UAL/USAir 737s

[skiandsurf]

If these two merge, and the talk is to park 100+ 737s, why not use those to start a UAL/USAir point to point carrier to compete with SWA.


I just do not understand that with all the success that SWA has had, why no airline has tried to copy what they have done.

 

[Quimby]

you keed, you keed!

 

[PositiveRate]

You're kidding right? Take 100+ older 737's and start a new company in this environment? Sounds like the expressway from "Large Fortune" to "Small Fortune".

SWA is a pretty unique case. Their hedges are a result of historically HUGE cash positions that were achieved from YEARS of profitability. They have had the luxury to price their product at a point where they make money. That flexibility is something no other airline has had and no new airline could could possibly achieve in this market.

 

[cal73cap]

Metro Airlines?

 

[FLYLOW22]

Southwest couldn't start Southwest as a new company in this environment.

 

[Fox-Tree]

No wait - This idea might have some merit!!

They could call it Shuttle by United or maybe Metro jet. What a great idea!

 

[FLYLOW22]

No wait - This idea might have some merit!!

They could call it Shuttle by United or maybe Metro jet. What a great idea!

It'd be more cost effective to chop the wings off and ship the jet and pax FedEx!!

 

[vixin]

They tried already and failed at it.

 

[skiandsurf]

Let me see, you can sit on this dinasour of an airline hub and spoke and watch SWA pick away at all the hubs (IAD, DEN, SFO), or you can reroute your existing planes to already staffed gates and compete in a proven model.

As far as Shuttle by United, I do not think they flew from ELP to AUS, or Spokane to Sacremento.

If you ever priced UAL vs SWA, you will see that SWA is not the low cost carrier, but they can charge more money for a direct flight.

You know the old saying, "if you cant beat 'em, join em".

 

[Cobra17]

No wait - This idea might have some merit!!

They could call it Shuttle by United or maybe Metro jet. What a great idea!

Brilliant! Or maybe TED? or JetBlue? ....

 

[PlaneDrvr]

Brilliant! Or maybe TED? or JetBlue? ....

Don't forget to throw in "Delta Express" or maybe "Song" then I think there was once a "Continental Lite" among others, but we could go on and on.

"Been there Done that"

 

[General Lee]

No wait - This idea might have some merit!!

They could call it Shuttle by United or maybe Metro jet. What a great idea!

We used to call Metrojet "Menstral Jet" because it looked like a tampon......


Bye Bye--General Lee

 

[skiandsurf]

Don't forget to throw in "Delta Express" or maybe "Song" then I think there was once a "Continental Lite" among others, but we could go on and on.

"Been there Done that"

Its been a few years since Cal Lite, MetroJet, or Shuttle by United, but I dont remember those having the point to point route structure that SWA has. It seems to me that these other attempts pretty much flew the same hub and spoke routes, just without offering no frills and no first class seats.

And, if the option is to park 100 planes and furlough 1500 pilots, it cant hurt to try what has worked for SWA.

Instead of fighting SWA in your backyard (DEN), take the fight to their backyard (AUS).

Instead of SWA being your competition, why not you be there competition.

You going to sit in your corner and let them kick your a**, or you gonna stand up and meet them in the middle of the ring?

 

[Bringupthebird]

SWA doesn't really do point to point per se. They take a city and find the best 5 or 10 destinations from there and flood the market with flights. At each of those cities they find the best 5 or 10 destinations and so on. That's why you don't see them in Charleston, WV or Garden City KS.

 

[ReverseSensing]

Instead of SWA being your competition, why not you be there competition.

You going to sit in your corner and let them kick your a**, or you gonna stand up and meet them in the middle of the ring?

Airline managements only want to copy the failed business models available to them, not the successful ones. It's like some sort of bizarre suicide pact.

Besides, if they tried to emulate SWA, they might have to admit that rank and file line employees make airlines successful, not MBAs.

 

[BigMeat]

CalLite is what we call our new FOs because the cant afford to eat and are suffering from tape worm because of the lack of med insurance.

 

[vetrider]

Shoot, I bet Southwest could take all the 37s a combined UAL/LCC would dump, and put em to use straight away, and make money to boot. Just to show the rest of the industry how incompetent they are.

 

[jtf]

Most of the time that I price flights out I get a better deal on the legacies than SouthWest since I have to connect somewhere on SouthWest and they are smart enough to charge more when they fly you more. Their direct flights are usually very great prices while the legacies rape you on those. I fly for NJA and almost never get SouthWest since they charge more to and from where I live than the legacies (though I will be hopping on them to MDW today on a direct flight that is very reasonable). I'm very curious to see how the legacies capacity cuts play out. All the consultants say they must cut capacity big time so that they can charge more, but what happens when they cut capacity and the LCCs just step in and increase their capacity? SouthWest may not grow as fast as originally planned, but they will still grow. And I'm sure they could revise their growth plans pretty quickly if the right opportunities present themselves. I do believe it would be the expressway to liquidation if a combined United/ USAirways tries to start a new company like SouthWest.

 

[Carl S.]

Southwest's growth is limited to the extent of their hedges in fuel. They do not have unlimited fuel hedges. As long as they can price below the rest of the industry, they retain the upper hand in market pricing and can dominate any market at will.

 

[ultrarunner]

We used to call Metrojet "Menstral Jet" because it looked like a tampon......


Bye Bye--General Lee

I thought it was Ghetto Jet...since all those 73's looked like a dump..still do as a matter of fact....

...but I like your nickname too...

nice

 

[ultrarunner]

All the consultants say they must cut capacity big time so that they can charge more, but what happens when they cut capacity and the LCCs just step in and increase their capacity?...

That's the kicker JTF....no one can really just "step in" and increase capacity....You need airplanes to do that, and plenty of 'em.

And in case you're behind in current events, LCC's like JetBlue, AirTran, Frontier, etc are currently cutting their own capacity.

It will shake out soon enough with high oil. We need 1 or 2 legacies and a LCC or two to go bye-bye and we'll get capacity down where those left standing will be able to charge enough to make some money.