former United Airlines flight attendant and
electrician who joined Southwest last year, said the
carrier's stability was a factor.

``We are always made to feel comfortable that we are going
to keep our jobs,'' said Jackson, of Orlando, Fla. ``I
can't say I was ever worried about that.''

Merrill Lynch (news/quote) analyst Michael Linenberg said
Southwest's ability to avoid layoffs last fall has probably
raised employee loyalty and improved its productivity --
already considered the strongest among major carriers.

``They tend to have some of the lowest costs in the
industry,'' Linenberg said. ``So in times of depressed
business, they can make money while others are losing
money.''

The major U.S. carriers lost more than $6 billion last
year. Linenberg said the industry would finally post a
profit of $270 million in the third quarter, with Southwest
accounting for 70 percent of the gain.

Ray Neidl, an analyst with ABN Amro (news/quote), said
Southwest was likely to resume its historical trend of 10
percent to 12 percent growth by the second half of the
year.

``They're not really an airline,'' Neidl said -- meaning
they don't operate the hub-and-spoke networks that all
other large carriers use. He said demand is growing for
Southwest's low-fare offerings, often at secondary
airports.

Major carriers have reported slow gains in passengers since
September, due partly to aggressive fare sales. But traffic
still lags year-ago levels -- Southwest was down 4.9
percent in January compared to a year earlier, Fort
Worth-based American fell 15.6 percent and Houston-based
Continental dipped 9.5 percent.

As a whole, the major carriers cut about one-seventh of
their flights, which led to the massive layoffs. Very few
of the laid-off workers have been rehired.

American Airlines fired about 11,000 workers and has
recalled 3,100, said spokeswoman Andrea Rader. Hiring
notices will go out April 1 to another 400 flight
attendants, she said.

American chief executive Donald Carty ``has told the
employees that this is a rebuilding year,'' with the goal
of rehiring many laid-off workers, Rader said. AMR lost a
record $798 million in the fourth quarter and $1.76 billion
for all of 2001.

United Airlines lost $2.1 billion last year and has cut
about 19,000 jobs. Officials for the airline did not return
phone calls.

Northwest Airlines (news/quote) cut 10,000 positions in
October. The airline laid off 490 pilots instead of the
originally announced 850 but has no plans for additional
hiring, a spokesman said.

A Delta spokesman said the company had no announcements
about jobs. Continental did not return phone calls.

Southwest said the new jobs would be spread across the 59
airports where it operates and at nine reservations centers
around the country. Officials said the greatest need for
workers was in Baltimore, Chicago and Oakland, Calif.

http://www.nytimes.com/aponline/business/AP-Southwest-Jobs.html?ex=1015087883&ei=1&en=8f95e89ca9e2f9b3



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