The future of Southwest Airlines

[Ty Webb]

The rumors of our demise have been greatly exaggerated.

 

[Ky.BrownBourbn]

Charging for bags fixes it all....

Southwest won't lose money...period......time to move along.

(No Sniping Scoreboard......I'm on your side!)

"Mr. Lumberg, We need you to step in this office. Can you please fill the cup past the redline and place on the back of the toilet and DO NOT FLUSH the toilet!"

You are actually not bashing SW, I think it's time for a drug test...

NOW if General Flee does the same, FI is over, done, they might as well shut down this place down...

BUT we know that's not gonna happen, SHE can't keep quit if she tried!

Later,
KBB

 

[BILL LUMBERG]

Really Bourbon? lump me with GL?

I thought we were friends!

 

[fam62c]

Here is what we know about WN today.

1. Costs are way up
2. Legacy Airtran employees largely disgruntled
3. Loss in PHL to USAirways
4. Merger not going as planned
5. Losing to DL in ATL
6. Financial performance well below any peers.
7. Losses in Pac NW to Alaska
8. Hawaii opportunitys gone to DL AK and Allegiant
9. Loss of other markets to JB, Allegiant, and Spirt

WN is at a tipping pint. For a long time WN and its employees have not truely felt the pains of the industry. Does managements grand plan come together or do the wheels come off the bus?

SW just needs to decide what it wants to be now that is all grown up. They haven't had to adapt much in the past because they had a successful formula which still works but just not quite as well anymore. They still have a powerful domestic route system and a a large economy of scale as well as a strong balance sheet, they just need to figure out how to leverage their strengths against the competition. It seems like they are not as aggressive of a competitor as they once were.

From a business standpoint they are in a similar situation as WalMart. They have what was once a nearly perfect business concept that is now showing it's age as competitors are figuring out how to compete more effectively. The question is do they adapt and change with the times or go the way of Sears and eventually become irrelevant? I think in the case of SW the purchase of AT, even though the integration has been somewhat botched so far, is an indication of a willingness to acknowledge the need to adapt even though they may not be to the point of really embracing change yet.

 

[humveedriver]

Here is what we know about WN today.

1. Costs are way up
2. Legacy Airtran employees largely disgruntled
3. Loss in PHL to USAirways
4. Merger not going as planned
5. Losing to DL in ATL
6. Financial performance well below any peers.
7. Losses in Pac NW to Alaska
8. Hawaii opportunitys gone to DL AK and Allegiant
9. Loss of other markets to JB, Allegiant, and Spirt

WN is at a tipping pint. For a long time WN and its employees have not truely felt the pains of the industry. Does managements grand plan come together or do the wheels come off the bus?

It's refreshing to see a post about SWA from a SWA employee that is critical of the company. Doesn't mean it is negative, or bashing the company. But to think that SWA can operate the same way that they have in the past without the fuel advantage isn't very realistic. I don't doubt that SWA has a good formula for efficiency and customer service. But it isn't going to be enough. One of the oddest things about being associated with SWA without actually wearing their ID, is the unicorns and rainbows attitude that is so prevalent there. Now it appears as though the rank and file are beginning to acknowledge in forums such as this that it isn't all peaches and ice cream. My needs are small with this merger, a little honesty goes a long way. And since the GO or GK isn't going to provide it, I'll gladly take it from the employees.

 

[vixin]

They have what was once a nearly perfect business concept that is now showing it's age as competitors are figuring out how to compete more effectively

Yeah they figured it out all right. It's called bankruptcy and not having to pay the debts and obligations you agreed to.

Hum, I'll tell you this is the first time I have been concerned at SWA . The more the GO and GK touch things the worse it seems to be getting. They bit off more then they can chew for sure. Lets hope they get it figure out for we are just a mere cog in the machine. Between screwing up this integration to running away from all competition it is a little unnerving. I also don't think the purchases are not over. We will have to see what happens.

 

[laker4284]

Yeah they figured it out all right. It's called bankruptcy and not having to pay the debts and obligations you agreed to.

Hum, I'll tell you this is the first time I have been concerned at SWA . The more the GO and GK touch things the worse it seems to be getting. They bit off more then they can chew for sure. Lets hope they get it figure out for we are just a mere cog in the machine. Between screwing up this integration to running away from all competition it is a little unnerving. I also don't think the purchases are not over. We will have to see what happens.

Are you sure the problem is Kelly?

With the legacy carriers stripping away chubby contracts and onerous debt they have dropped their costs significantly. Bankruptcy also gave them freedom to fix their fleet model and the mix of business-domestic and international-domestic. Mergers brought new connections and dynamics. That was some serious streamlining that was not needed (or done) at SWA (with the exception of AT).

Strategically the acquisition of Air Tran made sense. On the shorter term or tactical level melding AT into SWA is painful and expensive. Back when SWA bought and absorbed Morris it really stirred things up and cost a lot of money for two or three years before it paid off. But it DID pay off.

Lastly, SWA made a decision to forego fees in order to (hopefully) enlarge market share. That does not seem to have paid off. The company, however, still can initiate fees and rake in serious cash. They can do that at any time and Kelly has said it was something that they would look at.

There's lots of room for more revenue and the synergies from AT are not yet realised. I'd say Kelly has been moving the company into a new environment, something that takes time (and lots of changes).

Accordingly, Kelly cannot be fairly compared to the beloved Kelleher.

 

[Ops check good]

They should start allowing regional feed.

 

[vixin]

Hence the reason why I mentioned their bankruptcy.

 

[Whataburger]

They should start allowing regional feed.

Definetly what we need!!