SWA operating expenses higher than competition

[MALSR]

I just heard that AirTran has lower operating costs than SWA now. There's a whole bunch of bankrupt carriers coming out of chapter 11 soon as well. Where do people see SWA in 5-10 years?

 

[Hutchman]

Looks like a good time for all the other airlines to get a payraise. I know SWA is wishing for it.

 

[MALSR]

Looks like a good time for all the other airlines to get a payraise. I know SWA is wishing for it.

Thats just it, they already hold the bar really high.

 

[Non Union]

I see people prefering airlines with meals, movies and satellite radio instead of the no-frills Southwest flight. I also predict people will avoid Southwest because of the amount of stop-overs required to get to their destinations. Price will be about equal between the airlines, since all the legacies have cut costs.

Also, pilots will have other options with other airlines, so Southwest will have a tough time getting qualified applicants. Why fly a 737 for SW bouncing around Texas for 4 legs, when you can go to CAL and fly one leg to Rome?

Tough times ahead for Southwest. The business model is flawed.

 

[GogglesPisano]

I see people prefering airlines with meals, movies and satellite radio instead of the no-frills Southwest flight. I also predict people will avoid Southwest because of the amount of stop-overs required to get to their destinations. Price will be about equal between the airlines, since all the legacies have cut costs.

Also, pilots will have other options with other airlines, so Southwest will have a tough time getting qualified applicants. Why fly a 737 for SW bouncing around Texas for 4 legs, when you can go to CAL and fly one leg to Rome?

Tough times ahead for Southwest. The business model is flawed.

You just can't resist stirring the pot. imp:

 

[MALSR]

Price will be about equal between the airlines, since all the legacies have cut costs.

Due to internet bookings, all airlines charge the same fares from one point to the next (say, MSP-ORD or SFO-LAX) ...so it comes down to who has the lowest costs in order to make a profit.

 

[Non Union]

You just can't resist stirring the pot. imp:

Hey Goober. Seriously, you are in CAL training, right? Things are looking good at CAL as well as all the legacy airlines. Don't you agree?

Southwest's days are numbered at being the premier airline to work at. And fly on, too.

 

[GogglesPisano]

Southwest's days are numbered at being the premier airline to work at. And fly on, too.

Since you are a CEO with an MBA, why not give us a professional analysis of this topic? Feel free to use the balance sheets of the carriers in question, and reference each carrier's RASM, CASM, ASM's... P&E's, market caps, 10-K's should be referenced as well.


No plagiarism now. :laugh:

 

[SWA GUY]

I see people prefering airlines with meals, movies and satellite radio instead of the no-frills Southwest flight. I also predict people will avoid Southwest because of the amount of stop-overs required to get to their destinations. Price will be about equal between the airlines, since all the legacies have cut costs.

Also, pilots will have other options with other airlines, so Southwest will have a tough time getting qualified applicants. Why fly a 737 for SW bouncing around Texas for 4 legs, when you can go to CAL and fly one leg to Rome?

Tough times ahead for Southwest. The business model is flawed.

I like this guy....he's a funny guy!

 

[Mr Hat]

Tough times ahead for Southwest. The business model is flawed.

Yeah it is! I mean 35 years of straight profitability quarter by quarter.....Totally flawed, totally. I mean really, Airlines aren't supposed to make money right? And Southwest has never furloughed a pilot?!?! What the hell is that? Their pilots are actually HAPPY?!!? How can they even call themselves an airline!?!
Airlines are supposed to be dark dismal places where people react to situations rather than try to avoid situations. Your job is always on the line and just when you think you finally made it to the big time, they smash you with concessions and lousy work rules. If you go to Southwest, your gonna miss out on all that action. What a boring life knowing that your job is stable, your making good money and the company actually cares about you.

 

[Mamma]

Why fly a 737 for SW bouncing around Texas for 4 legs, when you can go to CAL and fly one leg to Rome?

quote]

I don't like crossing the pond. It is boring. I would rather do 4 hops through TX and be home for the evening. Not everyone thinks flying to Rome over and over and over is a great gig.

 

[skiandsurf]

Southwest's days are numbered at being the premier airline to work at. And fly on, too.

Was SWA ever the premier airline to fly on?

 

[MALSR]

Yeah it is! I mean 35 years of straight profitability quarter by quarter.....Totally flawed, totally. I mean really, Airlines aren't supposed to make money right? And Southwest has never furloughed a pilot?!?! What the hell is that? Their pilots are actually HAPPY?!!? How can they even call themselves an airline!?!
Airlines are supposed to be dark dismal places where people react to situations rather than try to avoid situations. Your job is always on the line and just when you think you finally made it to the big time, they smash you with concessions and lousy work rules. If you go to Southwest, your gonna miss out on all that action. What a boring life knowing that your job is stable, your making good money and the company actually cares about you.

35 years? Legacy carriers have been around for more than 80. What you are describing is no different than what the legacies went through in the 1990s and I think SWA will experience the same rise and fall due to operating costs- not because they have "never furloughed a pilot," etc. I have nothing against SWA, that's just my opinion is all.

 

[Bringupthebird]

SWA must be looking for ways to innovate to lower it's costs or add value. Anything less would be the beginning of the end.

("But we've always done it this way"- Legacy Airlines)

 

[clickclickboom]

The 10 year cycle is just starting over again.. Now the Legacies are in destroy mode they will spends hundreds of millions of dollars with the expectation of running everyone out of business and continuing to spend spend spend on planes, gates, pilots, infrastructure etc etc

Running in parallel you have the labor groups that are fighting for their pay and benefit increases which they will slowly get of course it is going to cost the airlines hundreds of millions in pay, work slowdowns, sickouts, ( NWA goundcrews blocking gates etc) Strike Committes ( United already set for 2009?)

Next throw in the EU/US Open skies chipping away at the legacy profit margins in the coming years

Throw in a little terrorism and middle east instability and the next round of concessions, givebacks, bankruptcies, and management golden parachutes are just around the corner.