why no SWA regional?

[Sticky]

OK...I still don't see any reason why SWA wouldn't benefit from some regional service. I know they're into the whole point-to-point system, but couldn't they still profit from having some regional service? I don't mean 50 seater jets, but some 20-30 seat turbos in CA or TX?

Most of the posts in this thread have been arguing whether SWA is a regional in itself.

 

[Coool Hand Luke]

OK...I still don't see any reason why SWA wouldn't benefit from some regional service. I know they're into the whole point-to-point system, but couldn't they still profit from having some regional service? I don't mean 50 seater jets, but some 20-30 seat turbos in CA or TX?

Most of the posts in this thread have been arguing whether SWA is a regional in itself.

I think you miss the whole point. Legacy carriers use regionals to feed the mainline system - in other words, to fill up their flights. Why would Southwest need a regional support network to feed their flights - their flights are already full. No need to pay (read = share profit) someone to put pax in seats when they can do it themselves just as easily and keep all the money.

Besides, the way Southwest see's it:

They can pay some reginal captain $50,000 a year to fly 50 pax at a time between PHX and LAX or they can pay one of their own Captains $150,000 to fly 150 pax at a time between PHX and LAX - what's the difference - so again, why not just do it themselves.

 

[Quimby]

OK...I still don't see any reason why SWA wouldn't benefit from some regional service. I know they're into the whole point-to-point system, but couldn't they still profit from having some regional service? I don't mean 50 seater jets, but some 20-30 seat turbos in CA or TX?

Most of the posts in this thread have been arguing whether SWA is a regional in itself.

If they thought it was needed, it would have been done by now (regarding having "regional feed").

 

[Speedtape]

The point of RJs is to feed a mainline's hub and fill up the big jets to London. RJs are meant to be a loss-leader.

Wrong! RJ's make money also. Look at the results of the regionals.

In a hub operation, every airplane is just another layer of flying, from bottom to top. Big Trees need a root system that is 3 times larger than the Big Tree. In a hub system, each component plays an integral part. Without feed, there would be no big jets to London, and visaversa! There is simply not enough O/D traffic in any gateway to make one route profitable, especially with any competition.

 

[Speedtape]

If they thought it was needed, it would have been done by now (regarding having "regional feed").

Southwest has continually assessed this issue for years. They have even gone as far as having rj manufacturers give presentations.

So far, the purpose was to evaluate the costs of their competition so they can plan the attack.

As mentioned, it is not the business model. Their business model is to stick with one aircraft model to obtain best cost efficiencies. Then, volume, volume, volume followed by frequency, frequency, frequency is their market approach. This allows for the cheapest fares. Southwest has succeeded by operating outside the box, assessing the habits of their competitors and implementing better practices, and doing things that no other competitor can do. Their cost structure and casm has remained low because of their continued growth.

 

[SiuDude]

Wrong! RJ's make money also. Look at the results of the regionals.

Wrong! The only reason regionals make money is because of "fee for departure." The CASM is really high for 50 seat jets.
I agree with the rest of your post though.

 

[Sticky]

I think you miss the whole point. Legacy carriers use regionals to feed the mainline system - in other words, to fill up their flights. Why would Southwest need a regional support network to feed their flights - their flights are already full. No need to pay (read = share profit) someone to put pax in seats when they can do it themselves just as easily and keep all the money.

Besides, the way Southwest see's it:

They can pay some reginal captain $50,000 a year to fly 50 pax at a time between PHX and LAX or they can pay one of their own Captains $150,000 to fly 150 pax at a time between PHX and LAX - what's the difference - so again, why not just do it themselves.

I see your point. Their flights are pretty full even without the help of a feeder service. And also, if they wanted or needed a regional service, it would have happend by now.

Good talk guys.

 

[YourPilotFriend]

People like SW because the SW employees give off a different energy than legacy employees, their employees like being there and that makes all the difference in the world, compare SW gate agents to the DAL or UAL old bitty with her attitude of entitlement, and the customer is bothering them vibe, that runs the customer away.

There is absolutely no correlation between customer service and load factors. SWa has the lowest load factor among the big ones ~70%, and NWA has the highest load factor ~90%. Passengers need to get from point A to B as cheaply as possible. The experience doesn't matter. Anyone who is willing to pay for the service will fly first class.

 

[CF34-3B1]

There is absolutely no correlation between customer service and load factors. SWa has the lowest load factor among the big ones ~70%, and NWA has the highest load factor ~90%. Passengers need to get from point A to B as cheaply as possible. The experience doesn't matter. Anyone who is willing to pay for the service will fly first class.

Not many people PAY for 1st class anymore. Free upgrades and nonrevs are usually who fills up first. People willing to pay any real amount of $ for service are flying on a fractional biz jet. That's (a small) part of what has diluted the revenue stream at the legacies.