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Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: enilria
Posted 2013-04-21 12:18:08 and read 11189 times.

The prior CTO for WN didn't last long. The person came from outside the airline business if memory serves. Wasn't it Pepsi or something?

So, you know what this person's resume is all about? Making NK's RES system able to be able to sell their myriad fees. In the airline IT world that is a considerable accomplishment. In fact, the reason NK is doing so well is that the legacy carriers are unable to match NK's carry on fee.

So, why would WN want somebody with this resume/skillset? They clearly plan to add a lot of fees going forward and it's been reported that WN's existing IT setup precludes compulsory bag fees.

http://finance.yahoo.com/news/southw...es-chief-technology-154300388.html

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: azjubilee
Posted 2013-04-21 12:27:58 and read 11157 times.

OR... they just want someone who is good at what they do. Airlines poach talent from each other all the time. I think assuming that a myriad of fees is front and center for Southwest is a bit of a stretch.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: bobloblaw
Posted 2013-04-21 13:12:28 and read 10939 times.

Quoting enilria (Thread starter):

Youre great and a huge asset to A.net, but you have a tendency to over read every story. WN can no way begin charging for bags, at least not the first. If they do, WN will join Coke and Bags Fly Free will be like New Coke. WN already charges for excess bags and weight.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: mcdu
Posted 2013-04-21 13:13:46 and read 10928 times.

Quoting azjubilee (Reply 1):

OR... they just want someone who is good at what they do. Airlines poach talent from each other all the time. I think assuming that a myriad of fees is front and center for Southwest is a bit of a stretch.


Fees are coming to WN. GK has admitted as much. Too much revenue left on the table. Also WN stopped the ludicrous bag fee commercials to try make people forget. Hopefully the humble pie to be served at WN will go down smoothly.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: awacsooner
Posted 2013-04-21 13:33:13 and read 10823 times.

Quoting enilria (Thread starter):

So, why would WN want somebody with this resume/skillset? They clearly plan to add a lot of fees going forward and it's been reported that WN's existing IT setup precludes compulsory bag fees.

You are totally grasping at straws here. Please tell me this isn't an attempt to slam WN.

Quoting enilria (Thread starter):
In fact, the reason NK is doing so well is that the legacy carriers are unable to match NK's carry on fee.

Because the rest of the legacies aren't stupid enough to go there. Charging for carry-ons has got to be the most asinine fee the airlines have come up with yet...and I have nothing but ill-feelings towards them.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: usflyguy
Posted 2013-04-21 13:43:56 and read 10762 times.

Quoting enilria (Thread starter):
The prior CTO for WN didn't last long. The person came from outside the airline business if memory serves. Wasn't it Pepsi or something?

You're thinking of Randy Sloan and he is VP and Chief Information Officer and is still at WN.

http://www.swamedia.com/channels/Our_Leaders/pages/bios

Quoting enilria (Thread starter):
it's been reported that WN's existing IT setup precludes compulsory bag fees

Besides you saying so, where has that been reported. The system in place can charge for a first and second bag just as it does for bags 3-10, overweight bags, oversized bags, cargo, pets, unacommpanied minors, early-bird, business select, last-minute boarding position upgrades, etc.

In your terms it was also "reported" that a codeshare between WN and FL would never come to fruition.

Quoting mcdu (Reply 3):
Also WN stopped the ludicrous bag fee commercials to try make people forget. Hopefully the humble pie to be served at WN will go down smoothly.

Wrong. Bags fly free is still a big part of the advertising campaign and it is still plastered all over the website, online ads, airport signage, on the side of some aircraft, and on every press release that goes out.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: bobloblaw
Posted 2013-04-21 14:25:41 and read 10581 times.

Quoting mcdu (Reply 3):
Also WN stopped the ludicrous bag fee commercials to try make people forget.

Theyre not going to forget. "Bags Fly Free" is too successful a campaign.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: aztrainer
Posted 2013-04-21 14:35:41 and read 10526 times.

Quoting mcdu (Reply 3):
Fees are coming to WN. GK has admitted as much. Too much revenue left on the table. Also WN stopped the ludicrous bag fee commercials to try make people forget. Hopefully the humble pie to be served at WN will go down smoothly.

Well if that is the case then they should also take the slogan "Bags fly free here" off the side of their planes.

WN has added fees for Early Bird boarding, Business Class First seating and some other, but bags will continue to fly free for some time. Maybe they see this individual as a good asset and they can use his skills better than the previous person. As was stated, if the previous person was from outside they may not know the idiosyncrasy of the business.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: commavia
Posted 2013-04-21 14:39:48 and read 10502 times.

Quoting bobloblaw (Reply 2):
WN can no way begin charging for bags

Sure they can. Many - myself included - expect they will at some point have to one way or another.

As Southwest's business model continues to evolve, and their costs continue to rise from where they used to be, Southwest is going to have to find some way to raise more revenue. Southwest is a price-setter in many of the markets they serve, so they can continue to manage revenue that way - by steadily raising fares and turning away the most price-sensitive customers. But at some point, I still contend they will simply run out of justifications to shareholders as to why they are leaving potentially hundreds of millions in revenue on the table.

I get the longstanding WN argument that WN would lose revenue from customer book-away, and that, on the flip side, they today enjoy market share benefit from customers booking with them for the free bags, but I just do not buy it, and I still think at some point shareholders will stop buying it, too. I, personally, see little evidence to suggest that WN derives any meaningful share shift advantage due to free checked bags among any but the most price-sensitive travelers, many of whom WN is likely going to have a harder and harder time serving in coming years, anyway. And as for the alleged share loss if WN were to start charging for bags, it does beg the question: where will people go? Just about every one of WN's large competitors now charge some form of checked bag fee.

