Southwest may go Airbus
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jimntx
Veteran
Given the deal that AMR was able to extract from both of them in competition with each other, are you surprised? WN would be foolish to refuse to at least look, kick a few tires, talk in generalities with AB.
QA4Jet-A
Veteran
... or give Boeing a 'Wake Up' call
h34r:jimntx
Veteran
Exactamente! When I was at Texaco in the Information Technology Department, it was a given that when buying computers, if the cabinets did not come in blue (i.e., IBM), Texaco was not going to buy it. Texaco in Houston had the first IBM mainframe west of the Mississippi River back when.
When desktop computers (now known as PCs) came along, IBM's PC group did nothing to endear itself to the head of the IT department because they knew that Texaco would never buy anything other than IBM equipment. They treated us with a certain level of contempt almost. Imagine the shock (and the heads rolling) when the Texaco IT department ordered a complete replacement of all desktop computers with Dell equipment!
If nothing else, WN can let Boeing know that they are not a slam dunk customer for the future.
When desktop computers (now known as PCs) came along, IBM's PC group did nothing to endear itself to the head of the IT department because they knew that Texaco would never buy anything other than IBM equipment. They treated us with a certain level of contempt almost. Imagine the shock (and the heads rolling) when the Texaco IT department ordered a complete replacement of all desktop computers with Dell equipment!
If nothing else, WN can let Boeing know that they are not a slam dunk customer for the future.
SharoninSAT
Veteran
does this plane go to paris
Senior
I'm sure that Sharon and others have heard this business lesson and it's phunny as well.
Back in the early 90's. WN was looking at a replacement for the 737-300 and -500's and AB and Boeing were both knocking on the door.
Herb and a group flew to France and were given a grand treatment by the Airbus folks. It was communicated that Herb liked trinkets and a special gold plated cigarette lighter was presented to Herb with his initials and Airbus insignia.
A few weeks later, a trip was made up to Seattle and talks were going on and the group broke up for the day. Everyone was leaving and halfway down the hallway, Herb stopped and said that he left his lighter back at the table so a Boeing Executive said he'd go get it. You can only imagine the look on his face. WN was the launch customer for the -700's.
Back in the early 90's. WN was looking at a replacement for the 737-300 and -500's and AB and Boeing were both knocking on the door.
Herb and a group flew to France and were given a grand treatment by the Airbus folks. It was communicated that Herb liked trinkets and a special gold plated cigarette lighter was presented to Herb with his initials and Airbus insignia.
A few weeks later, a trip was made up to Seattle and talks were going on and the group broke up for the day. Everyone was leaving and halfway down the hallway, Herb stopped and said that he left his lighter back at the table so a Boeing Executive said he'd go get it. You can only imagine the look on his face. WN was the launch customer for the -700's.
WorldTraveler
Corn Field
- Dec 5, 2003
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WN has said as much that their first intention is to do a deal with Boeing.
It may also be that Boeing didn't get as worked up about the Airbus deal since AA can't put the planes into service until a new pilot contract is signed.... thus the Airbus deal for AA is not as muich of a risk for Boeing as originally thought...
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In other WN news, they just reported their July consolidated load factor and RASM estimate for the month of July; their estimated RASM growth for July was just 1% - one day after reporting financial results for the 2nd quarter that missed Wall Street estimates - and WN reported RASM growth that was lower than almost all of the rest of the industry.
In the earnings announcement, WN said it would be reworking growth plans and expected little to no growth in the year ahead as they focus on getting the FL and WN networks integrated - just days after FL announced the closure of 4 cities.
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Given that LUV already has Boeings on order, the need to replace aircraft just got pushed back a bit further.
jimntx
Veteran
Run out of "yeah Delta" things to post again? You've have already gleefully posted the above word for word on another thread. For someone who is "not worried about WN coming to ATL", you sure don't miss an opportunity to post something negative about them. Since you commune with the gods, why bother with little ole WN?
WorldTraveler
Corn Field
- Dec 5, 2003
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simply the truth.... where it shows up doesn't change it.
Glad to hear that you are keeping up w/ what I am writing. <_<
What the last two days show is that WN is not a god and operates on the same business principles as the rest of the industry... .sometimes you have to slow down your strategies based on market realities - and that may well mean needing alot less aircraft in the process.
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If those realities limit WN's abilities to expand on the east coast - including adding capacity in ATL as many here have suggested - perhaps even you - then that is just the brutal reality of the business world.
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WN is run by some pretty bright people... they'll figure out how to adapt and accomplish what they want, even if they can't grow as much as some people wanted.
FrugalFlyerv2.0
Veteran
- Oct 29, 2003
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Not so fast on those Airbus rumors.
Southwest CEO Gary Kelly appears to have thrown a bit of cold water on a Reuters report out this week that said Southwest may be opening the door to talks with Airbus.
"There is no truth to that at all," Kelly says in an interview with FOX Business, according to the Seattle Post-Intelligencer.
Still, he's quoted by the Morning News as saying:
If they don't (meet Southwest's needs), well then, it's a free country and we'll consider whatever options we have. But our focus at this point is -- and has been, despite some of the more humorous media reports here recently -- it continues to be with the Boeing Company.
The Morning News adds "that jab at the media apparently stems from (the) Reuters story out this week" that ratcheted up the Airbus rumors in the first place.
USA Today story
Southwest CEO Gary Kelly appears to have thrown a bit of cold water on a Reuters report out this week that said Southwest may be opening the door to talks with Airbus.
"There is no truth to that at all," Kelly says in an interview with FOX Business, according to the Seattle Post-Intelligencer.
Still, he's quoted by the Morning News as saying:
If they don't (meet Southwest's needs), well then, it's a free country and we'll consider whatever options we have. But our focus at this point is -- and has been, despite some of the more humorous media reports here recently -- it continues to be with the Boeing Company.
The Morning News adds "that jab at the media apparently stems from (the) Reuters story out this week" that ratcheted up the Airbus rumors in the first place.
USA Today story
WorldTraveler
Corn Field
- Dec 5, 2003
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precisely... WN has every reason to work w/ Boeing to get the plane they want without the cost of adding a 2nd type of fleet - or now 3rd including the 717. WN has no urgency to replace older aircraft faster than WN has delivery positions reserved, the 737 is still pretty close to cost competitive even with the 320neo (and a reengined 737 will keep it that way), and LUV has the financial strength to buy w/o the strings attached that AA will have if its deal goes through.
It is highly unlikely that Boeing will allow LUV to defect to Airbus.
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LUV did announce today a stock repurchase program for about 8% of the current outstanding market value of the company - indications that expectations a stock rebound are not likely.
For the 2nd day in a row, LUV had the highest percentage declines among large US airline stocks.
QA4Jet-A
Veteran
Yep, by Two weeks... The Classics will eventually go away to a Foreign Country of your choice!
SharoninSAT
Veteran
I have heard that story Paris, and it was a great business lesson...
A Herb Classic
. We launched the 700's in 1997.
