lowecur
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Just thought you would enjoy equal time.
January 30, 2004 12:46
Southwest Airlines Says Added Frills Are Unlikely
By Eric Torbenson, The Dallas Morning News
Jan. 30--Blunting speculation that big changes are afoot at Southwest Airlines Co., its chief executive told analysts Thursday that the carrier isn't likely to shake up its formula by adding smaller planes or in-flight entertainment.
The evidence to do either would need to be overwhelming, said Jim Parker at an investment conference in New York.
One of the hallmarks of Southwest's efficiency has been a commitment to a single type of aircraft, the Boeing 737, and a relentless focus on a no-frills flying experience.
But rivals such as JetBlue Airways Corp. have been capturing attention for trying new tactics in the low-fare arena, including diversifying their fleets and adding draws such as in-flight television and Internet connections for passengers.
Mr. Parker said he wasn't optimistic that an upcoming 100-seat aircraft type, the Embraer 190, could be run at acceptable costs. With 55 Airbus planes today, JetBlue has an order for 100 Embraer jets plus options for another 100.
"In my mind, it has a high hurdle to overcome," Mr. Parker said. "There would need to be a very substantial and certain payoff and reward from going to that aircraft type. At this point, we're a long way away from making a decision."
Southwest flies 388 Boeing 737s, saving training costs and allowing for greater flexibility for its crews. The carrier expects a net increase of 29 of the Boeing jets this year.
Southwest is similarly wary of spending the millions to add satellite television or other in-flight entertainment, though Mr. Parker said his team is looking at the options.
The airline recognizes that some passengers will pick a carrier based on those features, but still believes the vast majority will continue to choose flights based on price and schedule.
While other low-fare carriers have mimicked Southwest's simple business model, none has been able to improve upon it, Mr. Parker said, noting the airline has an unmatched industry record of 31 straight years in the black.
The carrier is changing by using electronic kiosks in airports, which will soon produce baggage tags and let passengers do more, he said.
January 30, 2004 12:46
Southwest Airlines Says Added Frills Are Unlikely
By Eric Torbenson, The Dallas Morning News
Jan. 30--Blunting speculation that big changes are afoot at Southwest Airlines Co., its chief executive told analysts Thursday that the carrier isn't likely to shake up its formula by adding smaller planes or in-flight entertainment.
The evidence to do either would need to be overwhelming, said Jim Parker at an investment conference in New York.
One of the hallmarks of Southwest's efficiency has been a commitment to a single type of aircraft, the Boeing 737, and a relentless focus on a no-frills flying experience.
But rivals such as JetBlue Airways Corp. have been capturing attention for trying new tactics in the low-fare arena, including diversifying their fleets and adding draws such as in-flight television and Internet connections for passengers.
Mr. Parker said he wasn't optimistic that an upcoming 100-seat aircraft type, the Embraer 190, could be run at acceptable costs. With 55 Airbus planes today, JetBlue has an order for 100 Embraer jets plus options for another 100.
"In my mind, it has a high hurdle to overcome," Mr. Parker said. "There would need to be a very substantial and certain payoff and reward from going to that aircraft type. At this point, we're a long way away from making a decision."
Southwest flies 388 Boeing 737s, saving training costs and allowing for greater flexibility for its crews. The carrier expects a net increase of 29 of the Boeing jets this year.
Southwest is similarly wary of spending the millions to add satellite television or other in-flight entertainment, though Mr. Parker said his team is looking at the options.
The airline recognizes that some passengers will pick a carrier based on those features, but still believes the vast majority will continue to choose flights based on price and schedule.
While other low-fare carriers have mimicked Southwest's simple business model, none has been able to improve upon it, Mr. Parker said, noting the airline has an unmatched industry record of 31 straight years in the black.
The carrier is changing by using electronic kiosks in airports, which will soon produce baggage tags and let passengers do more, he said.
