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Well then, thanks for all of the non-rev opportunities while it lasted! Wherever there was a Song, no worries! Good day.
Delusional, eh? WRONG. We had to compete against Jetblue on the East Coast, since they did have a better product at the time, and we were using 737-200s at Delta Express. We were the second airline to use a live TV (we use Dish Network), and we were doing well overall, with critical acclaim from several magazines (Reader's Digest being one of them). But, after some thought and seeing that our core market liked the Song idea but wanted the first class seats and experience along with the Dish Network TVs, we SMARTLY decided to change Song back into Mainline and offer the TVs on mainline, which will eventually include TVs on 738s as well, and anything over 1700 nms. It was an experiment that showed us what everyone wanted, the option for a first class seat along with TVs too. It may have accelerated our BK, but in BK we shed $13 billion in debt and we are stronger now for it. You have a great day.
Bye Bye--General Lee
General,
Song was copied directly from jetBlue. How very original of your company. Especially since the concept of an airline within an airline was attempted many times before with much success - Metrojet, Shuttle by United, CLite, and even your very own Delta Express. They all worked out so well before.
Fact is, you got your a--es handed to you by the likes of jetBlue, Airtran, and SWA. Hence the retreat in Florida and your vast international expansion plans.
At least you copied an airline with a great product - that's the reason for the highly coveted Reader's Digest Poll. Congratulations - your fantastic management team copied a competitor's product and gave your airline an identity crisis. I overheard Delta passengers exclaim that they thought they were flying on Delta and stood there incredulously staring at a white and green 757. Another great idea - Let's train our FA's to actually have fun and be kind to our customers. I'm surprised you didn't win another Reader's Digest Poll for that brilliant flash of genius.
As you said your mangaement team wisely decided to do what Delta was good at - go after the full fare businessman. It wasn't because as you said:
"it was doing well overall, but we figured we shouldn't go after Southwest's normal passenger (the one that has never been on a plane before, but has heard them fly over the trailer park).
Yeah right, Delta is in a position to refuse certain peoples' money because it's not good enough!!! Those peoples' money doesn't pay your bills does it? You further weaken your argument when you resort to insulting people on a personal level. If you truly believe the majority of SWA's passengers reside in trailer parks and don't eat with forks then I invite you to say that to them when they depart our jetway...
You have a superiority complex that you have not earned.
It pains me to admit this but I purchased tickets on Delta to Grand Cayman through Atlanta. I must admit I enjoyed your bankruptcy fares. The flight to Atlanta was on one of your commuters. I came from the Commuter ranks so I do not mean this personally to any Commuter pilot but that experience was one of the worst I have ever had. I won't bore everyone with the details but the Customer Service Agents hated their jobs, were terriibly rude, and mistreated all of YOUR customers. Great new EMB 170 but a terrible experience. All of the suits on that flight were very impressed as well. You will say that wasn't really Delta but to everyone there that day it was. How many of your Delta flights are operated by your Regionals again? Delta has lost a lot of quality control contracting out its' flying.
The connecting flight on your 757 to Grand Cayman was fine but nothing special. A coke and a snack. Flight Attendants that would rather be elsewhere. What a premium product you have. I have news for you - the people I sat next to were no different than the people I fly around everyday and I'm sure their money spends the same way.
Wake up General, you need to be part of a sustainable business. All of the money spends the same whether it came from JFK or LBB...
Congrats on your critical acclaim. What a very expensive experiment you guys discovered - Delta customers actually wanted to receive what actually had made delta successful in the first place.
You should have asked me - I would have only charged Delta a $5 million consulting fee. I then could have had a nice dinner and bought forks for our passengers to use at home in their trailer parks.
Also, congats on shedding your mismanaged $13 billion debt on the backs of your own coworkers and your creditors (and all of their employees and families). You are now stronger for it - you should be proud.
Soon you can start another mismanaged airline within an airline designed especially for you. You can fly only 787s to and from Paris with Direct TV, Fresh live Maine Lobsters, and Evian Water all in the cockpit. You can even issue more stock that will later be declared worthless to buy gold forks for you and your captain...
BK was painful, but we have come out even stronger. We did lose the pension, but thanks to the high claim sale, most of the creditors got a lot more than usual for their debts. UAL gave their creditors 24 cents on the dollar, and most of ours went at over 60 cents, primarily because we have a better plan. OUr non pilot workforce did not lose their pension (note USAir's did), and our retired pilots got a claim in BK worth $880 million, and the PBGC who insured their pensions was pretty much paid in full, so there is talk that most of the retired guys will still get a lot of what they were owed. Yes, there were some layoffs, and some furloughs, and most have come back or were offered new jobs now. The best thing we did shed was our lame brain past management. Our new management actually got rid of that $13 billion in debt, which is amazing since UAL still has $19 billion in debt. We also have focus and obviously some people think we will do well (read Barron's article again).