Again - I just do not see how WN is going to be able to continue justifying the no fee stance forever.

Quoting mcdu (Reply 3):
Too much revenue left on the table.

  

Quoting awacsooner (Reply 4):
Charging for carry-ons has got to be the most asinine fee the airlines have come up with yet

... so asinine that WN's major competitors are collectively making literally hundreds of millions if not billions per year from them.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: RWA380
Posted 2013-04-21 15:22:29 and read 10324 times.

Quoting mcdu (Reply 3):
Also WN stopped the ludicrous bag fee commercials to try make people forget. Hopefully the humble pie to be served at WN will go down smoothly.

Not going to happen. Any person I know who is not a A.net geek, knows 1 thing about flying it's that WN offers free bags.

Quoting awacsooner (Reply 4):
You are totally grasping at straws here. Please tell me this isn't an attempt to slam WN.

Giving the respect of doubt here, I think he was just thinking out loud, which is a big part of what happens here.

Quoting commavia (Reply 8):
As Southwest's business model continues to evolve

From a passenger perspective, evolution is not taking away a service or feature that benefits the passenger. WN has made the connection between themselves and "free bags" they are going to feel some backlash if they ever change that.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: awacsooner
Posted 2013-04-21 15:37:18 and read 10260 times.

Quoting commavia (Reply 8):

... so asinine that WN's major competitors are collectively making literally hundreds of millions if not billions per year from them.

Re-read my comment...

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: commavia
Posted 2013-04-21 15:39:32 and read 10255 times.

Quoting RWA380 (Reply 9):
From a passenger perspective, evolution is not taking away a service or feature that benefits the passenger.

The money has to come from somewhere. WN's costs have been steadily rising for the last decade, and they have to find a way to pay for it. Again - they can raise fares only to a point. At some point, I expect that WN's shareholders are going to ask how much money WN is leaving on the table without a checked bag fee.

Quoting RWA380 (Reply 9):
WN has made the connection between themselves and "free bags" they are going to feel some backlash if they ever change that.

Thus why some suggested WN would have been wise several years ago not to box themselves into quite such a PR corner.

Quoting awacsooner (Reply 10):
Re-read my comment...

My apologies.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: BD338
Posted 2013-04-21 15:39:36 and read 10255 times.

What has the hiring of an IT guy got to do with baggage fees? I'm going out on a limb here and thinking that maybe they just hired the best person for the job, i doubt he will ever have any say whatsoever on introducing any fees, at the most he'll be tasked with getting the systems updated. I'm thinking they found someone with airline industry experience to help them with the Amadeus roll out...or just they needed a new CIO.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: 737tdi
Posted 2013-04-21 15:47:00 and read 10211 times.

Quoting commavia (Reply 8):
... so asinine that WN's major competitors are collectively making literally hundreds of millions if not billions per year from them.

So why are they still losing money?? Or going bankrupt or worse, out of business??

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: JBAirwaysFan
Posted 2013-04-21 15:48:49 and read 10200 times.

I can see WN adding a fee for a second bag, but not the first. I'm thinking JetBlue and Southwest will be the only carriers to keep a first checked bag free for the time being. However all airlines, except Southwest charge for a second bag. I can see them matching that one. It's all about maximizing revenue, and if airlines can make money on charging to check bag number 2 then they will. Southwest's cost structure is not as low as it used to be, and I can see this happening.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: commavia
Posted 2013-04-21 15:59:12 and read 10151 times.

Quoting 737tdi (Reply 13):
So why are they still losing money?? Or going bankrupt or worse, out of business??

Look again - they aren't.

In fact, WN's margin performance in recent quarters actually hasn't been particularly amazing compared with some competitors with checked bag fees. Thus why I think eventually shareholders are going to be more loudly asking to see the numbers WN continues to use to justify relatively fewer fees than competitors.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: wwtraveler99
Posted 2013-04-21 16:05:20 and read 10115 times.

I am not sure why everyone is so worked up about bags fees. If you feel you need to pay more to fly buy a full-fare Y ticket. Everyone will be happy.

As far as the revenue side WN is expected to bring in 17.86 Billion in revenue. Thats an increase of 4.5%. Profits are expected to be $713.5 million. An increase of roughly 43%. So increase revenue by 4.55 and profits by 43. Sorry I dont see the problem. I dont see where they need bags fees anytime soon. I will be surprised if we see a first bag fee in the next 3 years.

If i am missing something please let me know.


WW

source: yahoo finance
http://finance.yahoo.com/q/ks?s=LUV+Key+Statistics

[Edited 2013-04-21 16:06:50]

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: ouboy79
Posted 2013-04-21 16:10:28 and read 10055 times.

Quoting enilria (Thread starter):
So, why would WN want somebody with this resume/skillset? They clearly plan to add a lot of fees going forward and it's been reported that WN's existing IT setup precludes compulsory bag fees.

If you think adding the ability to a reservation (to charge fees) is even a skill listed on this guy's resume, then you know zero about technology and probably should refrain from comment on such. I read this as more of the programming skills to manipulate an application that is very complex to do much more than its originally intended. They have Amadeus integration coming and its not going to be used network wide initially. I would be a good idea to have someone with the programming knowledge to handle complex and unique deployments. Let's not forget that Spirit initially was a relatively tame domestic operation that exploded and is now huge south of the border. Perhaps their knowledge and being familiar with international systems is key when it comes to moving those operations to WN metal sooner rather than later.

