Southwest Mulls Growth Plans

Schwanker

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Dec 20, 2002
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Southwest Mulls Growth Plans

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By Elizabeth Souder,
Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--


Southwest Airlines Co. executives tentatively expect to add 10% more capacity to the network in 2005, but they are delaying final planning to see what happens with some of their competitors.

In fact, if a competitor like bankrupt US Airways Group Inc. liquidates, or some other large opportunity comes up, Southwest may double its growth plans, executives said.

"We have not made plans for next year because we are wondering if something is going to happen that's fairly dramatic and whether we would want to respond," said the airline's new chief executive, Gary Kelly, during a conference call Thursday. "We'll wait as late as we can - then we'll proceed with our natural growth plan."

That natural growth plan would involve growth in the airline's newest destination, Philadelphia, if Southwest can get more gate space. Otherwise, the airline could add from one to three new destinations, Kelly said.

Two issues may constrain growth: airplanes and oil prices.

If another airline liquidates, or some other large opportunity comes up, Southwest may have to scramble to get enough airplanes to take advantage of the situation. The airline will add 29 Boeing 737 airplanes to the fleet next year, and could digest a maximum of twice that growth, Kelly said.

"Doubling that is about as much - I would put that at the outside boundary - that we could contemplate," Kelly said. "That would be a lot of new people to train, deploy; a lot of new markets to develop."

He said he could just order more airplanes from Boeing if he is able to plan growth far enough in advance for the manufacturer to make the airplanes. Otherwise, Kelly said, he could buy or lease used airplanes, since Southwest gets frequent offers of used aircraft. Also, if another airline is pulling out of markets that Southwest wants to serve, Southwest could buy airplanes from that shrinking airline, so long as the aircraft are 737s. Southwest only flies 737s.

"We might have to spread our wings a little bit and add a little bit different aircraft type to our fleet," such as 737-800s, Kelly said. But he has no interest in buying airplanes outside of the 737 family because that would involve a second set of expenses, such as pilot training costs and maintenance costs.

Another issue that could constrain growth is high oil prices. Southwest Airlines has hedged 80% of its jet-fuel needs for next year. But adding more airplanes means adding to the airline's unhedged fuel needs, Kelly pointed out.

"It affects the way we think about expansion," he said. "I don't think we want to take too large a risk with the new markets. If there are some good aircraft deals out there, I think we would be interested. If the aircraft are expensive, I think we should pass in this environment."

The only specific growth Kelly mentioned was in Philadelphia, where Southwest operates out of four gates and has asked the airport for more. By the end of this month Southwest will be operating at full capacity in Philadelphia. Eventually, the airline would like to have as many as 25 gates, Kelly said. That is the sort of capacity Southwest might add if US Airways, which operates a hub in Philadelphia, liquidates, he said.

When asked how much the airline would like to grow in Philadelphia next year, Kelly said: "Could we double flights in Philadelphia? The answer is yes, if we had the gate capacity. If we did double it, would we open up a new city? I don't think so, because that (doubling in Philadelphia) would in essence be the equivalent of a couple of new cities."
 
Don't hate us because we fly regular folks who may not have lots of cash. That is why we have passed DAL for boarding more passengers than any airline in the US. Remember, "trashy" people have the same money as people more well off. Its real nice to call the people of Philly trashy, you have lots of class.

Don't go away mad, just go away. :p

Light Years said:
Well, I guess if any airlines matches Philly, it's trashy Southwest.
[post="192698"][/post]​
 
I used to live there, I can say it. It is trashy in a fun way. WN is just trashy. I don't care of it takes over the world. Still trashy!

And I was talking about the city. I didn't say anything about the people. Ooops, you did!

Gloating about people losing thier jobs... extremely trashy.
 
Light Years,

This is one thing that we do agree on. When I worked at People Express, I was especially troubled by this kind of attitude.

We all need to know these folks are the enemy, not our infighting amongst employee groups.

These folks (all of the other airlines) are salivating at the prospect of US Airways going away...lets not help them to have that come true.

Light Years said:
Gloating about people losing thier jobs... extremely trashy.
[post="192971"][/post]​
 
First off where did I gloat about losing jobs? I just re-read my previous post and have no clue to what you're talking about, but hey, neither do you!

To other posters on this bb, if the line about "light years" not going away mad just going way is what she was talking about then she is very incorrect. It is aimed at her to just go away, not about jobs. Im sure all of you, (except one), are intelligent enough to know what I was talking about. I have family members and many friends at U.

As for you light years, you can talk all the "trash" you want and spin it as you like, ie: "I was talking about the city not the people", and "trashy in a fun way", but it means what it means. I worked in Philly and think its a cool @ss town! Good party place and good folks, IMO.

Do you know who you sound like with all that spin and talking out of both sides of your mouth? One of the guys running for President....thats right, you're sounding like John Kerry......yuck, :down: .






Light Years said:
I used to live there, I can say it. It is trashy in a fun way. WN is just trashy. I don't care of it takes over the world. Still trashy!

And I was talking about the city. I didn't say anything about the people. Ooops, you did!

Gloating about people losing thier jobs... extremely trashy.
[post="192971"][/post]​
 
UseYourHead said:
These folks (all of the other airlines) are salivating at the prospect of US Airways going away...lets not help them to have that come true.
[post="192978"][/post]​
Salivating? What does it matter to the average employee here at WN whether or not US Airways goes under. Our paycheck will still be the same; still have to show up to work on time; no pizza parties planned. At best, U stays open no problem. At worse, if U does go under, you are welcome over here. Many of us all ready know many of you so what's the big deal? All are welcome, step into the light.
 