It's ok if you are jealous. I understand you love your company but hate to go to work because you finish each trip exhausted. Hey, atleast you are paid well (thanks to our old pay rates), and you still have the 1 2 3 rule in LBB. Go get drunk and ride a horse down Main Street. That should be fun! Yahoo!
Bye Bye--General Lee
What makes Southwest so special now after the fuel hedges are running out and when the legacies cost structures have dropped significantly.
I will say it again, Southwest stands for cheap tickets and the best deals in the country. However, Southwest has realized that it can no longer offer that and make record profits. Therefore, they are forced to look at other business models like code-sharing and upping their service which are never part of their traditional way of doing their business. They have also started flying to crappy airports like PHL and SFO.
So what makes Southwest so different compared to others now except they don't offer first class? Why would someone take a flight from Houston to Baltimore/Washington D.C on them. I'd bet you money Continental fares are at least competive or might be even cheaper, with plenty of non-stop options to 3 airports in DC area. Southwest may even make a stop or two along the way. Now, Continental may operate those flights at a loss with that kind of fares, but it has some ability to make it up with international revenue. What could Southwest do with the loss at that point? Also, a large portion of the consumers will continue to run to Orbitz, Priceline and Travelocity for better deals where Southwest does not participate, a part of harsh industry wide reality of not being able to charge the consumers more to fly.
Also, by the way, whoever came out and said Swan Song was doing well overrall and Delta smartly pulled out is clearly delusional. Song was one of the dummest things Delta has done in it's history.
Would you be happy if someone paid 60% of what they owed you?
What makes SWA different from other airlines is that they are willing to adjust their business model as the industry changes. What a concept. This is nothing new, SWA has changed along the way and everytime it changed, people claimed the sky was falling for SWA but SWA just keeps plodding along, racking up profitable year after profitable year.
In the last quarter, even if you exclude the fuel hedge...SWA still made money. Not everybody did.
I keep hearing that the majors/legacy carriers have caught-up to SWA in cost...simply not true. The gap has narrowed...but they have not caught up.
These are the CASM-ex-fuel numbers from the last quarter.
6.68 - LUV
7.8 - ALK
7.06 - DAL
7.91 - UAL
10.56 - CAL
most of the creditors got a lot more than usual for their debts. UAL gave their creditors 24 cents on the dollar, and most of ours went at over 60 cents, primarily because we have a better plan.
Bye Bye--General Lee
You guys keep spouting off about how you all have reduced costs and cut debt. All this has been done on the backs of employees and by not meeting obligations to creditors and vendors. Bankruptcy has become a legalized form of theft. It's amazing to me that anyone can seem proud that their company screwed creditors out of 40% of what was owed them. That says a lot about you and your company. It's OK to just F*** people over as long as we do it less than the other guys. Even with all that welfare help, your costs are still higher. I assume all you guys want to get pay rates back up, right? There is nowhere for your costs to go but up. WN is an efficient operation and no legacy will ever get their costs down to that level. And whatever happens to costs, I believe that management at WN will meet their obligations. Thats why I'll be happy to enjoy my overnight in Lubbock, Midland, or wherever they send me.Our new management actually got rid of that $13 billion in debt
but I am proud to know that my company was founded on integrity. If SWA promises me or someone else something, they will deliver........100%.
.......but I just wonder how much money they spend sending out hundreds of cards every day.
Seriously? If I pay 60% of my mortgage this month, how would the bank feel? I think this goes back to the "F+" theory. Your company gave the hard working companies that trusted DAL 60% of what yall promised them.
We might fly little baby airplanes vs your 767 or have to eat Whataburger vs your Zebra, but I am proud to know that my company was founded on integrity. If SWA promises me or someone else something, they will deliver........100%.
SWA will continue to be successful after the hedges run out for one BIG reason: the legacy carrier labor groups will demand a piece of the profit pie, just like mgmt has done by rewarding themselves for a job well done (thru their rose colored glasses). APA wants 30%+ and when one pilot group gets some $$ back, other will follow....so much for the post BK low cost structure. Labor costs will rise and the cycle will continue. SWA, in my opinion, will be just fine.