What's going on at LUV?

[waveflyer]

pilotyip-- are you saying that they doubled the cost of that particular flight in response to our TA?

 

[Red Baron]

In the end the consumer determines what price a seat will sell for, without sales you don't fill the seats.

I agree with you, it's basic economics. Our management is filling seats with one sale after another. They would rather see someone in a seat than letting it fly empty. It is working. I am sure they look forward to a stonger market and better yields. When that happens, who knows.

 

[firstthird]

The problem is with the continual 137 loads. you can't sell the businessman the BS fare as a walkup if the plane is already full. We've traditionally run much lower LFs and still made money. really high LFs also stress the system. you can't 'catch up' if a plane goes down. rampers, agents, FAs, everyone works much harder. if we're making money, okay, we do what we have to do. if we are selling tickets below cost, that is not a long term business strategy that has high odds of success.

 

[Whine Lover]

deleted

 

[pilotyip]

Nope only timing

pilotyip-- are you saying that they doubled the cost of that particular flight in response to our TA?

There may be connection, but I am only guessing, the big fare jump came at the same time. Wasn't it about the same time there was talk of charging for extra bags and changing tickets. Was the company looking for more revenue? I only know about that particular city pair, because my wife shops it for deals all the time. But I also know SWA lost 3 RT's DTW-ABQ during the last three months because of being above the competition during that time frame.

 

[glasspilot]

The problem is with the continual 137 loads. you can't sell the businessman the BS fare as a walkup...

Nice theory, except businessmen don't fly SWA.

 

[maxblast72]

There is alot of excess capacity in the market now causing low fares to be the norm to fill airplanes up. Until, some of that capacity is removed or some airlines leave the market place, well run companies including Southwest will struggle to make money in the current revenue environment. In this environment, cost of production is everything.

20 years ago, Southwest airlines was the lowest cost producer. Today Southwest is still a low cost producer and efficient airline, but they have to compete with airlines like Jetblue and Airtran who can produce the same product (if not better) for less cost. Now that the fuel hedges benefits are gone, Southwest isn't the lowest cost producer anymore.

 

[Benjamin Dover]

There are 2 problems. 1. The ceo is a bean counter and refuses to look past the balance sheet. 2. FO's that are having a hard time dealing/accepting reality.

How about this for reality - over 1000 CAPTAINS voted against the TA

 

[Falcon Jet 1]

How about the fact Kelly bought 2Billion worth of stock back at 14.23, and now it is hovering around 7. How would you like to look in the mirror in the morning after that f--k up.

 

[vance]

I think there are too many with "bean-counter" envy. Gary Kelly is the boss until the BOD says otherwise or he quits/ retires. Larry Kellner left for a better job (I'm sure in his estimation). If Gary would leave, who would step up, and would they be any less a bean-counter? As a matter of fact, please enlighten me as to who isn't a bean-counter these days?

SmartMoney showed Gary as an Underpaid CEO this year. I'm sure the stock could be worth a lot, but at $6 a share it will be a while til WS shows us the love again. Gary took a pay cut and the other leaders took a pay freeze. So while it's easy to sit on FI and divulge as much SWA/ SWAPA internal information and bag on Gary, why not take a minute and tell us who the boogyman really is. I love it when I hear guys complain about the Company not telling us anything. Gee, I wonder why?