Southwest business model

[wnbubbleboy]

You have chosen to ignore all posts from: magsau.

 

[ramper_in_las]

Tempe-based US Airways is at the bottom of a relatively unfriendly pile of airlines, as far as consumers are concerned.

All you US employees waiting for WN's demise. Why don't you start worrying about yourself and get your customer service issues taken care of before casting you judgment on WN. After we must be doing something right, we are in the top ten for customer service.

Source:
http://www.eastvalleytribune.com/story/90997

 

[wnbubbleboy]

All you US employees waiting for WN's demise. Why don't you start worrying about yourself and get your customer service issues taken care of before casting you judgment on WN. After we must be doing something right, we are in the top ten for customer service.

Source:
http://www.eastvalleytribune.com/story/90997

Flying cheaper

• Consumer Reports Tips for a pleasant flight at a good price:

• If JetBlue, Midwest, Southwest, Frontier or Hawaiian flies your route, look no further.

 

[magsau]

Flying cheaper

• Consumer Reports Tips for a pleasant flight at a good price:

• If JetBlue, Midwest, Southwest, Frontier or Hawaiian flies your route, look no further.

The short bus airlines. All of those carriers face extinction under current conditions and SWA is now in the pool. You don't have to believe me. Just read the downgrades by the finance houses. SWA is about to implode. Could not happen to a nicer group of people.

 

[KCFlyer]

The short bus airlines. All of those carriers face extinction under current conditions and SWA is now in the pool. You don't have to believe me. Just read the downgrades by the finance houses. SWA is about to implode. Could not happen to a nicer group of people.

I don't know if you've ever noticed this, but those Wall Street pros are far more reactionary than visionary. Just take a look back at the upgrades, followed by a downgrade days later, followed by an upgrade by a different finance house the same day as the downgrade. If one followed the ratings of the finance houses, most folks would be in a "buy high, sell low" situation. But the finance guys still get their commissions.

 

[magsau]

I don't know if you've ever noticed this, but those Wall Street pros are far more reactionary than visionary.

If they are reactionary then what are they reacting to? So you agree there are issues facing SWA and that the houses are "reacting" to this?

I would tend to agree that finance houses often run the shows for profits. However, there are key issues surrounding SWA and its financial future. Too many airplanes, too few pax, hedges expiring, labor cost out of proportion to industry etc. If the upgrades and downgrades were baseless I would absolutely agree but SWA is entering the crunch. Much will depend on how the company steers itself in the near future.

 

[KCFlyer]

If they are reactionary then what are they reacting to?

Last weeks news. They certainly aren't reacting to a long term view of the future. That is why they are "reactionary".

 

[boeingdriver213]

Every airline takes their turn at hard times. That's a fact. However, if hard times do come soon at Southwest, I have a whole lot more confidence in the management and the employees of Southwest than I do of any other airline to get us through it....

 

[magsau]

Every airline takes their turn at hard times. That's a fact. However, if hard times do come soon at Southwest, I have a whole lot more confidence in the management and the employees of Southwest than I do of any other airline to get us through it....

Well, good for you.

 

[Busdrvr]

Every airline takes their turn at hard times. That's a fact. However, if hard times do come soon at Southwest, I have a whole lot more confidence in the management and the employees of Southwest than I do of any other airline to get us through it....

Quite honestly, todays management team isn't what saves SWA. What saves SWA is the conservative financial practices of the past. Instead of leasing jets or taking debt to finance purchased ones while buying back the stock, they paid cash for equipment. Truth is that even if the bottom dropped out and SWA started losing money big time, BK would serve no purpose whatsoever. The benefit of BK is in stiffing the creditors (cleaning up the debt). If you have no debt, what's the use?

Do I think SWA faces tough finacial conditions ahead. Yes. Am I buying the stock? Heck no. Is SWA in any danger of BK in the next 10 years? I can't imagine the situation where they would be.

 

[ramper_in_las]

Quite honestly, todays management team isn't what saves SWA. What saves SWA is the conservative financial practices of the past. Instead of leasing jets or taking debt to finance purchased ones while buying back the stock, they paid cash for equipment. Truth is that even if the bottom dropped out and SWA started losing money big time, BK would serve no purpose whatsoever. The benefit of BK is in stiffing the creditors (cleaning up the debt). If you have no debt, what's the use?

Do I think SWA faces tough finacial conditions ahead. Yes. Am I buying the stock? Heck no. Is SWA in any danger of BK in the next 10 years? I can't imagine the situation where they would be.

though I don't fully agree with you. I have to compliment how intelligently you made your point without throwing flame bait, unlike your united counterpart. The only thing I have to add is yes SWA faces a tough financial road ahead. It seems to be the norm for the entire industry not just WN.

 

[Busdrvr]

The only thing I have to add is yes SWA faces a tough financial road ahead. It seems to be the norm for the entire industry not just WN.

I calls em like I sees em...

Make no mistake, I hope SWA continues to be profitable. How else can we argue for "SWA +1%"

 

[jimntx]

I love it when prognosticators from failing airlines insist that SWA is on the ropes. They work for airlines that have a CASM of $0.12, sell that seat mile for $0.20, and still manage to lose money. Yet they have the expertise to predict that SWA is not long for this world.

As Mark Twain said, "The reports of my death are greatly exaggerated."

 

[The Goose]

I love it when prognosticators from failing airlines insist that SWA is on the ropes. They work for airlines that have a CASM of $0.12, sell that seat mile for $0.20, and still manage to lose money. Yet they have the expertise to predict that SWA is not long for this world.

As Mark Twain said, "The reports of my death are greatly exaggerated."

After AMR (AA) sold SWA their fuel hedges in 2003, Southwest had no reason to change their tune - after all, things were still good, right? Fly like hell on $35 oil contracts.

Now things are a tad different. Southwest must now go through the same "save money" crap the others have, only later in the game.

Even though they've never been paid as much as the majors, SWA execs will see to it they lose nothing, as all good executives do. Can anyone guess where the "savings" will come from?

DUH!

 

[1 VF-1 2NV]

AA sold WN their fuel hedges? Really, I didn't know that. Or is just hearsay?