RIP to the 'Southwest effect'?

[Ualexpress]

I'm guessing the author meant to say 115 billion revenue passenger miles.

 

[humveedriver]

In the third paragraph, the author says that SWA flew 115 billion people in 2013. Obviously that's just a little off. I'm not gonna check but how accurate are the rest of the numbers?

If you click on that 115 billion (which is a link) figure it takes you the DOT statistics. 115 million is listed. Not billion.

 

[j41driver]

I realize that it is million. Proof reading is good.

 

[SpauldingSmails]

Interestingly enough, you can look at the change in air fares paid between 2000-2013 by market. At predominately SWA markets the increases were some of the steepest across the country. DAL for example up 47.1% over the period, MDW up 45%, BUR 49.6%... quite impressive.

http://www.rita.dot.gov/bts/airfare...nce/air_travel_price_index/html/table_13.html

 

[krewmeel]

If you click on that 115 billion (which is a link) figure it takes you the DOT statistics. 115 million is listed. Not billion.

This is why no one actually buys a USA Today. If the hotels didn't give them for free I would never look at it.....Truly the McDonalds of newspapers, tastes good going down but contains no nutritional value.

 

[waveflyer]

I thought the long standing critique of SWA by pilots was the undercutting of fares in markets.
Now that SWA's been carrying the water on pilot contracts for a decade and have had to raise prices, that's a bad thing ?
Consolidation has led to a healthier more profitable industry. We seem to be breaking load factor records every quarter
That's a good thing for us

These ticket prices don't exist in a void.
I know economics isn't a pilot strong point, but we ought to try and see the big picture

 

[BILL LUMBERG]

I thought the long standing critique of SWA by pilots was the undercutting of fares in markets.
Now that SWA's been carrying the water on pilot contracts for a decade and have had to raise prices, that's a bad thing ?
Consolidation has led to a healthier more profitable industry. We seem to be breaking load factor records every quarter
That's a good thing for us

These ticket prices don't exist in a void.
I know economics isn't a pilot strong point, but we ought to try and see the big picture

Wavey,

Congrats btw for being pulled off my ignore list.... =)

Question, if a 9/11 type of crisis hit today, would SWA be nimble enough to cancel deliveries, not furlough anybody, not be devastated in current section 6 and stay profitable?

Serious question...not for sniping. You are a mature airline now who skipped our pain by very smart hedging.....could you stay on top?

 

[HowardBorden]

Wavey,

Congrats btw for being pulled off my ignore list.... =)

Question, if a 9/11 type of crisis hit today, would SWA be nimble enough to cancel deliveries, not furlough anybody, not be devastated in current section 6 and stay profitable?

Serious question...not for sniping. You are a mature airline now who skipped our pain by very smart hedging.....could you stay on top?

No one could know the answer to those questions. Also, these things don't happen in a vacuum, they would effect all airlines not just SWA.

SWA does have a big ace up its sleeve though. SWA could choose to charge for bags and charge various other ancillary fees that all the other airlines are already collecting. My guess is they could remain profitable. No furlough is anyone's guess. We did eek out small contractual gains post 9/11 but considering our current negotiating climate I would speculate the chances of a substancial contractual gain would be slim to nill.

 

[waveflyer]

Bill, it's a fair question, and the devil's in the details. Do we lose a hull or two in this crisis? Did we make mistakes within that crisis that could've helped prevent it? Do we have a govt that wants to make an example out of like Bush did with united? I've always thought that was more than just a little critique worthy.
I don't think anyone at SWA is walking around thinking we're invincible. If you do, please slap them for me, then tell me who they are so I can slap them. We will need to compete

There's no getting around that

That said, we had a major economic meltdown in 2008, and we didn't furlough. So for all the critiques of GK and MvdV, they are good men who will fight like hell not to be the first execs to furlough. Those who claim otherwise haven't spoken with them much. They are simply faced with a much different environment and reaching our limit with our current structure. So we'll see.

I'm very well aware that delta was known for half a century as 'never having furloughed'
Until they did.
So, I recommend humility, and to not rest on our laurels with a good contract and get into that insidious mindset where 'we've made it'

Want no part of that

 

[BILL LUMBERG]

Ok...

Fair enough Howard and Wave.

We would all be hurt but you are right about charging for bags, it's a way out.

I honestly believe another trip through BK wouldn't be in our future if that went down. We have flexibility now.