AJC on Southwest / Airtran merger

[WorldTraveler]

He did not say that he hadn't thought about IT systems. He said he didn't know the answer to the question asked. There is a distinct and telling difference between the two. Most airline CEOs would have bluffed through with "I'll have someone from my IT staff call you about the details" and so on and so forth. I love that he said, "I don't know." No CEO of any company knows the answer to everything. That is not what he/she is paid to do.

I agree... but months after the merger was consummated it is expected that the CEO does know key issues facing the company.
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He didn't say "I'll have someone call you" because he acknowledged they don't have the answer.
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As I have said many times, WN is a well run company and they have enough reserves to be able to withstand a bump or two - and in the scope of things that is all this is.
But it does say that they are 2 steps behind when it comes to achieving the benefits they laid out when the merger was announced.
They'll catch up - but in the highly competitive airline industry, they have given the competition even more time to prepare and perhaps have permanently lost an opportunity to grow ATL since it is highly certain that WN's attention will shift to DAL, the airport, and the growth that awaits them there as soon as the Wright Amendment falls. Add in the int'l growth - which will largely be from other WN gateways and the value WN obtains from the merger might be significantly different than what they laid out when the merger was announced.

 

[WorldTraveler]

He did not say that he hadn't thought about IT systems. He said he didn't know the answer to the question asked. There is a distinct and telling difference between the two. Most airline CEOs would have bluffed through with "I'll have someone from my IT staff call you about the details" and so on and so forth. I love that he said, "I don't know." No CEO of any company knows the answer to everything. That is not what he/she is paid to do.

I agree... but months after the merger was consummated it is expected that the CEO does know key issues facing the company.
.
He didn't say "I'll have someone call you" because he acknowledged they don't have the answer.
.
As I have said many times, WN is a well run company and they have enough reserves to be able to withstand a bump or two - and in the scope of things that is all this is.
But it does say that they are 2 steps behind when it comes to achieving the benefits they laid out when the merger was announced.
They'll catch up - but in the highly competitive airline industry, they have given the competition even more time to prepare and perhaps have permanently lost an opportunity to grow ATL since it is highly certain that WN's attention will shift to DAL, the airport, and the growth that awaits them there as soon as the Wright Amendment falls. Add in the int'l growth - which will largely be from other WN gateways and the value WN obtains from the merger might be significantly different than what they laid out when the merger was announced.

 

[swamt]

I agree... but months after the merger was consummated it is expected that the CEO does know key issues facing the company.
.
He didn't say "I'll have someone call you" because he acknowledged they don't have the answer.
.
As I have said many times, WN is a well run company and they have enough reserves to be able to withstand a bump or two - and in the scope of things that is all this is.
But it does say that they are 2 steps behind when it comes to achieving the benefits they laid out when the merger was announced.
They'll catch up - but in the highly competitive airline industry, they have given the competition even more time to prepare and perhaps have permanently lost an opportunity to grow ATL since it is highly certain that WN's attention will shift to DAL, the airport, and the growth that awaits them there as soon as the Wright Amendment falls. Add in the int'l growth - which will largely be from other WN gateways and the value WN obtains from the merger might be significantly different than what they laid out when the merger was announced.

WT, I must say that I agree with your entire post. And yes, once the W/A does indeed go away SWA will be focussing on DAL as well as ATL and DEN. I have a question. Do you think that SWA is going after the approval to fly Int out of Houston at current airport to get a feather in thier cap witin the same state to try and later go after approval to do the very same thing up here at Dallas Love Field? I kind of see this as a move to get an easier approval up here as well. What do you think? Once again just a thought...

 

[BoeingBoy]

I agree... but months after the merger was consummated it is expected that the CEO does know key issues facing the company.
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He didn't say "I'll have someone call you" because he acknowledged they don't have the answer.

Did you read the same interview everyone else did?

He recognized that the res system limitations were one of several key issues that WN has prioritized. You may disagree with the priority given it, but you can't say that he isn't aware of the problem. The only thing that he didn't have a specific answer for was a date the res system modifications would be complete. But he gave an answer - even if it's not as specific as you'd like.