Quoting mcdu (Reply 3):
Fees are coming to WN. GK has admitted as much. Too much revenue left on the table. Also WN stopped the ludicrous bag fee commercials to try make people forget. Hopefully the humble pie to be served at WN will go down smoothly.

You're back? Shocker. What revenue is left on the table when they can just say "fares going up $10" and all the other carriers fall in line like good little obedient soldiers.

Quoting usflyguy (Reply 5):
Besides you saying so, where has that been reported. The system in place can charge for a first and second bag just as it does for bags 3-10, overweight bags, oversized bags, cargo, pets, unacommpanied minors, early-bird, business select, last-minute boarding position upgrades, etc.

Amazing how that all happens on a system that can't charge fees.  
Quoting usflyguy (Reply 5):
In your terms it was also "reported" that a codeshare between WN and FL would never come to fruition.

Funny how once bogus claims are quickly pushed aside hoping no one remembers.

Quoting commavia (Reply 8):
Again - I just do not see how WN is going to be able to continue justifying the no fee stance forever.

Until the majors start pushing back on rate increases, WN will continue to do its thing.

Quoting commavia (Reply 8):
... so asinine that WN's major competitors are collectively making literally hundreds of millions if not billions per year from them.

How much of that ancillary revenue is needed to break even and record high profits? WN is setting their own records without them. Funny how that works.

Quoting commavia (Reply 11):
The money has to come from somewhere. WN's costs have been steadily rising for the last decade, and they have to find a way to pay for it. Again - they can raise fares only to a point. At some point, I expect that WN's shareholders are going to ask how much money WN is leaving on the table without a checked bag fee.

If bag fees get added, there will be a cry to get base fares reduced then. Right now WN can just raise fares, others follow, and everything goes along to post yet another consecutive profitable year. Perhaps we'll see a different strategy though when it comes to international cities. It's hard to say at this point. However, we've all seen the masses of wrapped boxes/bags in airports like MIA and FLL going south.

Quoting BD338 (Reply 12):
What has the hiring of an IT guy got to do with baggage fees? I'm going out on a limb here and thinking that maybe they just hired the best person for the job, i doubt he will ever have any say whatsoever on introducing any fees, at the most he'll be tasked with getting the systems updated. I'm thinking they found someone with airline industry experience to help them with the Amadeus roll out...or just they needed a new CIO.

Common sense lives!  
Quoting 737tdi (Reply 13):
So why are they still losing money?? Or going bankrupt or worse, out of business??

WN has done a great job adjusting to market conditions. Everyone is envious of their financial performance over the years. Yes some belt tightening is going to be needed going forward, but I can't see them giving up a primary marketing tool able to be used against others.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: airliner371
Posted 2013-04-21 16:25:50 and read 9998 times.

Quoting awacsooner (Reply 4):
You are totally grasping at straws here. Please tell me this isn't an attempt to slam WN.

I'm pretty sure it is. There is no story in this announcement. They are just hiring someone with great knowledge in the field they hired him in.

Quoting ouboy79 (Reply 17):
I read this as more of the programming skills to manipulate an application that is very complex to do much more than its originally intended.

Exactly.

Quoting ouboy79 (Reply 17):
Funny how once bogus claims are quickly pushed aside hoping no one remembers.

  

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: SXDFC
Posted 2013-04-21 17:20:22 and read 9663 times.

Southwest has...

Hired a pilot from Qantas, Portugal, Continental, United, or better yet the Air Force, Navy, heck even a former Air Force One A/C commander and Air Force Two pilot. They even hired a Ramp Agent who used to do mx work for an apartment complex ( self plug )... Southwest like any other company likes to hire someone who they think will best fufill the requirements for the position they posted.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: infiniti329
Posted 2013-04-21 18:29:08 and read 9013 times.

Quoting commavia (Reply 8):
... so asinine that WN's major competitors are collectively making literally hundreds of millions if not billions per year from them.

Only 2 U.S. carriers charge for carry-on bags NK and G4 check your facts..

Quoting JBAirwaysFan (Reply 14):
I can see WN adding a fee for a second bag, but not the first. I'm thinking JetBlue and Southwest will be the only carriers to keep a first checked bag free for the time being. However all airlines, except Southwest charge for a second bag. I can see them matching that one. It's all about maximizing revenue, and if airlines can make money on charging to check bag number 2 then they will. Southwest's cost structure is not as low as it used to be, and I can see this happening.

I completely agree, the majority of passengers usually check one bag, a small percentage check two or more bags per flight

The new CTO hiring, I think has everything to do with WN's international expansion and the new domestic/international reservation system and nothing to do with any of these ridiculous fees

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: Sasha
Posted 2013-04-21 19:01:06 and read 8736 times.

It does seem to be a bit of a stretch to assume that a whole new IT guy was brought in to facilitate/enlarge fee/fare databases and management systems. The IT Dept will inevitably have involvement in whatever integration is needed between the inventory system and DCS + load planning, but hopefully the construction of the fees is still handled by Sales and Commercial Dept staff in this world.  

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: txjim
Posted 2013-04-21 19:27:41 and read 8514 times.

