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Airlines Still Struggle With Paths To Profit  
User currently offlineSyncmaster From United States of America, joined Jul 2002, 2027 posts, RR: 10
Posted (10 years 8 months 1 week 6 days 11 hours ago) and read 2066 times:
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Sorry if this has been posted before.

I found this very interesting article on MSNBC today, what do you think?

http://msnbc.msn.com/id/3679292/

2 replies: All unread, jump to last
 
User currently offlineTango-Bravo From United States of America, joined Jun 2001, 3805 posts, RR: 29
Reply 1, posted (10 years 8 months 1 week 6 days 9 hours ago) and read 2029 times:

One of the best articles I've read concerning the non-profit legacy airline industry. Very realistic in getting through the smoke and spin and lame excuses the legacy airlines throw at us in attempting to explain their abysmal manegerial ineptitude.

Bottom line is: you cannot go on indefinitely in any industry, including the airlines, giving customers more than they are willing to pay for. While the legacy airlines can get away with such folly during the fat times, when times are merely good to average, the consequences are devastating, or even fatal.

Southwest has proven over the long haul (30 plus years) that it is possible to earn a consistent profit and have consistently satisfied customers by offering only what customers are willing to pay for. Herb Kelleher put SWA's priorities something like: put your People (employees) first, which means they will treat Customers well, which will make the Shareholders happy. The CEOs of the legacy airlines (by the walk they walk) would maintain that Southwest has these priorities backwards -- and that is the long and short of why the legacy airline CEOs are the heads of non-profit organizations. Their steadfast refusal to see the obvious and deal with it attests to their incompetence as managers.


User currently offlineMoodyBlues From United States of America, joined Dec 2003, 142 posts, RR: 4
Reply 2, posted (10 years 8 months 1 week 6 days 6 hours ago) and read 1994 times:

You said that so well that I can't really elaborate on it any more Tango-Bravo.

The writer of that article, Jon Bonne seems to do his homework,and then put it in a manageable article us laymen can understand.

He wrote a whole series called "Ailing Airlines" or something like that, very interesting.

Of course... Read "Nuts" a great book that explains why Southwest prevails while others struggle and fall.


Southwest Airlines "A Symbol of Freedom"



Southwest Airlines "A Symbol of Freedom"
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