SWA to offer inflight wireless Internet access

[ivauir]

SWA might offer inflight wireless Internet access

Southwest CEO Gary Kelly, during the carrier's first-quarter earnings call last month, said it would solicit requests for proposals to offer inflight wireless Internet access. Kelly said Southwest is seeking to outfit a prototype with such service within the next nine months. A Southwest spokesperson would not say which companies the carrier would solicit in its requests. Kelly noted the move is part of a larger Southwest strategy to seek new sources of passenger revenue.
Southwest is exploring new add-ons and revenue streams that don't "create hard feelings from our customers," vice president of marketing, sales and distribution Kevin Krone recently told Business Travel News. Krone said Southwest would avoid following other airlines in monetizing offerings that currently are free.
"What else can we add of value that customers would be willing to pay for?" Krone said. "What we don't want to do is convince ourselves that Coke actually is an add-on."

 

[Sig]

TOTALLY UNRELATED TO THE TOPIC...

it's been, what- 15 years since I was in Kollidj, and as part of the ridiculous honors program I had to take Latin. Your signature...

If this (sentence) you can read (too much) education (has the reader)?

In other words, if I can read that, I'm overeducated?

*** Gee, Bob- Tell Sig what he's won by pulling his head out of his arse and googling the phrase!

Sorry for the hijack.

And, uh.. QED.

 

[capt. megadeth]

I hope it's free.

 

[Noserider76]

Southwest is exploring new add-ons and revenue streams that don't "create hard feelings from our customers," vice president of marketing, sales and distribution Kevin Krone recently told Business Travel News. Krone said Southwest would avoid following other airlines in monetizing offerings that currently are free.
"What else can we add of value that customers would be willing to pay for?" Krone said. "What we don't want to do is convince ourselves that Coke actually is an add-on."

I'm wondering why SWA doesn't seem to participate in raising fares when the opportunity comes up. The last few attempts at raising have been rolled back. All airlines have a similar cost structure now and it's not like SWA is making much of a profit. In the above quote the marketing VP wants to create new revenue streams, but how about charging the customer a bit higher rate for the ticket instead of subsidizing the high cost of fuel for him?
We can all be profitable or we can all plod along, because no company will be allowed to have a price advantage on competing routes. SWA is not making much with prices where they are now. No slam here, just wondering why airline companies don't cooperate and prosper as the oil companies seem to have done.

 

[mdf]

I'm wondering why SWA doesn't seem to participate in raising fares when the opportunity comes up. The last few attempts at raising have been rolled back. All airlines have a similar cost structure now and it's not like SWA is making much of a profit. In the above quote the marketing VP wants to create new revenue streams, but how about charging the customer a bit higher rate for the ticket instead of subsidizing the high cost of fuel for him?
We can all be profitable or we can all plod along, because no company will be allowed to have a price advantage on competing routes. SWA is not making much with prices where they are now. No slam here, just wondering why airline companies don't cooperate and prosper as the oil companies seem to have done.

It sounds like domestic demand is softening. I don't think we will be seeing price increases anytime soon.

 

[Noserider76]

It sounds like domestic demand is softening. I don't think we will be seeing price increases anytime soon.

I understand but will an additional $5-10 each way stop a person who's paying $3.50/gal of gas from flying? Who knows. I guess that's why the marketing gurus make the big bucks.

 

[ivauir]

TOTALLY UNRELATED TO THE TOPIC...

it's been, what- 15 years since I was in Kollidj, and as part of the ridiculous honors program I had to take Latin. Your signature...

If this (sentence) you can read (too much) education (has the reader)?

In other words, if I can read that, I'm overeducated?

*** Gee, Bob- Tell Sig what he's won by pulling his head out of his arse and googling the phrase!

Sorry for the hijack.

And, uh.. QED.

Sig you win a world famous No Prize!!!! Do you need any other usless knowledge? I have lousey grammer and spelling in many languages.

Now to unhijack the thread ....

It won't be free if I'm reading the signs right - we are looking for a way to generate more revenue without chargin people for what they now get for free.
The problem with a "free" service is that it becomes an expectation as part of the ticket price. If this is a fee based system, then if it is broken the customer won't be so PO'd.

 

[Sig]

Sig you win a world famous No Prize!!!! Do you need any other usless knowledge?

I tell ya, I'm chock full of useless. Hence, my career. ZING!

 

[Minimaniac]

The market apparently depends on people who want tickets under 100... if southwest were to raise fares and fares industry-wide went up, you would see the Clampettes just stay home. If fares continue to rise, the market as a whole will shrink, and one or more players are going to be sent home. While there is a lot to gain by surviving another carrier's demise though loss of market, no one wants to run the risk of being the loser. Everyone is going to charge just enough to stay afloat. when ticket prices find their limit (without rocking the market boat), airlines are just going to hunt for soft money and give the illusion of low overall cost to the consumer (buy our 58 dollar ticket!! Plus pay 10 dollars per checked bag, 15 dollars to reserve a specific seat- who wants to sit in the middle, anyways!- and a dollar per drink...). The airlines will continue to pretend to give the consumers what they want, while consumers who expect to get something for their money will continue to go home disappointed. The only people who will keep coming back are those who are happy to fly at all, and business travelers who have no choice.

 

[swa737-700]

I'm wondering why SWA doesn't seem to participate in raising fares when the opportunity comes up. The last few attempts at raising have been rolled back. All airlines have a similar cost structure now and it's not like SWA is making much of a profit. In the above quote the marketing VP wants to create new revenue streams, but how about charging the customer a bit higher rate for the ticket instead of subsidizing the high cost of fuel for him?
We can all be profitable or we can all plod along, because no company will be allowed to have a price advantage on competing routes. SWA is not making much with prices where they are now. No slam here, just wondering why airline companies don't cooperate and prosper as the oil companies seem to have done.

I think what you are wanting the airlines to do is illegal...something about price fixing.