The future of Southwest Airlines

[Donald]

As for "single toughest time in airline history", you mean SW Airline history right? Otherwise it's a bit myopic....

You can only be the underdog, low cost, under cutting, market stealing new entrant airline until your not.... but at least you still have Clark Howard and the Motley Fool rooting for ya

welcome to the "legacies" SWA likes to complain about.

LUV

We still need to go bankrupt a few times and get a few Federal bailouts before we are truly a legacy.

 

[Whataburger]

Just wait until the hedges run out!

 

[Ty Webb]

Rumors of our (pending) demise have been greatly exaggerated.

-with apologies to Mark Twain

 

[igneousy2]

The unintended consequence, however, of adding bag fees is losing marketshare.

That is turning out not to be true in the part of the market that matters.

Bag fees aren't charged to an airlines most important customers (i.e. golds, pax with paid, business-men with just a roll-a-board, etc.) so all those cute SWA commercials and the signs on the planes mean nothing to them who are still the bread and butter of the legacies.

Ironically, charging a bag fee lets the airline waive the fee, which increases the importance of being a gold or whatever at a legacy, making it even less likely that SWA will steal them away.

As far as the people on the rest of the plane go, they are the most price sensitve and if they see a $199 at SWA and a $169 at Alaska, a large number will almost instinctively buy the ticket on Alaska even though if you travel with 2 bags you are effectively paying more on Alaska ($220).

To make matters worse for SWA, the businessman that is only traveling with his carry-on is going to make the Alaska fare a real bargain.

I don't think SWA's next step from here is a bag fee though. I think SWA's next move will be a super-discounted fare, if you agree to not fly with any bags. Kind of a reverse fee.

 

[jonjuan]

That is turning out not to be true in the part of the market that matters.

Bag fees aren't charged to an airlines most important customers (i.e. golds, pax with paid, business-men with just a roll-a-board, etc.) so all those cute SWA commercials and the signs on the planes mean nothing to them who are still the bread and butter of the legacies.

Ironically, charging a bag fee lets the airline waive the fee, which increases the importance of being a gold or whatever at a legacy, making it even less likely that SWA will steal them away.

As far as the people on the rest of the plane go, they are the most price sensitve and if they see a $199 at SWA and a $169 at Alaska, a large number will almost instinctively buy the ticket on Alaska even though if you travel with 2 bags you are effectively paying more on Alaska ($220).

To make matters worse for SWA, the businessman that is only traveling with his carry-on is going to make the Alaska fare a real bargain.

I don't think SWA's next step from here is a bag fee though. I think SWA's next move will be a super-discounted fare, if you agree to not fly with any bags. Kind of a reverse fee.

If what you've said were logical, why spend hundreds of millions advertising the no fees? Truth is, SWA is very interested in keeping this market share from the legacies.

 

[SWA Bubba]

Lol-my Mother-in-Law when she's drunk and is losing an argument yells, "You know what?" Keep it up, Bubba. :bawling:
Actually, she also says it multiple times too. Are you my mother in law?uke:

No; actually, I've done some genealogy research, and discovered that you and I are NOT related. In fact, when I say my bedtime prayers each night, one of the many, many things that I'm thankful for is the fact that I am NOT related to Jonjuan in any way, shape or form. :beer:

Bubba

 

[Full of LUV]

We still need to go bankrupt a few times and get a few Federal bailouts before we are truly a legacy.

Got the BK's, but what "federal bailout" are you talking about???? Other than the ATSB (right after 2001 loan guarantees that went to America West and a couple of other SMALL airlines and were actually repaid) and the PBGC taking over the pensions I am unaware of any fed money being spent on the legacy's behalf, certainly not "bailing anyone out". In fact ask the average PBGC recipient if they feel bailed out, turns out those pension promises were impossible to keep.

Bottom line is though that I hope SWA thrives and continues to set the example for even the legacies to follow on how to make profits, pay employees nicely with annual raises, maintain a pleasant working environment, and have nothing but smooth landings going forward. No ill will, just observing that the next 20 years for SWA or any other airline, will not be like the last 20 years.
LUV

 

[dicko]

You know what? I've been reading your posts for quite a while, and do you know what I've discovered? I didn't think you're full of luv at all...

Bubba

To quote a now infamous AirTran pilots response to Gary Kelly on the subject of LUV - "Yeah, more like prison love".

(AirTran pilots dinner with SWA management, Atlanta 2012)

 

[tankerhead]

I bet that went over like a fart in church.