Quoting SXDFC (Reply 19):
Hired a pilot from Qantas, Portugal, Continental, United, or better yet the Air Force, Navy, heck even a former Air Force One A/C commander and Air Force Two pilot.

You left out Cubana!

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: chrisair
Posted 2013-04-21 19:39:49 and read 8403 times.

Quoting enilria (Thread starter):
So, why would WN want somebody with this resume/skillset?

Because WN's IT systems are atrocious.

Quoting SXDFC (Reply 19):
Southwest has...

Hired a pilot from Qantas, Portugal, Continental, United, or better yet the Air Force, Navy, heck even a former Air Force One A/C commander and Air Force Two pilot.

You forgot the astronaut....

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: Cubsrule
Posted 2013-04-21 19:52:31 and read 8273 times.

Quoting commavia (Reply 15):
Thus why I think eventually shareholders are going to be more loudly asking to see the numbers WN continues to use to justify relatively fewer fees than competitors.

Are you suggesting that these comments by Gary Kelly were lies? If so, you ought to call the U.S. attorney, as Mr. Kelly has committed a federal offense.

Quote:
Southwest added two percentage points of market share, increased passenger loads by 10% and brought in $2 billion in incremental annual revenue--at a cost of $500 million or so in forgone bag fees. "We added 24% more revenue per mile without buying another plane," says Kelly.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: bobloblaw
Posted 2013-04-21 20:03:56 and read 8426 times.

Quoting commavia (Reply 8):
... so asinine that WN's major competitors are collectively making literally hundreds of millions if not billions per year from them.

Only Allegiant and Spirit charge for carryons........for now.

Quoting commavia (Reply 8):
Sure they can. Many - myself included - expect they will at some point have to one way or another.

WN will destroy their brand if they backtrack on something like Bags Fly Free. I think they can get away with charging for a second bag, but not a first bag. They have gone too far down that road to turn back.

Quoting commavia (Reply 15):
Thus why I think eventually shareholders are going to be more loudly asking to see the numbers WN continues to use to justify relatively fewer fees than competitors.


You don't seem to understand that WN's biggest asset is it brand. They would do serious damage to it by charging for a 1st bag. There was a point when WN could have charged for a first bag. But they didn't. Now they are stuck with it.
Most WN share holders are long term. They can easily be convinced that WN will lose something far more than revenue if WN flip flops on Bags Fly Free. Reversing Bags Fly Free will be a bigger debacle than New Coke.

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: Deltal1011man
Posted 2013-04-21 20:23:47 and read 8238 times.

Quoting 737tdi (Reply 13):
So why are they still losing money?? Or going bankrupt or worse, out of business??

other than AA want to point who is going bankrupt or out of business?

or is this one of of those deals where your talking about 10 years ago?

Topic: Southwest Hires Head IT Guy For NK. Hmm...
Username: 7673mech
Posted 2013-04-21 22:22:52 and read 7591 times.

Quoting chrisair (Reply 23):

You forgot the astronaut....

And don't forget the chap from Sawyer Brown!

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: mastyc
Posted 2013-04-21 22:57:57 and read 7452 times.

Quoting infiniti329 (Reply 20):
The new CTO hiring, I think has everything to do with WN's international expansion and the new domestic/international reservation system and nothing to do with any of these ridiculous fees

Exactly what I took from it.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: enilria
Posted 2013-04-22 07:27:21 and read 5278 times.

Quoting azjubilee (Reply 1):

OR... they just want someone who is good at what they do.

...and what he does is evolve RES systems into being able to do innovative things and those innovations in this industry involve fees.

Quoting bobloblaw (Reply 2):
WN can no way begin charging for bags, at least not the first.

Wait and see. It's not coming any time soon.

Quoting mcdu (Reply 3):
Hopefully the humble pie to be served at WN will go down smoothly.

I think it will. There is nowhere else to go. I hate bag fees too, but it's just reality at this point.

Quoting awacsooner (Reply 4):
You are totally grasping at straws here. Please tell me this isn't an attempt to slam WN.

Why would suggesting a company may do what all its competitors are already doing be a slam?

Quoting awacsooner (Reply 4):
Because the rest of the legacies aren't stupid enough to go there. Charging for carry-ons has got to be the most asinine fee the airlines have come up with yet...and I have nothing but ill-feelings towards them.

It's the reason NK is profitable and why it was brilliant has nothing to do with the revenue it generates from customers. It's brilliant because the legacies can't or won't match it. So, they have a price advantage. The only way a small guy can make money in this industry is to not be matched. G4 does it with packages and NK does it with the fee.

Quoting usflyguy (Reply 5):
You're thinking of Randy Sloan and he is VP and Chief Information Officer and is still at WN.

OK, they keep adding so many similar positions over there it's hard to tell.

Quoting usflyguy (Reply 5):
Besides you saying so, where has that been reported.

The Wall Street Journal and PlaneBusiness.com.

Quoting usflyguy (Reply 5):
The system in place can charge for a first and second bag just as it does for bags 3-10, overweight bags, oversized bags, cargo, pets, unacommpanied minors, early-bird, business select, last-minute boarding position upgrades, etc.

You missed the word "compulsory". There is no way in WN's existing system to deny boarding unless fees on checked bags are paid. Basically, they can collect money for anything, but there is no audit system and no way to make sure the agents collect it.

