Southwest is coming to get you

Facing an intense battle with Southwest in Philadelphia starting in early May, US Airways CEO David Siegel yesterday made a dramatic and direct plea to employees to cut costs or the airline will face a certain death at the hands of Herb Kelleher.
In one-hour message town hall meeting broadcast to employees over the Internet, Siegel issued a dire warning that Southwest “is trying to kill us and take our franchise away.” Trying to frame Southwest as the enemy, Siegel said Southwest is “coming and they are not going to stop.” In a blunt and direct statement, he added that Southwest is “coming to kill us.” Southwest Chairman Herb Kelleher “wants our customers and he wants your job,” Siegel told employees.
Siegel also stole Southwest’s thunder by revealing the carrier’s plans to further boost capacity from Philadelphia. Early in the day, Southwest filed with OAG its July schedule that includes one new flight from Philadelphia to West Palm Beach, one service to Fort Lauderdale, one to Houston Hobby, four to Manchester, N.H., four to Raleigh-Durham, one to Los Angeles and one to New Orleans.
After Siegel’s broadcast, a Southwest spokesman said the airline had no announcement on new routes but Kelleher is planning a press event in Philadelphia today. In response to Siegel’s comments about Southwest’s intentions in Philadelphia, the spokesman said “Southwest is not in the business of trying to destroy other organizations.” He added the airline “wants to bring low fares to an overpriced market.”
Siegel urged the employees to battle for its territory in Philadelphia. He revealed that the airline plans to change its schedule at the airport to be more of a rolling hub, and boost utilization and make the operation more efficient. There also will be some significant changes in the management team that runs its second-largest hub. Siegel said the airline will reconfigure its aircraft seating capacity to be more competitive at the airport.
While Siegel did not discuss specific concession proposals, he said management will be starting formal negotiations with labor leaders next month. He repeated the message several times that all employees will participate the latest round of concessions. “No one is exempt,” he said. “We need to fight our competitors, not each other. We better adapt to the changing industry or we’re not going to make it.”
Siegel said he is willing to take a pay cut to set an example for everyone else. “We have to unite as an employee group to fight the competition and I’m committed to making sacrifices along with everyone else.” Adding more drama to the meeting, Siegel said he is willing to walk away from a “golden parachute” next month that is in his current contract. He said he is willing to stay and receive a salary similar to CEOs of low-cost carriers. “I’m not going to cut and run.”
US Airways needs to stop Southwest “in their tracks,” he said. He said Southwest currently has plans to start operating from four gates in Philadephia but if they expand to eight before US Air gets its costs down “it’s over.”
Revealing other changes, Siegel said the airline will unveil a redesigned web site later this year as part of a big push to boost online sales. He said the carrier is investigating inflight entertainment options and said there are possibilities that are better than what JetBlue offers. More long-term, Siegel said there is potential for a large narrowbody order when the airline is healthy enough to grow.