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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1376 |
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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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