Quoting ouboy79 (Reply 17):
If you think adding the ability to a reservation (to charge fees) is even a skill listed on this guy's resume, then you know zero about technology and probably should refrain from comment on such. I read this as more of the programming skills to manipulate an application that is very complex to do much more than its originally intended. They have Amadeus integration coming and its not going to be used network wide initially. I would be

So you understand more about airline IT...there are few system choices left for airlines to use. The big ones are Sabre and EDS plus Amadeus and Navitaire. Each has many customers. None of them have any interest in altering their systems to create special features that only one customer will use. They make much more money building a new feature like web-check-in and then selling the feature over and over again to a dozen customers. It also makes the price lower.

The airlines are the reverse. They all want to differentiate their products. This guy has a background of being able to integrate those two disparate needs. You can always go to Sabre and write a check for $10 million and they will develop anything you want, but these types of changes aren't worth that kind of development charge. What this guy has done is found ways to use third-party software solutions and tie them into the RES system through "hooks", "backdoors", "kludges" whatever you want to call them in order to make it work well enough and cheaply enough. Southwest's system is in-house so they can change it if they wish, but it's so old and complex that they have stopped developing it and are also pursuing these "hooks" to make it do what it they want it to do. Amadeus finally found a "hook" to make the Southwest system process code share by making the system think it is a normal flight. Amadeus probably charged an arm and a leg for that...or got a commitment to switch fully over to Amadeus in the future.

Bottom line is that whatever system you have, it is too expensive to rewrite the code of it. It is much cheaper to write a standalone app on a backed up server that charges fees, verifies they have been paid, etc. by hooking into your existing system through a "hook". That's what this guy has experience with in terms of knowing what "hooks" there are and what third parties can succeed writing apps for those "hooks". Keep in mind that WN tried for 5 years with internal resources to implement code share and was never able to do it until they brought in Amadeus.

Quoting Sasha (Reply 21):

It does seem to be a bit of a stretch to assume that a whole new IT guy was brought in to facilitate/enlarge fee/fare databases and management systems.

Nope, fits with comments by Kelly from 2 months ago.

"That’s the trick here — to try to find ways to generate more revenue in a way that is customer friendly. If we do that, then it will help keep the rest of our fare structure down, and that’s the goal. And not to do it with hidden fees that people just totally despise.

It’s not a fee. It’s a version of a fare that gives a few more amenities; i.e., you get to board earlier."

http://www.vegasinc.com/news/2013/fe...s-ceo-talks-about-fares-fees-and-/

Quoting chrisair (Reply 23):
Quoting enilria (Thread starter):
So, why would WN want somebody with this resume/skillset?

Because WN's IT systems are atrocious.

Exactly

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: WesternA318
Posted 2013-04-22 07:42:16 and read 5150 times.

Quoting mcdu (Reply 3):
Fees are coming to WN. GK has admitted as much. Too much revenue left on the table. Also WN stopped the ludicrous bag fee commercials to try make people forget. Hopefully the humble pie to be served at WN will go down smoothly

It's about damn time some of that Humble ie gets served to WN and its ilk. They need it in the worse possible way, cant for the traveling public to think of them as just another airline.

Quoting commavia (Reply 8):
... so asinine that WN's major competitors are collectively making literally hundreds of millions if not billions per year from them.

Some might even be making more money off their baggage fees than they do actually flying their pax from pt. A to pt. B (depending on the flight of course)

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: FlyPNS1
Posted 2013-04-22 08:14:30 and read 4820 times.

Quoting enilria (Reply 29):
"That’s the trick here — to try to find ways to generate more revenue in a way that is customer friendly. If we do that, then it will help keep the rest of our fare structure down, and that’s the goal. And not to do it with hidden fees that people just totally despise.

It’s not a fee. It’s a version of a fare that gives a few more amenities; i.e., you get to board earlier."

Doesn't sound like he is interested in bag fees as you claim from this statement. In fact, just the opposite.

Quoting commavia (Reply 15):
In fact, WN's margin performance in recent quarters actually hasn't been particularly amazing compared with some competitors with checked bag fees.

But that has little to do with bag fees and more to do with almost all those carriers filing bankruptcy and perpetually shrinking to drive up RASM.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: enilria
Posted 2013-04-22 08:41:17 and read 4587 times.

Quoting enilria (Thread starter):
Southwest Hires Head IT Guy For NK. Hmm... 

BTW, the mods renamed the thread and in the process misspelled "From" to "For". Don't blame me...

Quoting FlyPNS1 (Reply 31):
Doesn't sound like he is interested in bag fees as you claim from this statement. In fact, just the opposite.

Since when are bag fees hidden?

Also: "You scared customers across the country recently with your “never say never” response when asked whether Southwest would abandon its “bags fly free” policy. Have there been discussions about modifying the policy?

That comment was intentional. It wasn’t a slip, it wasn’t a mistake. It was the truth. But it was under cross-examination by CNBC. We have no plans to charge for bags. None. The question was along the lines of, “Will you ever do that?” Of course, I can’t promise that into infinity we won’t."

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: FlyPNS1
Posted 2013-04-22 09:09:43 and read 4359 times.

Quoting enilria (Reply 32):
Since when are bag fees hidden?

No fees are technically hidden. All airlines document all their fees as required by law. The difference are fees you expect to pay to get something extra (say priority boarding) versus paying fees for things you never paid for and aren't an amenity (say checking a bag).

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: XEspecialist
Posted 2013-04-22 09:24:54 and read 4168 times.

