OT: WN ANNOUNCES NEXT CITY
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coolflyingfool
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With only 2 gates to start, not much damage will be done. UA will match the fares, but only on same time departures to the same cities, which I will exspect to be MDW, MCO, and TPA. just my thoughts....
True - only two gates now, only enough for 14-20 daily flights. Won't take that many more gates to support 150 daily flights. Given the aggressive aircraft delivery schedule at WN, won't take too many years to get to that point, either.
CapnCockroach
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Too cool. First, run USAir out of BWI, now UAL out of IAD. I like it!!
Cheap $$ airfares are good! Keep it up!! Is this called the "let's surround them" strategy? (Ronald Reagan next?)
Just who do you think is surrounding who? SWA is picking a fight with the whole industry, AWA in PHX and other places, AMR in Texas, CAL in Houston, Alaska in Seattle, UAL in IAD...
Guess what, the bullseye that is supposedly on Dulles is maybe shifting...
SWA has very little political influence, very little going for it except fuel hedges.
Gary Kelly can give all the interviews he wants, at the end of the day, SWA's best days are in the past IMO.
Bring it on...
JBG
KCFlyer
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Yeah...if it gets too much worse, they can always spend 3 or so years free from the fear of forced liquidation by their creditors and emerge a "lean mean competi'n machine".
No, one of the real problems with the SWA model is without the fuel hedge it looks a lot like any other narrow body operation. No real value to it except it's low cost. If things got that bad, which they are admittedly a long way away from, the trip would not be that long...Besides they can just sell a LOT those airplanes to keep out of court.
It is a common story in the airline business, overexpansion usually causes problems sooner or later.
Fuel hedges expiring every day....
JBG
whatkindoffreshhell
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This is tooooo rich!!
The WN competitive advantage vs ANYONE else goes way way beyond fuel hedges.
I want some of the medications you're on....
Exactly. WN's CASM (ex-fuel) is more than a penny less than UA's, according to the UA 8-K containing all the colorful pie charts issued around the time of BK exit.
No matter if fuel is $0.10/gal or $10/gal, WN has the advantage. B)
You all are a bunch of simpletons. UAL vs LUV is more complex than CASM, what do you think your silly comparison would look like if UAL pulled out economy plus? Also, all those SWA employee raises are not factored into your numbers.
I love your attitude as you think LUV has it made forever, do us all a favor and keep believing that. The rest of the industry will appreciate it as well I would believe.
Where will you move your corporate HQ if PHX starts to do something for US Air????
JBG
KCFlyer
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I guess Chicago...especially if UAL's business plan of undercutting LCC's pricing causes them to fold. Seems like there'd be a big hole there.
ClueByFour
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Given the fact that LUV continues to add aircraft, it's entirely possible that their non-fuel CASM will (continue to) drop year-over-year.
convair880
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"Bring it on..."
Sounds just like what USAir said when SWA announced BWI and when UAL Shuttle was cranked up out West.
If you think SWA's only advantage is fuel hedging you need to get a hold of the April 3 issue of 'Aviation Week and Space Technology' magazine and check out page 45: "Hedging Isn't the Only Reason for Southwest's Low Costs".
The management at SWA is so far ahead of any other airline management that it isn't funny.
Sounds just like what USAir said when SWA announced BWI and when UAL Shuttle was cranked up out West.
If you think SWA's only advantage is fuel hedging you need to get a hold of the April 3 issue of 'Aviation Week and Space Technology' magazine and check out page 45: "Hedging Isn't the Only Reason for Southwest's Low Costs".
The management at SWA is so far ahead of any other airline management that it isn't funny.
Despite your cheerleading for SWA, their costs have been rising more than many airlines out there. With pilot raises of 10 percent recently while others are reducing rates - they are simply losing their cost advanatage. One of the problems with a point to point operation is that with all the ground time, it is inherently less eficient than longer haul, also the lack of a revenue premium is coming to bear as well. Jetblue's recent fall from grace should be an example of overexpansion and the resulting problems associated. In the past SWA would never have gone into DIA or IAD, now they have to pursue higher revenue customers to support an ever increasing cost structure. They will begin to make noises about labor costs after the contracts at NWA and DAL are finalized. Those deliveries will be in part deferred in the future as well.
Just simply continue to believe, it will make it easier for the rest of us.
"SWA vs the world, taking on all comers!!!"
We will see...
JBG
