Tentative Contract Deal Includes Codeshare Agreement

Southwest Airlines has tipped its hand on when it expects the economy, and its own fleet, to grow.

The Dallas Morning News reports Southwest's tentative contract with its pilots union commits to reversing the shrinkage of its fleet in 2009, and growing to 541 planes by the end of 2011, and 568 by the end of 2012.

Southwest has an all-Boeing 737 fleet. It totalled 537 planes at the end of 2008, and 13 new 737s will be added this year, but 15 older models will be retired, for a net drop of two planes.

In addition to growth which improves the job outlook for Southwest pilots, the carrier is agreeing not to code-share, or allow other airlines to fly its passengers, on routes within the continental US. The airline has already announced plans to partner with other airlines for service into Mexico and Canada, and the new pilot contract would allow similar deals serving the Caribbean.

Code-sharing on any longer international routes, or flights serving Hawaii, would require approval in advance from the Southwest Air Lines Pilots Association.

Union President Karl Kuwitzky said his members don't like code-sharing in any form, but the proposed contract does bring pay raises retroactive to 2007, additional raises if the company performs well, and an increase in the company's contribution to 401(k) accounts.

Kuwitzky predicts,"I think our pilots will review the entire contract and make an informed decision. I don't think our board would have sent this to the membership or recommended a 'yes' vote if we thought it was in their worst interest...Overall, it's a pretty good contract."

FMI: www.swapa.org, www.southwest.com