This individual is being brought in for a VERY specific skill set and experience he has with Amadeus and the company that created Results/DCS (Departure Control System). If you look at the screenshot at this link, you'll see an example of what they've helped Spirit do. As you can see in the photo, it shows TASAR as used by Spirit (another module if you will) http://www.rrtechnologies.net/products.html We used a simplified version at Expressjet when we launched the branded operation, and they were a pleasure to work with. Their whole philosophy and product revolve around customizing their suite of overlays to optimize their client operations. This is the reason they hired him. Gary Kelly wants this integration done YESTERDAY.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: enilria
Posted 2013-04-22 09:28:47 and read 4107 times.

Quoting FlyPNS1 (Reply 33):
No fees are technically hidden. All airlines document all their fees as required by law. The difference are fees you expect to pay to get something extra (say priority boarding) versus paying fees for things you never paid for and aren't an amenity (say checking a bag).

Reading between the lines it is pretty clear that while they have not decided to charge bag fees for first bag, they are evaluating it. In fact, it says very clearly that they just completed a study to determine whether it was worth it. equivocates on the analysis a bit, but says it justified free bags at this time. Looks pretty clearly like they are laying the groundwork to change the policy in the future. When is the only question...

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: IrishAyes
Posted 2013-04-22 09:33:00 and read 4081 times.

Quoting bobloblaw (Reply 25):
WN will destroy their brand if they backtrack on something like Bags Fly Free. I think they can get away with charging for a second bag, but not a first bag. They have gone too far down that road to turn back.

I think that's a huge stretch. People fly WN for more than just the no-fees campaign.

Here in Chicago, for example, the market is very fragmented between three "choice" airlines. You would be surprised by now many business travelers fly WN despite the obvious "perks" one gets earning status with AA and UA. Obviously, yes, the absence of checked bags fees and change/cancel fees are a huge plus, but people buy into the WN brand because MDW is an easier airport to fly in/out of, its closer to the city (and easier to get to on Monday mornings), service is usually consistent, reliable and friendly, and there are opt-up perks such as early boarding, priority screening, etc.

People have their various reasons to love airline brands and its usually subjective.

I, for one, have basically surrendered my loyalty to United. I have UA Club access, TSA pre-check, and have gotten CPUs on probably 50% of my flights in 2013.

I fail to mention that I've also been delayed 2-3 hours (on average) on over 50% of said flights, due to MX, crew, wx, IRROPs, etc. Despite the "perks" I am getting by flying UA as an elite, I'm not arriving to my destination on-time. So, I'm just as screwed as everyone else.

Quoting bobloblaw (Reply 25):
You don't seem to understand that WN's biggest asset is it brand. They would do serious damage to it by charging for a 1st bag. There was a point when WN could have charged for a first bag. But they didn't. Now they are stuck with it.

They are not "stuck" to anything. They've just held out longer than their competitors. The model has changed over the years and people have not always been happy with the changes (i.e. the RR program overhaul, the revamped boarding process, charging for alcoholic beverages, removal of snack boxes on long-haul flights, etc). It's inane to conclude that the consumers are so resistant to change in the airline industry that they're willing to abandon a carrier for a policy change, simply because rules have changed over and over again, and guess what, people still need to fly.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: floorrunner
Posted 2013-04-22 10:37:17 and read 3592 times.

Quoting bobloblaw (Reply 25):
Most WN share holders are long term. They can easily be convinced that WN will lose something far more than revenue if WN flip flops on Bags Fly Free. Reversing Bags Fly Free will be a bigger debacle than New Coke.

I am a Southwest shareholder, close to 5000 shares, and I absolutely agree with this.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: ouboy79
Posted 2013-04-22 10:52:25 and read 3437 times.

Quoting enilria (Reply 29):
So you understand more about airline IT...there are few system choices left for airlines to use. The big ones are Sabre and EDS plus Amadeus and Navitaire. Each has many customers. None of them have any interest in altering their systems to create special features that only one customer will use. They make much more money building a new feature like web-check-in and then selling the feature over and over again to a dozen customers. It also makes the price lower.

Wow condescending much? I'm well aware and very familiar with the options available out there. As well as the technology behind them. Come back to me when you have a CIS/IT degree and actually understand the workings behind the scenes before making claims.

Quoting enilria (Reply 29):
Southwest's system is in-house so they can change it if they wish, but it's so old and complex that they have stopped developing it and are also pursuing these "hooks" to make it do what it they want it to do.

Stopped developing it? Ehhh. Maybe major additions but feature enhancements still come out regularly. Perhaps stick to talking about something you actually have knowledge on.

Quoting floorrunner (Reply 37):
I am a Southwest shareholder, close to 5000 shares, and I absolutely agree with this.

It's amazing how a few who have no stake in LUV can claim what those of us that are stake/shareholders actually want.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: enilria
Posted 2013-04-22 11:02:00 and read 3389 times.

Quoting IrishAyes (Reply 36):
Quoting bobloblaw (Reply 25):
WN will destroy their brand if they backtrack on something like Bags Fly Free. I think they can get away with charging for a second bag, but not a first bag. They have gone too far down that road to turn back.

I think that's a huge stretch. People fly WN for more than just the no-fees campaign.

I agree. As much as I'd personally hate to see it happen, they'd still be heroes for holding out the longest. From a financial perspective they really need to start collecting bag1 and bag2 fees. The bigger problem is that with NK charging the carry-on fee they are going to be able to eat WN alive. NK can publish fares with basically no bags included and WN has both included. I don't think consumers are disciplined enough to turn away from a low price point. Also, it's essentially a lay-away plan in that you can pay part later and also no ticket tax helps a little too.

