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Southwest Hires Head IT Guy For NK. Hmm...  
User currently offlineenilria From Canada, joined Feb 2008, 6838 posts, RR: 14
Posted (12 months 4 days 5 hours ago) and read 11124 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

54 replies: All unread, showing first 25:
 
User currently offlineazjubilee From United States of America, joined Apr 2000, 3799 posts, RR: 28
Reply 1, posted (12 months 4 days 5 hours ago) and read 11092 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.

User currently offlinebobloblaw From United States of America, joined Jan 2012, 1446 posts, RR: 1
Reply 2, posted (12 months 4 days 4 hours ago) and read 10874 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.


User currently offlinemcdu From United States of America, joined Apr 2005, 1436 posts, RR: 17
Reply 3, posted (12 months 4 days 4 hours ago) and read 10863 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.


User currently offlineawacsooner From United States of America, joined Jan 2008, 1800 posts, RR: 1
Reply 4, posted (12 months 4 days 4 hours ago) and read 10758 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.


User currently offlineusflyguy From United States of America, joined Jan 2012, 790 posts, RR: 0
Reply 5, posted (12 months 4 days 4 hours ago) and read 10697 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.



My post is my ideas and my opinions only, I do not represent the ideas or opinions of anyone else or company.
User currently offlinebobloblaw From United States of America, joined Jan 2012, 1446 posts, RR: 1
Reply 6, posted (12 months 4 days 3 hours ago) and read 10516 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.


User currently offlineaztrainer From United States of America, joined Oct 2011, 517 posts, RR: 1
Reply 7, posted (12 months 4 days 3 hours ago) and read 10461 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.


User currently offlinecommavia From United States of America, joined Apr 2005, 11121 posts, RR: 62
Reply 8, posted (12 months 4 days 3 hours ago) and read 10437 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.


User currently offlineRWA380 From United States of America, joined Feb 2005, 2885 posts, RR: 5
Reply 9, posted (12 months 4 days 2 hours ago) and read 10259 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.



Rule number One, NEVER underestimate the other guys greed
User currently offlineawacsooner From United States of America, joined Jan 2008, 1800 posts, RR: 1
Reply 10, posted (12 months 4 days 2 hours ago) and read 10195 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...


User currently offlinecommavia From United States of America, joined Apr 2005, 11121 posts, RR: 62
Reply 11, posted (12 months 4 days 2 hours ago) and read 10190 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.


User currently offlineBD338 From United States of America, joined Jul 2010, 697 posts, RR: 0
Reply 12, posted (12 months 4 days 2 hours ago) and read 10190 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.

User currently offline737tdi From United States of America, joined Sep 2007, 642 posts, RR: 1
Reply 13, posted (12 months 4 days 2 hours ago) and read 10146 times:
Support Airliners.net - become a First Class Member!

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??


User currently offlineJBAirwaysFan From United States of America, joined May 2009, 912 posts, RR: 0
Reply 14, posted (12 months 4 days 2 hours ago) and read 10135 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.


In Loving Memory of Casey Edward Falconer; May 16, 1992-May 9, 2012
User currently offlinecommavia From United States of America, joined Apr 2005, 11121 posts, RR: 62
Reply 15, posted (12 months 4 days 2 hours ago) and read 10086 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.


User currently offlinewwtraveler99 From United States of America, joined Sep 2008, 293 posts, RR: 0
Reply 16, posted (12 months 4 days 2 hours ago) and read 10050 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]

User currently offlineouboy79 From United States of America, joined Nov 2001, 4482 posts, RR: 22
Reply 17, posted (12 months 4 days 1 hour ago) and read 9990 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.



Any opinion/comment posted is that of my own and not that of Southwest Airlines Co.
User currently offlineairliner371 From United States of America, joined Aug 2012, 1280 posts, RR: 1
Reply 18, posted (12 months 4 days 1 hour ago) and read 9933 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.

  



You will either love or hate the airline industry. If you love it, it will get in your blood and it will never leave.
User currently offlineSXDFC From United States of America, joined Dec 2007, 2226 posts, RR: 19
Reply 19, posted (12 months 4 days ago) and read 9598 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.



ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
User currently offlineinfiniti329 From United States of America, joined Jul 2012, 469 posts, RR: 0
Reply 20, posted (12 months 3 days 23 hours ago) and read 8948 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


User currently offlineSasha From Russia, joined May 1999, 861 posts, RR: 0
Reply 21, posted (12 months 3 days 23 hours ago) and read 8671 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.  


An2/24/28,Yak42,Tu154/134,IL18/62/96,B737/757/767,A310/320/319,F100,BAe146,EMB-145,CRJ,A340-600,B747-400,A-330-300,A-340
User currently offlinetxjim From United States of America, joined May 2008, 237 posts, RR: 0
Reply 22, posted (12 months 3 days 22 hours ago) and read 8449 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!


User currently offlinechrisair From United States of America, joined Sep 2000, 2001 posts, RR: 3
Reply 23, posted (12 months 3 days 22 hours ago) and read 8338 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....


User currently offlineCubsrule From United States of America, joined May 2004, 22308 posts, RR: 20
Reply 24, posted (12 months 3 days 22 hours ago) and read 8208 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.



I can't decide whether I miss the tulip or the bowling shoe more
25 bobloblaw : Only Allegiant and Spirit charge for carryons........for now. WN will destroy their brand if they backtrack on something like Bags Fly Free. I think
26 Deltal1011man : 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?
27 7673mech : And don't forget the chap from Sawyer Brown!
28 mastyc : Exactly what I took from it.
29 Post contains links enilria : ...and what he does is evolve RES systems into being able to do innovative things and those innovations in this industry involve fees. Wait and see.
30 WesternA318 : 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 t
31 FlyPNS1 : Doesn't sound like he is interested in bag fees as you claim from this statement. In fact, just the opposite. But that has little to do with bag fees
32 enilria : BTW, the mods renamed the thread and in the process misspelled "From" to "For". Don't blame me... Since when are bag fees hidden? Also: "You scared c
33 FlyPNS1 : 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 e
34 Post contains links XEspecialist : 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 (Departu
35 enilria : 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 s
36 IrishAyes : 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 bet
37 floorrunner : I am a Southwest shareholder, close to 5000 shares, and I absolutely agree with this.
38 ouboy79 : 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
39 enilria : 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 reall
40 737tdi : Please notice my statement. It plainly says "Or going bankrupt.....". If you continuously post losses you will end up in bankruptcy court because, ju
41 solarflyer22 : 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. U
42 Deltal1011man : 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
43 Post contains images Flighty : 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
44 Cubsrule : Gary Kelly has suggested just the opposite. How do you know you are correct? Certainly, given the airlines' historical record of lack of profitabilit
45 Deltal1011man : 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.
46 Cubsrule : 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 ta
47 WesternA318 : 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 fo
48 Post contains images SKC : 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 hav
49 mcg : 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 dif
50 Flighty : 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 eq
51 cv990coronado : 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 ar
52 Cubsrule : 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, thou
53 glbltrvlr : 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,
54 Post contains images OB1504 : 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 South
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