Jim

 

[WorldTraveler]

swamt,
thank you for your comments... alot of people at FL and WN both have to question what is being done when promises about what the merger was supposed to do are not being met and WN clearly didn't have the answers in hand... perhaps WN mgmt is attempting to downplay that they weren't prepared and didn't think this all through but no one can honestly harmonize their statements about wanting to be int'l and be able to codeshare during the transition with the fact that they can't do it.
Given that they added alot of WN flights while pulling FL flights and now are going back to FL flights again says they really didn't realize what they were up against.
This is a rare but very notable lapse on WN mgmt's part - and it is bound to have an effect on the bottom line.... you can't have FL operating int'l flights out of WN strength cities and do it anywhere near as well as it could have been done if it was fully coordinated. You can't pull FL flights out of its own hub and replace them w/ WN flights that can't be codeshared w/o weakening the FL hub.
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I am not sure WN will win the battle to try to become an int'l airline from DAL.. but they have overcome a lot of obstacles in the past. Honestly, I'm not sure it is really worth their while to push being int'l at both HOU and DAL... it would seem to make more sense to add other gateways in the southwest- PHX and LAS, maybe LAX.. and then more in Florida....
What is clear is that WN has enormous potential to grow south of the border and they should take every opportunity they can get and run w/ them..... but it all requires having a res system capable of handling it all.
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I do think Texas will be a big part of WN's int'l growth and it will further break down the difference between WN and other network carriers in the process. Add in Florida, PHX, and potentially LAX and the south of the border airline game will be dramatically changed.
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Add in the growth at DAL as a result of the Wright Amendment from airports where WN already has a loyal following and I think you will see WN's absorb all of the available planes they can get their hands on, esp. if they accelerate retirement/sale of the 717s.
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WN has historically done a very good job of adapting to changing environments... they will do it again and will be far stronger as a result of the soul-searching and the head-scratching they are having to do now.

 

[WNMECH]

International flights are prohibited from Love Field per the new agreement that removes the Wright Amendment.

It is article 1. Paragraph 2. of the agreement.

 

[swamt]

International flights are prohibited from Love Field per the new agreement that removes the Wright Amendment.

It is article 1. Paragraph 2. of the agreement.

We all know that. But it does not stop SWA from trying once again, to get another chunck of the W/A restrictions whittled down. If you look back (yes I know you know this) SWA has always slowly whittled away at the W/A. State by state, until finally the big move we have coming in 2014. I think we have too few of gates and if SWA puts the money into Hou for customs and all, they prob won't, but I could see them pushing for it later down the road say 10 yrs from now.

 

[Dont call me Shirley]

The Morris Air/Southwest merger was before the days of the internet and this forum, but I seem to remember hearing that Southwest said afterward they would never merge again voluntarily.


On the IT issues, I would think it a safe bet that they will not go with QIK/SHARES!


Yeah, UAL went with SHARES, but have a different GUI overlay. And do AFAIK let user choose between native SHARES and the gooey overlay.

 

[SharoninSAT]

.
Amadeus Reservations system to support Southwest Airlines international service...

Southwest and Amadeus IT Group have entered into a joint contract for Amadeus’ Altéa reservations solution that would support our international service. Now that the contract is finalized, we will work closely to implement Amadeus’ technology that will allow us to operate international flights in 2014.

AirTran currently serves international destinations. As the AirTran international flights transition to Southwest, Amadeus will support Southwest’s international flying.

While the Amadeus IT Group agreement focuses on the international element of our reservation system, the contract also provides the option for Southwest to convert our domestic business to Amadeus in the future.

“We could not be more impressed with the experience and knowledge Amadeus IT Group brings to the table,” said Gary. “They are a premier technology provider, and we are confident in their ability to meet and exceed our needs as we prepare for the exciting opportunity to extend the Southwest brand into the international marketplace.”

Southwest Airlines and Amadeus

 

[tech2101]

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Amadeus Reservations system to support Southwest Airlines international service...


Southwest Airlines and Amadeus

Thank you for the link Sharon.

 

[does this plane go to paris]

The Morris Air/Southwest merger was before the days of the internet and this forum, but I seem to remember hearing that Southwest said afterward they would never merge again voluntarily.



At the height of his success and as other car makers were emerging and taking market share from Henry Ford, a reporter told him that people wanted other options than the Model T and in black. Henry Ford replied that they, the buyer, could have any color they wanted, as long as it was black.

The point is that Ford adapted has has endured. I was employed at WN before, during and after Morris Air, I do not recall them saying that they would never merge voluntarily, but I could be wrong. What I recall from that experience was that WN soon adapted Morris's Ticketless system and that was the real prize they were after. Morris was in '93 and the Southwest Homepage came along in '97? and was soon the second biggest internet revenue source. I don't think that "never" is in the vocabulary unless it absolutely anti-Customer Service.