Quoting IrishAyes (Reply 36):
They are not "stuck" to anything. They've just held out longer than their competitors.

Exactly...

Quoting floorrunner (Reply 37):
Quoting bobloblaw (Reply 25):
Most WN share holders are long term. They can easily be convinced that WN will lose something far more than revenue if WN flip flops on Bags Fly Free. Reversing Bags Fly Free will be a bigger debacle than New Coke.

I am a Southwest shareholder, close to 5000 shares, and I absolutely agree with this.

People said the same thing with AirTran and the legacies and it really changed little in terms of loss of loyalty. I'd argue it discourages leisure travel to charge for bags, but nobody really cares about leisure any more (except G4) including WN.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: 737tdi
Posted 2013-04-22 18:49:28 and read 2540 times.

Quoting Deltal1011man (Reply 26):
or is this one of of those deals where your talking about 10 years ago?

Please notice my statement.

Quoting Deltal1011man (Reply 26):
Quoting 737tdi (Reply 13):
So why are they still losing money?? Or going bankrupt or worse, out of business??

It plainly says "Or going bankrupt.....". If you continuously post losses you will end up in bankruptcy court because, just like everyone, a business has to pay their bills.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: solarflyer22
Posted 2013-04-22 19:55:30 and read 2403 times.

I think this is probably a sign of the future. I love WN and one of the main reasons I book with them is because I can change tickets without a fee. Usually there is a fare difference but I am actually willing to pay more in some cases for piece of mind. I don't really blame WN. Its the fact the industry is moving this way. I do wish more customers were aware of the difference in offerings though.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: Deltal1011man
Posted 2013-04-22 20:22:21 and read 2355 times.

Quoting 737tdi (Reply 40):

It plainly says "Or going bankrupt.....". If you continuously post losses you will end up in bankruptcy court because, just like everyone, a business has to pay their bills.

and I asked what airline is doing this?

Delta is likely going to be posting the (real) Q1 profit tomorrow in..............uh....... at least 10 years. I'm guessing late 90s.
LCC will likely be at least close to Q1 profit. UAL is a train wreck(as is LCC) and is still making money. WN is making money.
AS is an investors dream(for an airline) HA/NK are doing well.
About the only airline i can think of that is having issues(outside of AMR) is F9. The rest of this industry is as health as it has ever been.

so just who are you talking about?

oh and IIRC Delta has been making nearly a billion off of "fees". Thats billion WN is leaving on the table. Someone what to explain why I would be happy about that as a shareholder?

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: Flighty
Posted 2013-04-22 20:24:31 and read 2352 times.

Quoting commavia (Reply 8):
But at some point, I still contend they will simply run out of justifications to shareholders as to why they are leaving potentially hundreds of millions in revenue on the table.

  

 checkmark 

It has been fun watching WN get lauded for operating such a "new and different" model, which to all the industry looks like a low-revenue model. They are giving away money. When the going gets tough, that _goes away_. It just goes away. First class is another thing they might get, if they actually start caring, really caring.

[Edited 2013-04-22 20:40:52]

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: Cubsrule
Posted 2013-04-23 05:07:21 and read 2128 times.

Quoting Flighty (Reply 43):
They are giving away money.

Gary Kelly has suggested just the opposite. How do you know you are correct? Certainly, given the airlines' historical record of lack of profitability compared with WN's consistent profits, "everyone else is doing it" isn't a very good justification.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: Deltal1011man
Posted 2013-04-23 05:34:36 and read 2089 times.

Quoting Cubsrule (Reply 44):
Gary Kelly has suggested just the opposite. How do you know you are correct? Certainly, given the airlines' historical record of lack of profitability compared with WN's consistent profits, "everyone else is doing it" isn't a very good justification.

Because every other is making money doing it. The fee numbers airlines are posting proves that it works.

WN has nothing to to loose. Other than an a.net thread bashing them....what are you going to do? you can drive or walk basically.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: Cubsrule
Posted 2013-04-23 05:40:45 and read 2074 times.

Quoting Deltal1011man (Reply 45):
Because every other is making money doing it. The fee numbers airlines are posting proves that it works.

The fee numbers prove nothing more than that fees bring in revenue, which is obvious. How much fare revenue do fees cause the OALs to leave on the table? As far as I know, no one with fees has attempted to quantify that.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: WesternA318
Posted 2013-04-23 06:10:33 and read 2041 times.

Quoting Deltal1011man (Reply 42):
Delta is likely going to be posting the (real) Q1 profit tomorrow in..............uh....... at least 10 years. I'm guessing late 90s.
LCC will likely be at least close to Q1 profit. UAL is a train wreck(as is LCC) and is still making money. WN is making money.

As a shareholder of LCC, I must say they;ve been doing pretty good these last few years. They are not a train wreck of any sort. UAL (I hope) will forever be a train wreck, and DL has posted a few profits recently.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: SKC
Posted 2013-04-23 06:50:02 and read 1983 times.

Quoting WesternA318 (Reply 30):
It's about damn time some of that Humble ie gets served to WN and its ilk. They need it in the worse possible way, cant for the traveling public to think of them as just another airline.

I know! It's so horrible to be continuously profitable for 38+ years in an industry that does the opposite. It's ghastly to think a company could have employees that actually enjoy their jobs. I shudder thinking about customers that like their product. Boy howdy, WN really has messed things up. I hope they get whats coming to them.   

