WN cuts costs its own way, USAToday.

WNjetdoc

Veteran
Aug 20, 2002
532
0
www.usaviation.com
Updated 7 a.m. - Wednesday
Southwest finds its own way to cut costs
Leave it to Southwest to buck an industry trend. The largest airlines have laid off thousands of employees, cut flights and parked airplanes, and United is looking to employees for $5.8 billion in wage concessions. But, Southwest has managed to dramatically cut costs without many of the draconian measures taken by its big-name competitors. Instead, the discount carrier has trimmed its expenses in other ways, such as by renegotiating key contracts with suppliers, changing the way it fuels airplanes at certain airports, and putting in place a hiring freeze at its Dallas corporate headquarters, according to the Fort Worth Star-Telegram. The airline has also attempted to boost its efficiency in baggage handling to reduce number of claims — and costs — for lost luggage. So far, the carrier''s moves have paid off. Southwest has been able to reduce its annual costs by about $120 million, all while continuing to add flights and without any layoffs. Southwest is the only one of the nation''s top 10 airlines to remain profitable.
 
Aug 20, 2002
1,423
90
Valhalla
www.usaviation.com
Continuous improvement, or 'kaizen' as our Japanese competitors call it, is a daily practice. Kaizen is a mindset.

This is why WN has been a constant winner. WN's competitors only attempt kaizen when threatened and then once they get comfortable again it is back to the old me-first thinking.

Have you noticed that WN is the only airline making a push for greater market share via television advertising? And their commercials are sharp and focused. Kaizen.

Thanks for the previous post, good stuff.
 

Busdrvr

Veteran
Aug 20, 2002
2,217
0
[blockquote]
----------------
On 11/6/2002 10:11:55 AM whatkindoffreshhell wrote:

Continuous improvement, or 'kaizen' as our Japanese competitors call it, is a daily practice. Kaizen is a mindset.

----------------
[/blockquote]

How's that kaizen economy been doing lately? Remember not so long ago when all the ANALyst thought the Japanese economy would be larger than the US's in no time? But the big dog woke up!
 

Rhino

Senior
Aug 20, 2002
308
0
Busdrvr, why are you such a gadfly?

You work for the worst-run, most over-paid airline in the history of the world. Then you continually post disparaging, though ill-informed, remarks about JB and WN.

You're just a Cincy Bengal talking smack to the Green Bay Packers. You're too stupid to be labeled a cretin, you're sub-normal, as the Brits would say.

I normally am very empathetic toward airline employees who chose the wrong horse. I don't believe anyone I've met in this business deserves to walk the street as much as you, however. Tell us again what great, new equipment and routes you fly. Or used to. I suspect you're jerking gear on 737s by now.
 
OP
WNjetdoc

WNjetdoc

Veteran
Aug 20, 2002
532
0
www.usaviation.com
[blockquote]
----------------
On 11/7/2002 12:34:33 AM Rhino wrote:

Busdrvr, why are you such a gadfly?

You work for the worst-run, most over-paid airline in the history of the world. Then you continually post disparaging, though ill-informed, remarks about JB and WN.

You're just a Cincy Bengal talking smack to the Green Bay Packers. You're too stupid to be labeled a cretin, you're sub-normal, as the Brits would say.

I normally am very empathetic toward airline employees who chose the wrong horse. I don't believe anyone I've met in this business deserves to walk the street as much as you, however. Tell us again what great, new equipment and routes you fly. Or used to. I suspect you're jerking gear on 737s by now.
----------------
[/blockquote]
Rhino, good post. Do like I do when it comes do busdrvr, ignore his arse. He visits other boards and posts crap like he does on ours. Craves attention is my take on him, lol.
 

ChairPrefRes

Member
Aug 19, 2002
89
0
I hope KC doesnt find me over here...but I just attended a LUV career fair in RDU and was quite impressed with SWA... The empoyee packages including benefits is better than what USairways has... As a result of the USAir chopping... my last day in CHP res will be DEC 7...What a fittng day...Anyway the hard work fast turn philosophy that SWA uses was very similar to what Piedmont did back in the 80's A very proven approach...(If the majors dont start figuring out how to reinvent there business plans, there will be more than just USAirways dissolved in a short time)...I expect SWA to become the Number 1 US carrier in just 3-5 years...Impressive Huh!!!...Anyways I hope to get that magic call back within a few weeks but I also suspect that everyone is going to try to suck it up for a long cold winter and it might happen later on...Best of luck to LUV employees and hope to see you soon...
 

