DFW takes SWA to task because of Denver

[Flopgut]

I'm a little confused. A backlash? From the people of North Texas when the prices out of DFW come down? I guess I can see that, not.
quote]

I'm not sure you will believe me, but try to trust me on a couple things here. There is a lot more at stake than just airfares. Not everyone needs a cheap ticket to one of 60 cities in the country, everyone DOES need a job. The aformentioned hot dog vendor for instance. That job, and many other similiar ones, are going to be affected. See, no one cares if an airline pilot is out of work (you will probably have to trust me on that one), but enough hot dog vendors lose their jobs-suddenly everyone starts caring. Municipalities are cash strapped, especially in Texas and not just because of the hurricanes. It was bad before the hurricanes, now it is worse. Every spare nickel that any municipality can find is going to help evacuees. Real people will have to go without additional help that money could provide them that the city is going to have to spend on Love Field if you get your way. Other Texas cities, who are just as cash strapped, are going to potentially lose airline service entirely after the WA is gone. (SWA won't be going to San Angelo) So citites are going to have to go into further deficeit spending to make sure the already amazingly wealthy SWA can give people cheaper airfares? Do you actually think an evacuee, with no job, no health care, and no house is going to care that SWA can give them cheaper airfares? You don't see any potential backlash?

 

[firstthird]

I think that AAL's threat to pull out of many markets if the WA goes away is empty. Since SWA will not go to San Angelo, why would AAL stop going there? A profitable market is a profitable market. Now, if AAL is actually subsidizing these markets by selling tickets below what it costs to fly them, well, that just doesn't make sense and maybe they need to stop flying to those cities, WA or not.

I also don't see how keeping fares up at DFW due to the WA is going to help the 'hot dog vendors.' Maybe the few that actually sell hot dogs at DFW but the rest of them will be able to go where they want to to for cheaper. Yea.

I'm enough of a cool aid drinker to really believe that SWA does what we say we do, which is give people the freedom to move around the country. Ding! I know other airlines do too, great. We do it with frequency and low price between medium and larger markets. Legacies do it by connecting everywhere to everywhere, sometimes with inconvenient plane changes and high prices. If the people in podunk USA want air service, it is likely going to cost them. I'm okay with that. What I'm not okay with is the 6th (or 7th, something like that) largest market in the US being held captive by one carrier at one airport (AA is 80% of DFW). That just doesn't seem fair.

I know the history, changing the rules, etc. The WA was put in place by legislative fiat and can be removed the same way.

Can someone explain why the people of North Texas should pay higher airfares just to keep DFWs books looking good so that they can continue to spend 990,000 of bondholders money to fight the SWA on removing the WA and give lord knows how much to Sen. Kay Bailey Hutchinson's husband.

WA aside, these pseudo-private/partly public airport authorities are out of control. Too much money, not enough accountablility. Seattle, prime example. SWAs gambit to move to BFI pulled down per seat costs for every airline at SEA, you're welcome.

 

[Flopgut]

SWA has been unfairly profitable since 2003. And that profit is due to hedges. But hedges are losing their bite. Unfairly profitable for 3 years does not equate to keeping the WA as is. Perhaps a phased or delayed end to it.

AA is struggling but that will change as revenue continues to rise and they increase international flying next year by 7%. Southwest can't increase international flying. AA has a strong feed and have made it out of the woods. Look for them to take market share from NWA and DAL.

Side note: Aviation week states Denver fees will be about $8 per. Not the higher price DFW claims. DFW must be looking in the rearview mirror, not forward. Aviation week also says the highest fee airport SWA serves is Seattle. Any sane management would try to find ways to limit those costs.quote]

I think the money SWA has raised via the fuel hedges is some of the most honest money ever made in this business. Absolutely brilliant! Whoever did that for SWA deserves a Nobel Prize! Think about this for a minute: Can you imagine if your company sold their fuel hedges! I can not believe they don't assail their mgt more over that at DAL! I would guess if you were the CEO of a Japanese company that did that they would cut your arms off on live TV!

Look, I can see where you are coming from on all posts. You have a great perspective and a real handle on this issue...on all issues I imagine. You should be running SWA someday. Or, at the very least, I hope you never have to fly with this SWA/FO guy (or gal), what a tool. I'm going to go over to the "flying with weirdos" thread and see what people write about him. (SWA/FO, I'm kidding, I'm sure your a good dude)

 

[FlyBoeingJets]

I hope we can help out the hurricane victims as much as possible. The government, federal and local, running deficits scares me to death. Hope we aren't looking at another recession. I need off this thread, too depressing.

Point taken, Flopgut. Thanks for the discussion.

 

[Hamburgler]

Wow, what a great thread. It took me 2 days to get through the whole thing!

I have to say, I agree with Flopgut. I've been following the whole WA saga of late, and I think his points are valid.

One point I didn't see brought up was the fact that if SWA starts long haul from Love, who is going to serve those smaller markets they currently fly to from Love? Surely SWA will start flying profitable long hauls as they are promising, I have to think that will cut into service to smaller destinations, which will hurt your options...

I also think SWA could do well at DFW. All airlines are having to adjust their business model right now and SWA has the profit to experiment. In addition, large airports are making huge adjustments so that they are more effcient (like DFW with the longer runways and hold pads) Like Flopgut said, SWA has a great deal from DFW, and could tap into a big market, with tons of connecting travellers...

 

[FlyBoeingJets]

.

One point I didn't see brought up was the fact that if SWA starts long haul from Love, who is going to serve those smaller markets they currently fly to from Love? Surely SWA will start flying profitable long hauls as they are promising, I have to think that will cut into service to smaller destinations, which will hurt your options...

Don't know where you got the idea service would be cut. SWA is taking delivery of airplanes and would use more gates with relief from the WA. I can't see any reason why service would be cut to any smaller market. It would probably increase.

 

[Hamburgler]

Hi Fly!

My understanding from this conversation and what I've read is that if WA is overturned, then other airlines would come in and take a few gates at Love...potentially even AA. If the remaining gates are taken by competitor airlines, I can't imagine SWA would continue to fly the short haul at the rate they currently are...

Where did you see that SWA would take more gates at Love?