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: mcg
Posted 2013-04-23 07:18:09 and read 1930 times.

Quoting bobloblaw (Reply 25):
WN's biggest asset is it brand. They would do serious damage to it by charging for a 1st bag. There was a point when WN could have charged for a first bag. But they didn't. Now they are stuck with it.
Most WN share holders are long term. They can easily be convinced that WN will lose something far more than revenue if WN flip flops on Bags Fly Free. Reversing Bags Fly Free will be a bigger debacle than New Coke.

I couldn't agree more. "Bags Fly Free" is the most successful marketing campaign in any business in a very long time. It defines why Southwest is different and better than all the other airlines. It sells lot's of plane tickets and I suspect helps WN charge a fare premium compared to the competition. Is it expensive? Yes it is, but it is very much worth the cost. I'd be very surprised if "Bags Fly Free" went away.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: Flighty
Posted 2013-04-23 07:25:42 and read 1912 times.

Quoting Cubsrule (Reply 44):
Certainly, given the airlines' historical record of lack of profitability compared with WN's consistent profits, "everyone else is doing it" isn't a very good justification.

Yes, to a large extent WN is a different business (lots of nonstop mainline through a peculiar and unique network style). and they can't be called equal. Let's agree about that. But, many of the others (let's take United and Delta) have tried these issues both ways.

* Is Ted or Song so much more efficient that it justifies removing F? That's an open question. UA and DL made one conclusion; WN makes the other.

* Do bag fees increase or decrease revenue? WN is alone thinking they decrease revenue (and they may be right). The cost is probably a wash between slight boarding delays and decreased bag handling cost / delay.

* Do regional carriers save money and increase profits? Many carriers can choose to dismantle regional flying. But that would be crazy because they know it makes money versus adding mainline.

* Do people like reserved seating or not? UA could get rid of it tomorrow. Probably wouldn't be smart, though.

Here just substantiating _why_ people raise questions about WN, not saying WN is wrong. Hopefully _they_ are open to these questions internally, though. Particularly when/if losses occur. Respect them though.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: cv990coronado
Posted 2013-04-23 07:36:01 and read 1897 times.

I flew in the US for the first time in years in November and was dreading it after all the horror stories about service or the lack there of. After arriving on Virgin upper class I thought I was in for a shock. I used to fly on the legacies but I thought I would try WN as they didn't charge for bags and the timings were good MCOSAT LASSMF. Well what a great airline friendly,on-time with nice clean planes. We even mislaid a passport so had to change a flight. They were courteous, helpful and very efficient. I will certainly make them my first choice next time in the USA. They weren't the cheapest last time but when you add bag fees and the peace of mind they are only way to go for me. I wish I had bought shares in them they must be one of the only good investments in the airline world. The staff really seem to care and they offer a good product at a fair price.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: Cubsrule
Posted 2013-04-23 07:59:59 and read 1849 times.

Quoting Flighty (Reply 50):
Do people like reserved seating or not? UA could get rid of it tomorrow. Probably wouldn't be smart, though.

WN experimented with assigned seating 5 or 6 years ago, which I think shows they are open to questions about their model. At the end of the day, though, it's hard to argue with their track record of financial success, particularly when thinking about the radical changes WN has undergone over the years.

Quoting Flighty (Reply 50):
Many carriers can choose to dismantle regional flying. But that would be crazy because they know it makes money versus adding mainline.

Most US carriers have acknowledged that their regionals got far too big. Unwinding that is a lengthy process, though. Still, look at all of the regional carriers that have died over the past five years (OH, F8, AL) as well as those in danger (ZW, YV).

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: glbltrvlr
Posted 2013-04-23 08:09:21 and read 1824 times.

Quoting Flighty (Reply 43):
When the going gets tough, that _goes away_.

Just out of idle curiosity, when does that happen? I mean, compared to recent history of near $100/bbl oil, economic recession over the past 5 years, competing with carriers who have lowed their cost structure through bankruptcy, etc. I can't imagine what your concept of tough is.

Topic: RE: Southwest Hires Head IT Guy For NK. Hmm...
Username: OB1504
Posted 2013-04-23 19:12:14 and read 1547 times.

Quoting BD338 (Reply 12):
What has the hiring of an IT guy got to do with baggage fees? I'm going out on a limb here and thinking that maybe they just hired the best person for the job, i doubt he will ever have any say whatsoever on introducing any fees, at the most he'll be tasked with getting the systems updated. I'm thinking they found someone with airline industry experience to help them with the Amadeus roll out...or just they needed a new CIO.

   Mr. Maccubbin was at Spirit during their transformation to an ultra-low-cost-carrier and they're now raking in the profits. It makes sense that Southwest would want an executive who brings in money. Congratulations to him on his new position, and my eternal thanks to him for helping make the system used by agents at Spirit so user-friendly.

Quoting ouboy79 (Reply 17):
However, we've all seen the masses of wrapped boxes/bags in airports like MIA and FLL going south.

   American makes a tidy profit from checked/excess/overweight/oversize baggage fees at Miami. I can't blame Southwest for wanting a slice of that pie on their international flights, too.

Quoting bobloblaw (Reply 25):
Only Allegiant and Spirit charge for carryons........for now.

   This is why so many A.net users were up in arms when Spirit first announced their carry-on baggage charge. It wasn't because they planned on flying Spirit anytime soon, but rather because they knew that it was only a matter of time before such a fee became standard across the industry. Look at what Spirit started with checked baggage fees.


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