Southwest's Crusher

[WNjetdoc]

ALL (good) things come to an end. Maybe their true competition is not even in business/created yet. Any serious threat seems to be many years away.

[post="240764"][/post]​

BO, are you saying, ALL good things come to an end? I hope not because that doesn't speak well for our country.....heck, that means the Marine Corps is coming to an end, the Steelers win streak, the sun will stop burning....where do I end it?

However, BO you're correct, eventually everything, good OR bad will come to an end. It could take 3 minutes or 50,000 years, but everything will come to an end...good point sir. B)

 

[wnbubbleboy]

BO, are you saying, ALL good things come to an end? I hope not because that doesn't speak well for our country.....heck, that means the Marine Corps is coming to an end, the Steelers win streak, the sun will stop burning....where do I end it?

However, BO you're correct, eventually everything, good OR bad will come to an end. It could take 3 minutes or 50,000 years, but everything will come to an end...good point sir. B)

[post="240894"][/post]​

Well, let's not get crazy now.

 

[luv2fly]

Then there's the multiple fleet types.  I still think this is a big mistake on JetBlue's part.    As their aircraft age, there will be an increase in maintenance costs.  As their workforce becomes more "senior", labor costs will rise - with or without a union.  And starting up a slew of new cities to be served by the Embraers won't exactly be free. 

So....I don't think that JetBlue will be the threat to Southwest.

[post="197052"][/post]​

Exactly right KC. Fleet divesification is something JB should have stayed away from. An aging fleet and employee group will only increase costs with time. If JB elects not to renew too many of those 5 year contracts, look out for the unions. JB has not been around long enough to be able to make such bold threats to WN. They are a Wall Street darling right now, and that too will most likely change with time. No amount of blue coolaid will save an airline from simple economics.

 

[Dizel8]

" An aging fleet and employee group will only increase costs with time".
How is that different from what is going on at luv? If anything, at present, both the employees and the fleet is much younger than it is at SWA.

"If JB elects not to renew too many of those 5 year contracts, look out for the unions."

As for now that is a non issue, all the contracts have been renewed.

I personally think, that the only people who wish LUV and JBU go head to head works for neither, but I am sure there are a few legacy execs who would love to see it happen. It would be an ugly fight, with JBU surely the ultimate loser, all one has to do is look at cash at hand as well as cost of fuel. LUV could be flying for free and still end up the winner, something I am sure is well understood by those who plan. At present, no airline could withstand a frontal assault from LUV and win.

As for the EMB-190, it may well give JBU an opportunity to grow in markets that are to small for both the A-320 and LUV. It certainly offers not only better comfort than RJ's, but also a lowered cost. Much like no one believed LUV could ever make it, I think it is a bit too early to call the -190 a mistake.

 

[Whadayano]

The E-190 is aimed at picking off regionals. Most of Delta's loss was their write-down of the value of ASA and Comair (we paid too much, in other words). Once the e-190 hits, they may have to take another one.

 

[KCFlyer]

As for the EMB-190, it may well give JBU an opportunity to grow in markets that are to small for both the A-320 and LUV. It certainly offers not only better comfort than RJ's, but also a lowered cost. Much like no one believed LUV could ever make it, I think it is a bit too early to call the -190 a mistake.

[post="241830"][/post]​

The company has already said that the E-190's will increase costs nearly 15%. It might let them get into markets not capable of handling a 320 or 737, but at what price to the consumer? Or to the airline?

 

[Dizel8]

"but at what price to the consumer?"

Well, since it offers the airline lower cost per seat than an RJ, along with greater comfort, it may indeed be great for the consumer. However, as we both know, the current fare levels are not sustainable, however, having said that, I doubt you will ever see jetblue charge $500 for an hours flight.

"Or to the airline?"

Managment at jetblue are truly psyched about the 190. They think it is a great airplane and that it will further strengthen jetblue, by allowing them to open more markets. While time will show, they are smarter than me.