LiveFreeorDie
Large Member
- Joined
- Jun 30, 2002
- Posts
- 224
For those of you with too much time on your hands here is a little article I pulled off Yahoo news. By the way Luv stock is down just under 12 dollars, pretty cheap for a company who hasn't posted a loss in 29 years!!!
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Dow Jones Business News
Southwest Sets Standard on Costs for Airlines
Wednesday October 9, 1:49 am ET
Major U.S. airlines would have to collectively slash $18.6 billion in costs, or 29% of their total expenses, to operate at the same level as Southwest Airlines , the only major carrier that has been profitable the past 18 months, Wednesday's Wall Street Journal reported, citing a study to be published today.
Unisys Corp.'s R2A Transportation Management Consultants tallied up the magnitude of the problem facing major airlines. By looking at Southwest's per- mile costs, the study concluded that the eight other big carriers would have to slash billions from their cost structures if they wanted to compete on an equal basis with Southwest and other low-fare carriers.
U.S. airlines are expected to post losses of as much as $8 billion this year, possibly eclipsing last year's record $7.7 billion. Even before the Sept. 11 terrorist attacks and the ensuing travel hassles and security costs, U.S. airlines were suffering from a steep drop in demand for high-fare business- travel tickets. The high-cost airlines face enormous pressure from low-fare carriers, which total more than 20% of U.S. domestic air capacity, as well as from powerful Internet tools that allow flyers to hunt bargains.
US Airways Group Inc. , which sought bankruptcy-court protection in August, is at the biggest disadvantage, the study said; its cost to fly one seat one mile is 69% higher than Southwest's. The data, which cover the year ended June 30, 2001, show UAL Corp.'s United Airlines, which is teetering on the edge of a bankruptcy filing, to be at the second-biggest disadvantage.
United, AMR Corp.'s American Airlines, Northwest Airlines and Continental Airlines all have costs at least 40% higher than Southwest's, according to the report. America West Airlines comes closest to Southwest, with costs 15% higher. Delta Air Lines and Alaska Air Group Inc.'s Alaska Airlines fly domestically with unit costs 30% higher than Southwest's.
Southwest, now the nation's sixth-largest airline, has been profitable for 29 consecutive years, relying on low costs, reasonable fares and high efficiency.
Wall Street Journal Staff Reporter Scott McCartney contributed to this report.
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Dow Jones Business News
Southwest Sets Standard on Costs for Airlines
Wednesday October 9, 1:49 am ET
Major U.S. airlines would have to collectively slash $18.6 billion in costs, or 29% of their total expenses, to operate at the same level as Southwest Airlines , the only major carrier that has been profitable the past 18 months, Wednesday's Wall Street Journal reported, citing a study to be published today.
Unisys Corp.'s R2A Transportation Management Consultants tallied up the magnitude of the problem facing major airlines. By looking at Southwest's per- mile costs, the study concluded that the eight other big carriers would have to slash billions from their cost structures if they wanted to compete on an equal basis with Southwest and other low-fare carriers.
U.S. airlines are expected to post losses of as much as $8 billion this year, possibly eclipsing last year's record $7.7 billion. Even before the Sept. 11 terrorist attacks and the ensuing travel hassles and security costs, U.S. airlines were suffering from a steep drop in demand for high-fare business- travel tickets. The high-cost airlines face enormous pressure from low-fare carriers, which total more than 20% of U.S. domestic air capacity, as well as from powerful Internet tools that allow flyers to hunt bargains.
US Airways Group Inc. , which sought bankruptcy-court protection in August, is at the biggest disadvantage, the study said; its cost to fly one seat one mile is 69% higher than Southwest's. The data, which cover the year ended June 30, 2001, show UAL Corp.'s United Airlines, which is teetering on the edge of a bankruptcy filing, to be at the second-biggest disadvantage.
United, AMR Corp.'s American Airlines, Northwest Airlines and Continental Airlines all have costs at least 40% higher than Southwest's, according to the report. America West Airlines comes closest to Southwest, with costs 15% higher. Delta Air Lines and Alaska Air Group Inc.'s Alaska Airlines fly domestically with unit costs 30% higher than Southwest's.
Southwest, now the nation's sixth-largest airline, has been profitable for 29 consecutive years, relying on low costs, reasonable fares and high efficiency.
Wall Street Journal Staff Reporter Scott McCartney contributed to this report.
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