FORT WORTH, Texas (Dow Jones)--Top executives with three U.S. airlines Monday said they continue to struggle to find ways to cut the amount of time it takes passengers to go through airport security.
As air traffic rises during peak travel months this summer, some industry experts say passengers could face long lines, which could cause people to miss their flights or their connections.
"That's something we're going to have to watch," said Southwest Airlines Co.(NYSE:LUV) ( LUV) Chief Executive Jim Parker. "It really is a foxhole by foxhole battle, an airport by airport battle."
Parker, speaking on a panel of three airline executives at a Society of American Business Editors and Writers conference, said the airline is working with the Transportation Security Administration at the airport level to make security checks more efficient.
Continental Airlines Inc.(NYSE:CAL) (CAL) Chief Executive Gordon Bethune said he's urged the TSA, which is in charge of security checks, to come up with a set amount of time it takes to process passengers at security checkpoints, so that airlines can plan their routes and connections accordingly.
"We've asked for standards to be set," he said, but the TSA hasn't provided any standard.
AMR Corp.(NYSE:AMR) (AMR) Chief Executive Gerard Arpey said his strategy is to keep things running smoothly for passengers for the parts of their travel that AMR controls, hopefully offsetting any extra time spent in the security lines, which AMR doesn't control.
Two of the three executives from Texas airlines predicted there will be fewer airlines in time, as the most unprofitable carriers slowly die, losing to the more nimble airlines.
"There's no reason to have six hub-and-spoke carriers, but you have to have that system if you want to get to Lafayette, Louisiana," Continental's Bethune said. Network carriers have traditionally served small towns, while low-cost carriers fly between larger cities.
AMR's Arpey agreed: "You don't need that many airlines to get low fares."
But Southwest's Parker said he can't predict whether the number of airlines will fall or rise. He said barriers to enter the airline industry are low, prompting new start-up airlines that could sprout up to replace any carriers that fail.
None of the three executives said his airline would install new televisions or entertainment systems in its fleet.
"Those are nice things, but if we lose your bag, it doesn't matter," Bethune said. He said Continental focuses on "getting you safely, on time, with your underwear, to your destination."
Arpey said many American Airlines customers bring their own entertainment with them on the airplanes on laptop computers and other devices. Therefore, American is installing power ports on airplanes, rather than televisions.
Later, in an interview with Dow Jones Newswires, Arpey said he's trying to figure out what passengers are willing to pay for.
Arpey also said American is attempting to simplify its operations as much as possible.
"For years we allowed complexities in to our company to chase revenue," Arpey said. He added that the more complex a business is, the more opportunities the business has for problems and failures.
Arpey said AMR's liquidity position now is much better than when he took the reins a year ago as AMR came close to filing for bankruptcy. Still, high fuel prices are preventing AMR from reaping the full benefits of the liquidity boost and cost cuts the airline has implemented.
"We thought at this point we would be building more momentum than we are," he said.
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As air traffic rises during peak travel months this summer, some industry experts say passengers could face long lines, which could cause people to miss their flights or their connections.
"That's something we're going to have to watch," said Southwest Airlines Co.(NYSE:LUV) ( LUV) Chief Executive Jim Parker. "It really is a foxhole by foxhole battle, an airport by airport battle."
Parker, speaking on a panel of three airline executives at a Society of American Business Editors and Writers conference, said the airline is working with the Transportation Security Administration at the airport level to make security checks more efficient.
Continental Airlines Inc.(NYSE:CAL) (CAL) Chief Executive Gordon Bethune said he's urged the TSA, which is in charge of security checks, to come up with a set amount of time it takes to process passengers at security checkpoints, so that airlines can plan their routes and connections accordingly.
"We've asked for standards to be set," he said, but the TSA hasn't provided any standard.
AMR Corp.(NYSE:AMR) (AMR) Chief Executive Gerard Arpey said his strategy is to keep things running smoothly for passengers for the parts of their travel that AMR controls, hopefully offsetting any extra time spent in the security lines, which AMR doesn't control.
Two of the three executives from Texas airlines predicted there will be fewer airlines in time, as the most unprofitable carriers slowly die, losing to the more nimble airlines.
"There's no reason to have six hub-and-spoke carriers, but you have to have that system if you want to get to Lafayette, Louisiana," Continental's Bethune said. Network carriers have traditionally served small towns, while low-cost carriers fly between larger cities.
AMR's Arpey agreed: "You don't need that many airlines to get low fares."
But Southwest's Parker said he can't predict whether the number of airlines will fall or rise. He said barriers to enter the airline industry are low, prompting new start-up airlines that could sprout up to replace any carriers that fail.
None of the three executives said his airline would install new televisions or entertainment systems in its fleet.
"Those are nice things, but if we lose your bag, it doesn't matter," Bethune said. He said Continental focuses on "getting you safely, on time, with your underwear, to your destination."
Arpey said many American Airlines customers bring their own entertainment with them on the airplanes on laptop computers and other devices. Therefore, American is installing power ports on airplanes, rather than televisions.
Later, in an interview with Dow Jones Newswires, Arpey said he's trying to figure out what passengers are willing to pay for.
Arpey also said American is attempting to simplify its operations as much as possible.
"For years we allowed complexities in to our company to chase revenue," Arpey said. He added that the more complex a business is, the more opportunities the business has for problems and failures.
Arpey said AMR's liquidity position now is much better than when he took the reins a year ago as AMR came close to filing for bankruptcy. Still, high fuel prices are preventing AMR from reaping the full benefits of the liquidity boost and cost cuts the airline has implemented.
"We thought at this point we would be building more momentum than we are," he said.
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