SWA being called PREDATORY of others' misfortune

[reepicheep]

When the hedges run out in a few years SWA will be hurting like everyone else.

In a few years 25% of the current industry will be gone and Southwest will be able to raise their prices.

This is just the most recent "comeuppance" that's allegedly going to doom Southwest. First it was all the delays in the northeast when they went into BWI, then deicing costs in MDW, after 911 all the new security measures were gonna mean the end of 20-minute turns. They'll be fine, as long as they don't do something really stupid like buy part of usair.

 

[waveflyer]

Very wise words! SW has found its own "Reardan Metal"

you guys are the only one's who understand when i say the enemy are the corrupt-- on either side of the poverty line-- it's 'looters' that are the problem... it should make you nervous when the word 'productive' becomes a curse word

 

[Quimby]

Along the lines of this thread title...

Is what AirTran is doing in MKE to Midwest predatory? No one's brought this up.

 

[Jet41]

No offense to anyone on this post but I see hipocracy. In alot of ways what WN is doing to Frontier in DEN what Wal-Mart does to Middle-America or as a vulture does to a dying racoon. As pilots we justify it because we admire pilots compensation in that company and that WN has been succesful in its ventures. We usually blame the other company WN competes with as if WN has done no wrong. I disagree with that argument. WN just hits the coup de grace. It would be interesting if NOW a days they would find their OWN routes instead of flying routes to run other companies to the ground. Then again that what competition is all about. I hear regional guys hating CHQ or Skywest for doing the same thing WN does but they think WN is ok because they pay their pilots better. While I hope my current company keeps growing I would hate for the growth of my company to consist of the lay off of friends and former colleages. Just an opinion.

Southwest is only taking advantage of opportunities created by others. To not do so would be a disservice to it employee's and stock holders. They didn't create $145 a barrel, yet though forethought and planning they are able to take advantage of an opportunity presented buy the current situation. Good for them, too bad others didn't do the same. You Wal-Mart comparison is ridicules. Wal-Mart pays some of the lowest wages in their industry, while Southwest pays some of the highest in theirs.

 

[Flopgut]

Big "if" that arguement is based on....lots of "if"s in history...too many to cover here anyway....

Besides...what you mentioned is all ancient history. IF someone is still hanging on to a single airport for the DFW area...they need a new hobby.

Harding Lawrence and AA played a bigger part in Braniff's demise than SWA did....

...in fact, it was Harding Lawrence's decisions that put Braniff in the weak financial position it found itself in 1981/82.

Braniff even took SWA's CEO in 1982, Howard Putnam, since he had all kinds of airline management experience....that allowed the SWA board to elect Herb to be the CEO of SWA. Up until then, Herb was just SWA's attorney...not too much airline menagement experience.

It's not that big an "if" at all. Look at the Legend Airlines life cycle. They thought they could show up in the competitive vacuum of Love Field and find the same deal SWA got. They were wrong. AMR put the hurt on them. That is exactly what Braniff had in mind for SWA, until SWA got a boost outside the traditional marketplace. (BTW: if Legend had started with resources equivilent to what it would have required for a straight up fight with with AMR, they would have probably made it.)

By Alfred Kahn's own admission SWA is the single bright spot in deregulation's wake.

So, where's that leave us? We'd better make some wholesale changes in transportation policy IMHO.

 

[Andy Neill]

So, where's that leave us? We'd better make some wholesale changes in transportation policy IMHO.

....such as....?

 

[Mach 80]

>>>Wal-Mart pays some of the lowest wages in their industry,..<<<<

Many people who work at Wal-Mart are unqualified for any other work and many would otherwise be on welfare or simply not contributing anything to their family's financial well being. It may not be the highest paid job, but Wal-Mart has helped thousands of people have a much better life, both by employing so many and making things affordable for people who otherwise might not be able to buy clothes, shoes, and food for their families.

 

[Flopgut]

....such as....?

Reregulate. Or, at least revisit the RLA.

 

[waveflyer]

>>>Wal-Mart pays some of the lowest wages in their industry,..<<<<

Many people who work at Wal-Mart are unqualified for any other work and many would otherwise be on welfare or simply not contributing anything to their family's financial well being. It may not be the highest paid job, but Wal-Mart has helped thousands of people have a much better life, both by employing so many and making things affordable for people who otherwise might not be able to buy clothes, shoes, and food for their families.

sounds like a guy who doesn't work at wal-mart.
or a guy who wasn't flushed out of business by cheap, no labor law asia... but who cares about their kids, around the world, right? Also sounds like a guy who doesn't pay taxes in california and watch as the biggest retailer in the world gets subsidized health care on your dime.

Yeah- stand up company that wal-mart. I'm all for big business-- that doesn't mean all big-business lack corruption.... paid for, "legal" corruption is the WORST kind.

 

[Mach 80]

If there are high unemployment rates in a country and some of the people are earning an average of a $1 a day and some company comes in with a factory and gets those people off the street and earning $3 a day and they can now feed their families much better, their lives have improved dramaticaly. Much better off with the factories than not.

Otherwise, the US is a capitalistic competitive economy whether you like it or not.

 

[waveflyer]

If there are high unemployment rates in a country and some of the people are earning an average of a $1 a day and some company comes in with a factory and gets those people off the street and earning $3 a day and they can now feed their families much better, their lives have improved dramaticaly. Much better off with the factories than not.

Otherwise, the US is a capitalistic competitive economy whether you like it or not.

and you are very simplistic--

like saying if my owner only whips me 3 times a day that i should be thankful b/c my last whipped me 7.

glad the american dream has worked for you-- but i'm not anti-capitalist if i point out how it hasn't worked for others due to corruption

 

[LuckyDad]

Mach...
typically, wages don't "come up" to an arbitrary $3, as in your example, If the going rate for an unskilled laborer is $1/day, then in comes the new factory and pays the same. Thats why they build there. Companies unfortunately aren't trying to up the standard of living in India, Malysia, or where ever, they are trying to sell cheap skivvies in Arkansas. You might also revisit your thinking on Wal-Mart, since they have gained a lot of exposure for keeping employees at part time, to exclude the company from having to pay benifits on those same employees.