Southwest Airlines Slashes Costs by Closing 2 Crew Bases Amidst Financial Turmoil

Southwest Airlines is closing crew bases at Fort Lauderdale-Hollywood International Airport in Florida and Austin-Bergstrom International Airport in Texas as part of its cost-cutting measures. This decision, announced in a memo from a flight attendant union, will take effect on July 1, 2023, after a one-month delay agreed upon by the company and union representatives.

The closure of the two crew bases is part of a broader strategy by Southwest Airlines to reduce costs amid financial pressures. The airline has been cutting unprofitable routes and recently announced layoffs affecting 1,750 corporate staff members, representing 15% of its workforce. This move is expected to save the airline approximately $210 million in 2023.

Southwest Airlines opened the Fort Lauderdale and Austin bases in early 2018, which served as smaller satellite bases for flight attendants. The airline’s spokesperson indicated that the affected flight attendants would have the option to transfer to one of the 12 main bases, helping mitigate the impact of the closures.

Bill Bernal, president of TWU Local 556, acknowledged that while the company has the right to make such decisions, they significantly affect flight attendants. The union’s agreement to delay the closure by a month is intended to provide affected employees with additional time to adjust their professional and personal arrangements.

These changes follow a settlement with activist investor Elliott Investment Management, which gained five board seats at Southwest Airlines and advocated for leadership changes. The airline’s restructuring and layoffs are part of ongoing efforts to enhance operational reliability and financial performance.

In summary, the closure of crew bases in Fort Lauderdale and Austin is a significant step in Southwest Airlines’ cost-cutting initiative, impacting 280 flight attendants while aiming to strengthen operational efficiency across its network.