Dont call me Shirley
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http://www.nytimes.com/2010/11/21/business/21south.html?hp
A good read...
A good read...
NYT on SWA
- Thread starter Dont call me Shirley
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WorldTraveler
Corn Field
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It is a good read but it also shows that the entire US airline industry is maturing and WN has to mature with it or get left behind. The reality is that WN must be a nationwide carrier and that involves congested, delay prone NE airports. It means that WN must join B6 and FL in developing the Caribbean where LFCs have been quite successful in expanding. It means that the WN has to spend significantly to diversify its business model - and diversity can be costly.
WN will do fine in part because it becomes the first truly nationwide LFC w/ major operations in every corner of the country.
But WN won't be the novelty it once was - but doesn't really need to be as long as it can continue to deliver superior financial results which is what WN has done for decades. What is different this time is that there are other carriers who compete with WN who are capable of competing effectively against WN and making money as well.... and so part of what has made WN unique is lost as other carriers are able to be similarly succesful on a long-term basis.
WN will do fine in part because it becomes the first truly nationwide LFC w/ major operations in every corner of the country.
But WN won't be the novelty it once was - but doesn't really need to be as long as it can continue to deliver superior financial results which is what WN has done for decades. What is different this time is that there are other carriers who compete with WN who are capable of competing effectively against WN and making money as well.... and so part of what has made WN unique is lost as other carriers are able to be similarly succesful on a long-term basis.
SharoninSAT
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does this plane go to paris
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I thought there was some good inormation, some thoughts to ponder and some fluff.
Some of the comments that Southwest is stagnet is in my mind grossly unfair. The majority of businesses, both large and big have cut back inventory and are sitting on piles of cash. Southwest has opened new cities, realigned frequencies etc AND is in the middle of purchasing a competitor during a recession.
Southwest has reputation for reliability, low fares and Friendly Customer Service. The Today show had Consumer Reports on for a segment on Christmas Holiday Return policies and Southwest was listed as #3. Forbes has listed Southwest as the 2nd most recoginzed name. If they ever lose sight of the Customer and that value, then I would lump them with others. Until then, I believe the strong leadership and tweaky of the model is a good thing.
Some of the comments that Southwest is stagnet is in my mind grossly unfair. The majority of businesses, both large and big have cut back inventory and are sitting on piles of cash. Southwest has opened new cities, realigned frequencies etc AND is in the middle of purchasing a competitor during a recession.
Southwest has reputation for reliability, low fares and Friendly Customer Service. The Today show had Consumer Reports on for a segment on Christmas Holiday Return policies and Southwest was listed as #3. Forbes has listed Southwest as the 2nd most recoginzed name. If they ever lose sight of the Customer and that value, then I would lump them with others. Until then, I believe the strong leadership and tweaky of the model is a good thing.
WorldTraveler
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Paris,
Your points are very valid but WN mgmt knows they cannot grow the company solely on the reputation they have built- and it is a valuable reputation.
The reason why WN is moving forward w/ the FL acquisition is solely because they must obtain access to all of the top markets in the US, and FL will deliver the rest of the US as well as a platform for int'l growth in fairly short order. Combining WN's new access to EWR w/ the slots FL holds at DCA and LGA as well as FL's presence in ATL and up and down the east coast is exactly what WN needed in order to become the first truly coast to coast low fare carrier in the US that serves all of the major markets.
But it is not lost on anyone that WN does not typically acquire other airlines because it doesn't always go well and WN has its own history of less than ideal acquisitions. WN's plate will be full for the next several years digesting FL and obtaining maximum benefit from it.
When you consider that the network carrier segment of the industry is consolidating and they have networks and alliances with fully nationwide coverage, WN had no choice but to move.
Further, other airlines are delivering financial results on par w/ what WN has reported recently. They have a long ways to go before matching WN's track record but there is no doubt that some stability is finally coming to the US airline industry which makes WN less of a standout as other airlines do what WN has done.
Your points are very valid but WN mgmt knows they cannot grow the company solely on the reputation they have built- and it is a valuable reputation.
The reason why WN is moving forward w/ the FL acquisition is solely because they must obtain access to all of the top markets in the US, and FL will deliver the rest of the US as well as a platform for int'l growth in fairly short order. Combining WN's new access to EWR w/ the slots FL holds at DCA and LGA as well as FL's presence in ATL and up and down the east coast is exactly what WN needed in order to become the first truly coast to coast low fare carrier in the US that serves all of the major markets.
But it is not lost on anyone that WN does not typically acquire other airlines because it doesn't always go well and WN has its own history of less than ideal acquisitions. WN's plate will be full for the next several years digesting FL and obtaining maximum benefit from it.
When you consider that the network carrier segment of the industry is consolidating and they have networks and alliances with fully nationwide coverage, WN had no choice but to move.
Further, other airlines are delivering financial results on par w/ what WN has reported recently. They have a long ways to go before matching WN's track record but there is no doubt that some stability is finally coming to the US airline industry which makes WN less of a standout as other airlines do what WN has done.
