LUV blames flight disruptions on union mechanics, exacerbating existing labor tension
Over the last month, Southwest’s timely Pulse score fell 34%, driven by a labor controversy (detected by Truvalue’s Spotlight events) involving the company’s mechanics union, Aircraft Mechanics Fraternal Association (AMFA).
In this research brief, we discuss:
- Escalating labor tensions, which stem from Southwest’s desire to outsource more maintenance work.
- Accident and safety management and how extensive outsourcing raises concerns on work quality.
- Short-term margin pressure if Southwest cuts maintenance outsourcing to levels in-line with peers.