And this is why you will see a dramatic increase in PHL flying starting on FEB. No more gates = No more PHL expansion for SWA.

Cannot fault Airwways for that.

Not to mention said increase in flying into current capacity level = increased taxi in/out time. Not exactly what SWA likes in an airport.
 
Trashy Southwest?

I think it's trashy when other airlines creates turmoil and havoc and a nightmare in people's lives by dumping them on the street with no paycheck.

I think it's trashy when an airline streadily cuts employee's pay and benefits and lurches from one strategy to another.

I think it's trashy when an airline has a history of arrogant management who think their monopolistic market should allow them to charge ridiculously high fares and forget that those high fares and their hunger and absolute need for them (due to letting costs getting out of hand) will eventually leave them vulnerable. A basic lack of foreseeing the future and knowing market forces.

I think it's trashy when a company isn't managed well and uses generous bankruptcy laws to screw their investors, suppliers and employees. Some even do it more than once no less!

Southwest doesn't treat their employees like trash nor their customers. Their seat pitch is same as everyone else's...sometimes better. Their airplanes are usually newer. Their service is the same, and usually friendlier and more attentive than others. They are reliable and dependable with one of the lowest cancellation rates. The employee morale is high. Employees steadily gain in seniority and their paychecks grow larger. The fares and re-booking rates are fair. They let you sit anywhere ya want on the airplane on a fair basis.

From another part of this forum regarding USAirways: "Anyone happen to be over at B-con or C-con at PHL tonight (10/21)? I'm hearing it was fairly crazy over there. Some planes waited almost an hour once they landed for their gate. I heard from a co-worker that there was an annoucement at baggage claim that went something like this: "Attention Las Vegas passengers who came in on Flt. xxx, we will have a crew at the gate you arrived in about 30 minutes to unload your bags......." I'm sure those people were fairly pissed. "

Who's really the trashy airline? To call SWA trashy is absolutely ridiculous when you really look at the facts instead of spouting off some hugely erroneous perception on one's mind.
 
Rico said:
And this is why you will see a dramatic increase in PHL flying starting on FEB. No more gates = No more PHL expansion for SWA.

Cannot fault Airwways for that.

Not to mention said increase in flying into current capacity level = increased taxi in/out time. Not exactly what SWA likes in an airport.
[post="193725"][/post]​

Well there you go, everything will be just fine for U. We'll just go somewhere else then.
 
Rico said:
Not to mention said increase in flying into current capacity level = increased taxi in/out time. Not exactly what SWA likes in an airport.
[post="193725"][/post]​

Of course, that will affect what - 5% or less of WN's system operations? Versus 90% of U's. That's a strategy for success.

Jim
 
Rico said:
And this is why you will see a dramatic increase in PHL flying starting on FEB. No more gates = No more PHL expansion for SWA.

Cannot fault Airwways for that.

Not to mention said increase in flying into current capacity level = increased taxi in/out time. Not exactly what SWA likes in an airport.
[post="193725"][/post]​


Hate to inform you of this pal but if PHL wants SWA there and SWA wants to be there then there isn't anything you can do. You can take your toys and leave but it won't stop the machine, if its meant to be, sorry. I do not wish ill will on anyone, as I've said, but Im stating my opinion.

Bubbleboy, do you live in a bubble or is it just a divider between the rooms? Also, do you have control of the remote? Lastly, is it moops or moors? :lol: :blink: Oh yea, I forgot, were you ever in 28 Palms or at Camp Lejune in SC? ;)
 
WNjetdoc said:
Bubbleboy, do you live in a bubble or is it just a divider between the rooms? Also, do you have control of the remote? Lastly, is it moops or moors? :lol: :blink: Oh yea, I forgot, were you ever in 28 Palms or at Camp Lejune in SC? ;)
[post="193853"][/post]​
Quick Answers:
More like a bubble,
Yes,
It's a misprint-it should read moors,
I thought it was 30 Palms they planted one more,
No it was Parris Island NC, thats what it said on the travel broucher. Also, I read it wrong too, I thought it said "They promise you a rose garden".

Now questions for you Jetdoc: Is that your girl friend? Can she show me her..... Oh and remember what kind of person would pick on a bubble boy. Finally, is your real name Bob Cobb?
 
Cfm56 said:
Trashy Southwest?
Who's really the trashy airline? To call SWA trashy is absolutely ridiculous when you really look at the facts instead of spouting off some hugely erroneous perception on one's mind.




............. YOU FLY AROUND TRAILER TRASH. Ridiculous?....TURN ON A&E on Monday night. WATCH!!!
 
wnbubbleboy said:
Quick Answers:
More like a bubble,
Yes,
It's a misprint-it should read moors,
I thought it was 30 Palms they planted one more,
No it was Parris Island NC, thats what it said on the travel broucher. Also, I read it wrong too, I thought it said "They promise you a rose garden".

Now questions for you Jetdoc: Is that your girl friend? Can she show me her..... Oh and remember what kind of person would pick on a bubble boy. Finally, is your real name Bob Cobb?
[post="193908"][/post]​


Ha, ha, ha bubbleboy, "They promise you a rose garden", you're too funny. BTW, I have that poster in my garage. And yes my real name is Bob Cobb but please call me Maestro only, ok? You're a very bad man, very bad!! (index finger going back and forth).

Hey, does "she" know you're kicking back in your chair using the computer, watching TV and playing video games all the while having Howard Stern on the stereo? You are indeed a very bad man!

What was this thread about? Oh yea, some trashy trash talking ******* calling the people of Philly trashy, the town trashy and our airline trashy, :down: .
 

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