Southwest business model

[KCFlyer]

The problem the legacy carriers have is that we are full service carriers that offer flights and connections to all corners of the world. SWA is a little airline that serves few markets and does not touch all cities with any type of codeshare. The cost of being a full service airline will always be higher, even if we only flew the same equipment type, the beast is different in cost and structure. For SWA it has been the fuel that has made you guys money. With the new routes losing money and the hedges expiring you will now be graded differently.

Odd....it's just the fuel...not the fact that they didn't have to be in Canada, Mexico, Paris, and Tokyo with first class ameniteis at coach (or less) prices (gottal love those FF upgrades)??

The problem the public has is they want to fly for the mythical $49 fare that does not exist. SWA is often the highest fare in some markets, that is why they are afraid to sell their seats on expedia, travelocity or any of the other sites. For someone to see on the grid that SWA is that much more for that much less would be unTexas like.

But profitable. Keep posting those loss leader fares on Expedia to put butts in seats. That's funny mags...Southwest won't put there fares on Expedia, so nobody knows that UAL is undercutting their fares for absolutely no other reason than to lose money. Brilliant management you've got there.

 

[tulswa]

So when I fly a 14 hour nonstop flight am I not more productive than you?

I have no doubt that you guys don't have the ability to negotiate any type of industry leading pact that would raise all boats.

SWA in no way competes with any airline flying 14 hour non-stops. Can you name one year in the last 20 that UALs domestic operations made a profit, or broke even?

I assume (because I hear it all of the time from pilots at other carriers) that most domestic airlines would trade their present contract for what we have now. I will never understand why some of you guys/girls (including many at SWA) can't sleep at night knowng that someone makes a bit more than you. I will trade job security for "king of the hill" rights any day.

 

[does this plane go to paris]

So when I fly a 14 hour nonstop flight am I not more productive than you?

On a 14 hour flt, you have how many different pilot crew's are onboard the aircraft. being from such a rinky dinky outfit, not sure how many your union demands to be on board.

Back a few years ago, I belive that it was pre 9/11 and AA had stepped their DFW/HNL flt from a DC-10 over to either a 767 or 777. The flt times were changed and it showed that the actually computer flying time was 8 hours and 1 minute. AA management tried scheduling 1 pilot and 1 co-pilot and the union say no, no, no. Since the flt was over 8 hours, you needed two crews. That obviously brought down the productivity and raised costs.

Mags, it well know that you detest WN and spend a lot of time here bashing it. I've read some of your posts that protray you as someone who is looking way D
O
W
N on WN for having the audacity of having a working business model that has become quite successfull. Bash away, it's your right as citizen of this board. But to your question, how productive are you on a 14 hour flt. Because your only being productive for 8, right?

 

[ClueByFour]

Also, SWAPA pilots are known in the industry as having the largest ego's of any group.

No. That would be a tie between you and your co-workers and AA. Then US/DL, then CO. Then maybe, (maybe) LUV.

The problem the public has is they want to fly for the mythical $49 fare that does not exist. SWA is often the highest fare in some markets, that is why they are afraid to sell their seats on expedia, travelocity or any of the other sites. For someone to see on the grid that SWA is that much more for that much less would be unTexas like.

Perhaps, once you understand how the incredible difference in distribution costs between your airline and Southwest impacts, say, the drastic difference in pilot pay and company earning differences between you and Southwest, you could make that statement and have it be accurate.

As it is, it's not. People shop around. In fact, one could argue that not being in Orbitz and the like puts southwest at a huge disadvantage, since not everyone looks at Southwest.com when they go to buy a ticket.

With all that said, even if we accept your incorrect premise, it follows that Southwest is smarter than everyone else if they can indeed get people to only look at their website and ignore the cheaper fares available elsewhere.

Again--does it really bother you that they guy doing OAK-LAX turns in a guppy is earning more by September than you will all year?

 

[wnbubbleboy]

WASHINGTON (Dow Jones) -- When you're leading a record-setting mutual fund, sometimes the best offense is a good defense.

David Giroux, manager of T. Rowe Price Capital Appreciation Fund (PRWCX) , looks for stocks with solid financials and strong growth opportunities. Given that the portfolio hasn't lost money in any calendar year since 1990, there's both considerable momentum and challenges for Giroux, who started on the fund about a year ago, to keep up the good work.

"It's a unique product for clients...it's very important for the firm," Giroux said. "The most important part is capital preservation."

The no-load fund, which has about $11 billion under management, is a hybrid that invests in stocks, bonds and convertible securities. The stock portion focuses on large-cap picks, with top holdings such as Microsoft Corp. (MSFT) and Pfizer Inc. (PFE) .

The fund's 21.2% advance in the 12 months through June 15 tops its balanced category's 18.7% average rise, according to fund tracer Lipper Inc. Over three years, the fund's annualized 14.1% return also beats its peers' 10.9% average gain.

Giroux sees potential in Southwest Airlines Co. The Dallas-based airline (LUV) appeals to Giroux as a way to capture growth at an inexpensive price.

Southwest shares finished Friday's session at $14.54, down 11 cents and below Giroux's estimate of company's liquidation, or buyout, value that he pegs at $17 to $19 a share.

"They actually own their own planes. Our downside is limited because the stock is below liquidation value," the manager said.

Southwest could increase its load factor -- the portion of a plane filled with passengers -- and launch ancillary services, such as charging for Internet service, Giroux says, developments that could give the company another $1.50 per share of earnings power.

"The big point is that this company is dramatically under-earning its business model," he said. "There are a lot of levers they can pull. We don't think there's a lot of downside."





http://money.cnn.com/news/newsfeeds/articl...16_FORTUNE5.htm