Friday Afternoon Breaking News- Dallas

[Flopgut]

I got the idea for higher fares from watching the money in my checking account sqwuak 1200. I'm reminded every month. Higher fares fix everybody's problems. SWA has precious few problems and that's good. I hope your always profitable and hope your quality of life is always improving.

We in this industry have more than fulfilled our mandate. It's is cheaper for people to fly across the country and have lunch than it is to take a family of six to the local steakhouse. Our customers aren't passing these sorts of savings on to you and I no matter what they do.

It's about time to see what we can do with this airline deal. Number one rule in business? Get the money. If you can make more of it than me, that's fine. But let's all go get some. This WA repeal is a chance for us to go forward.

 

[Flopgut]

I realize these thoughts on fares maybe seem misplaced, but higher ticket prices should at least be a continuous consideration.

 

[big_al]

SWA would be hurting financially if it wasnt for fuel hedges. I guess that says something about their business model and what extremely low prices does to your profit and your employees as well as the competition

 

[Dangerkitty]

I realize these thoughts on fares maybe seem misplaced, but higher ticket prices should at least be a continuous consideration.

That statement is proof right there that you have absolutely no clue as to SWA's mission nor their business plan.

 

[Bake]

big al, you obviously don't know how to read a balance sheet nor do you understand any financial statements. Yes, SWA profits would be much lower however they wouldn't be in trouble by any means.

Sorry, I missed that but NO. It's your mama

 

[arthompson]

I believe that fares are going to come down in the DFW area....not up. More competition is good for the consumer....good for SWA"s profits. Where do you get the "higher fares" concept from?

Tejas

How do you figure there is more competition? The agreement shuts all carriers but AA, SWA and CAL out of DAL. How does this stimulate competition? It doesn't, it protects SWA from having to compete with anyone but the specified carriers at Love, yeah thats going to be so great for airfares and the consumer.

 

[Tejas-Jet]

SWA would be hurting financially if it wasnt for fuel hedges. I guess that says something about their business model and what extremely low prices does to your profit and your employees as well as the competition

Not according to the SWA CEO in public remarks. Besides to get hedges, one must pay for it all up front. SWA paid up front and still recorded no losses.

Tejas

 

[Tejas-Jet]

How do you figure there is more competition? The agreement shuts all carriers but AA, SWA and CAL out of DAL. How does this stimulate competition? It doesn't, it protects SWA from having to compete with anyone but the specified carriers at Love, yeah thats going to be so great for airfares and the consumer.

It does stimulate competition in the DFW area. Look at what happened to fares when MCI and STL were opened up. And they just didn't go down on routes out of DAL....DFW airport passengers also saw some savings.

The 2 AA gates will remain under AA's control. This doesn't mean that AA will or must remain there....they could leave ( yet again) and sublet those gates to anyone else.....including....SWA I guess....Look at HOU...there are only 5 gates there that are not SWA gates. Nobody seems to have any heartburn with that. Yet I can remember a time when NWA, Frontier ( the old one), CAL (mainline), AA ( mainline), EAL, and Delta all flew out of there. As they left or pulled out, seems nobody else wanted those gates except....SWA

Tejas

 

[FlyBoeingJets]

SWA would be hurting financially if it wasnt for fuel hedges. I guess that says something about their business model and what extremely low prices does to your profit and your employees as well as the competition

I'm not trying to dogpile you Big Al...

But CAPEX at SWA was 1.2B+ last year. We BOUGHT, not leased, over 30 new aircraft. 7.5% profit sharing. And there was still a profit.

If SWA was "hurting financially" I think the CAPEX budget might get trimmed a bit.


I can see a case that expenses may get outta control in the future. But they just aren't that way right now.

 

[arthompson]

Tejas: You missed the section of the agreement that shuts out new entrants to the DAL market, so no it doesn't stimulate copetition.