KCFlyer

Veteran
Aug 20, 2002
10,697
1,324
www.usaviation.com
[P]
[BLOCKQUOTE][BR]----------------[BR]On 11/7/2002 10:08:15 AM ChairPrefRes wrote:
[P]I hope KC doesnt find me over here...[/P]
[P]----------------[/P][/BLOCKQUOTE]
[P]I found you
P]
 
OP
WNjetdoc

WNjetdoc

Veteran
Aug 20, 2002
532
0
www.usaviation.com
[blockquote]
----------------
On 11/7/2002 11:07:29 AM longonsofty wrote:

ChairPrefRes

check your pm's.
----------------
[/blockquote]
Hey Softy dude, I've had a rough few weeks over on the yahoo football pool. I hope to get it together this sunday. Glad to see you pick up that first win, maybe you're on a roll now? REDbelliedSKINS.
 

Busdrvr

Veteran
Aug 20, 2002
2,217
0
[blockquote]
----------------
On 11/7/2002 12:34:33 AM Rhino wrote:

Busdrvr, why are you such a gadfly?

You work for the worst-run, most over-paid airline in the history of the world. Then you continually post disparaging, though ill-informed, remarks about JB and WN.

Latest headline:
Southwest CFO sees upward pressure on unit costs
What in my post said something bad about SWA. But you must come back with an extremely inflammitory responses. What have i posted about SWA that's not factually correct? While you're at it Rhino, why don't you tell your trusting pax about your new after start procedures and why you are starting them?

----------------
[/blockquote]
 

BZuschman

Newbie
Oct 1, 2002
4
0
[blockquote]
----------------
On 11/7/2002 11:06:30 AM KCFlyer wrote:



[BLOCKQUOTE]
----------------
On 11/7/2002 10:08:15 AM ChairPrefRes wrote:


I hope KC doesnt find me over here...[/P]


----------------[/P][/BLOCKQUOTE]


I found you . There's no denying that I'm a big fan of LUV, and while I am crtitcal of the other airlines, it's mostly because they are doing nothing to try to increase demand....all they are doing is reducing supply. SWA is being aggressive at trying to improve demand in rough times. When things pick up, I imagine the $299 maximum one way fares will go up...but they are willing to risk a lower yield for now to make a profit, instead of hoping for a higher yield by cutting staff, flights, service, and everything else. Good luck to you, and I hope you hear from LUV soon. [/P]
----------------
[/blockquote]
Of course they are reducing supply. Demand is down - that's what you do when demand is down. Those 19 dollar fares just aren't doing it for WN now, are they? Especially when pilot and mx costs are creeping up [img src='http://www.usaviation.com/idealbb/images/smilies/9.gif']
 

KCFlyer

Veteran
Aug 20, 2002
10,697
1,324
www.usaviation.com
BZ - there's two ways to approach a reduction in demand...reduce supply, or try to take steps to increase demand. I find it kind of interesting that all of the airlines who took the reduce supply route are showing losses, while the airlines (LUV is not alone here) who took steps to increase demand are showing profits.
 

ChairPrefRes

Member
Aug 19, 2002
89
0
[blockquote]
----------------
On 11/7/2002 11:07:29 AM longonsofty wrote:

ChairPrefRes

check your pm's.
----------------
[/blockquote]
Amazing Got the magic call!!! That was fast and I look forward to the process!!! Thanks LUV see yah USAir (I hope)
 
OP
WNjetdoc

WNjetdoc

Veteran
Aug 20, 2002
532
0
www.usaviation.com
[blockquote]
----------------
On 11/8/2002 10:38:33 AM ChairPrefRes wrote:

[blockquote]
----------------
On 11/7/2002 11:07:29 AM longonsofty wrote:

ChairPrefRes

check your pm's.
----------------
[/blockquote]
Amazing Got the magic call!!! That was fast and I look forward to the process!!! Thanks LUV see yah USAir (I hope)
----------------
[/blockquote]
You won't regret it and its the best move you've ever made. I only wish I had made the move about 15 years ago.
 

Latest posts