SWA being called PREDATORY of others' misfortune

[GlobeIII]

Homonym Alert!

Sorry couldn't resist
Fairs= Cotton Candy, Crappy Country Singers, Cheesy Rides and Blue Ribbons

Fares= The cost of a ticket

 

[Poahi]

why do you people not get it. if we paid more for fuel we would have higher ticket prices...why can't you understand that.

True, but then you would have lower load factors, negative growth, lower market share and layoffs. SWA's model works because it can remain profitable with pricing power. Hedges give you that edge.

 

[Deadalus]

I say good for Southwest. Southwest is an airline that puts its employees first. Wow, what an idea. You wouldn't see Southwest aquire another airline and then standby while it's original employees got screwed now would you? I hope Southwest takes over the world. F$%@ Virgin, Delta, US Airways, Alaska, etc, etc.

 

[Whataburger]

It wasn't capitalism that ran Braniff out of Love Field.

Was it Capitalism or the American way that ran Legend out of Love Field? How'd that lawsuit turn out?

 

[Whataburger]

Sorry couldn't resist
Fairs= Cotton Candy, Crappy Country Singers, Cheesy Rides and Blue Ribbons

Fares= The cost of a ticket

Crappy Country is better than any good HipHop.

 

[donvag]

No offense to anyone on this post but I see hipocracy. In alot of ways what WN is doing to Frontier in DEN what Wal-Mart does to Middle-America or as a vulture does to a dying racoon. As pilots we justify it because we admire pilots compensation in that company and that WN has been succesful in its ventures. We usually blame the other company WN competes with as if WN has done no wrong. I disagree with that argument. WN just hits the coup de grace. It would be interesting if NOW a days they would find their OWN routes instead of flying routes to run other companies to the ground. Then again that what competition is all about. I hear regional guys hating CHQ or Skywest for doing the same thing WN does but they think WN is ok because they pay their pilots better. While I hope my current company keeps growing I would hate for the growth of my company to consist of the lay off of friends and former colleages. Just an opinion.

 

[Tanker Clown]

Well, when you build a better mouse trap....

 

[zkmayo]

No offense to anyone on this post but I see hipocracy. In alot of ways what WN is doing to Frontier in DEN what Wal-Mart does to Middle-America or as a vulture does to a dying racoon. As pilots we justify it because we admire pilots compensation in that company and that WN has been succesful in its ventures. We usually blame the other company WN competes with as if WN has done no wrong. I disagree with that argument. WN just hits the coup de grace. It would be interesting if NOW a days they would find their OWN routes instead of flying routes to run other companies to the ground. Then again that what competition is all about. I hear regional guys hating CHQ or Skywest for doing the same thing WN does but they think WN is ok because they pay their pilots better. While I hope my current company keeps growing I would hate for the growth of my company to consist of the lay off of friends and former colleages. Just an opinion.

To a certain degree, I agree, and I thought the same thing. I doubt so many pilots or posters on here would be willing to agree with WN's ability/profitability if their pilots werent among the best paid in the industry. It would be "blah,blah,blah...their building it on the backs of labor..."

 

[Tanker Clown]

One thing I think we all can agree on is that when the hedges run out and it's a level playing field, SWA will have to reduce costs to compete.

 

[Mach 80]

donvag,

Your post hints at re-regulation of airline routes.

The USA is a capitialistc country. SWA didn't "DO" anything to Frontier. Frontier could have grown in a strong profitable manner but for whatever reason it didn't and the journey down that road started before SWA started adding routes. It's a liberal left wing rant to start bashing a company for being succesful and competing well and strongly -- it's what made this country what it is today. Darwinism in business needs to continue (even though the bankruptcy laws throw a curve into it).

Are you going to lobby Congress to not allow a CVS drugstore be built within 3 miles of a Walgreen's? Is that the way you want the United States to operate?

By the way, Wal Mart has done much for this nation. Many of the people who work there would otherwise be on welfare. Many of the lower income mothers who shop there can better afford shirts and shoes for their kids whereas before WalMart they couldn't afford to clothe their children as well. People can afford to feed their familes better due to WalMart. It's made life better for people and helped far more people than harmed.

Ever hear the arguement as to who has helped more people -- Mother Teresa or Bill Gates?

The answer is Bill Gates. He caused to employ millions of people around the world providing income for people to take care of themselves and provide good medical insurance -- not just Microsoft but all the ancillary companies that arose around Microsoft such as computer manufactures. His work also improved productivity dramatically thus lowering costs for everyone -- so get the big picture and don't become some left wing liberal when it comes to how the capitalstic system in this country works. It's a tough world out there but that's the way it is and it's still far better than socialism or communism. People who lose jobs think it's the end of the world and it's certainly not fun and it is stressful -- I know -- I've been there. But history has shown those people often end up working at a stronger more secure company later. There are plenty of ex-Braniff, ex-Midway, furloughed UAL and AA at SWA and they are happier than they ever were at previous emplyers. Life does go on.
tankerclown -- SWA may not have to reduce costs. How about they raise fares instead? By then they will be more monopolistic in their markets and be able to do that to cover costs. They are keeping fares relatively low now while they can to make things difficult for the competition and solidify their markets. They can continue to do this for the next several years then if necessary start raising fares more.

 

[Amish RakeFight]

Good points, Mach80.

 

[Tonedrvr]

Sorry couldn't resist
Fairs= Cotton Candy, Crappy Country Singers, Cheesy Rides and Blue Ribbons

Fares= The cost of a ticket

Thanks Globe III I saw that as soon as I pulled up the thread this morning. I posted it with the kids yelling in the background. I was lucky to even put a coherent thought together last night.

 

[suupah]

what pisses me off about southwest is that they aren't a really good transpo option for the country. Try to book seattle to nyc on southwest!

they cherry pick routes. like leeches.

On the other hand they are now the best service out there.

 

[Dumb Pilot]

SWA's model works because it can remain profitable with pricing power. Hedges give you that edge.

Working for a company that is 100% hedged for the next few years, I can tell you that you are correct in "principle" but.....! Fuel hedges allow you to price at a fixed cost during market fluctuations but it doesn't eliminate the effects of rising fuel costs, it only delays them. The market is not fluctuating, it is rising and we won't see under $100 barrel of oil ever again in my opinion. When all is said and done, the ticket prices will have to be raised to absorve the fuel costs and the overcapacity will have to be reduced

 

[nimtz]

why do you people not get it. if we paid more for fuel we would have higher ticket prices...why can't you understand that.

And you are sure that the customers would be willing to pay that higher ticket price? Guess what with the sh!t storm this economy is in they won't...