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Usairwys757
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How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:09 am

How is WN so succesfull? What are their keys to being a succesfull airline? I have never understood how they do it? They are a threat to many major US airlines in the business. I mean, is their business plan that good? I dont know how they do it. How do you guys think they do it?

[Edited 2003-11-18 00:14:35]
Inactive.....
 
luv2fly
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:20 am

They constantly deliver what they say they are going to. They get you safely from point A to point B. They also are not out trying to be all things to all people, and they stay true to there business plan. Yes it is simple and that is why others think it does not or would not be a success like it has been...... 30 years and going strong. Argue with success.
You can cut the irony with a knife
 
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Aaron747
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:23 am

A solid business plan w/three key components:

- Delivering consistent, uniform product
- Careful expansion planning, cost control and revenue growth expectation
- Promote high employee morale and retention
If you need someone to blame / throw a rock in the air / you'll hit someone guilty
 
phxmkeflyer
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:24 am

They unlike many of the major's have a very-low cost structure, they only have to fill their planes to 65-70% where as US Airways for example(prior to emergence from bankruptcy) had to fill their planes to 85-90% capacity to make a profit. Also SWA flies into airports whci charge less for landing slots/fees such as BWI instead of DCA or IAD, LUV instead of DFW, and OAK instead of SFO....etc.

Hope this helps

PHXMKEflyer
 
AIR757200
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:26 am


They get you safely from point A to point B.

Well, not to nitpick, but so will American, Delta, Northwest, AirTran, Spirit, etc. etc. etc. etc.
 
luv2fly
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:30 am

True and what is the difference in service levels between American, Delta and Northwest compared to WN? Sure you can get a seat assignment ahead of time, tho the levels offered by the so called majors and the LCC's are neck and neck..... And WN actually appreciates your business and genuinely are appreciative of you flying with them.
You can cut the irony with a knife
 
jeffrey1970
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:43 am

I have a feeling is the main difference is how the customers are treated. Yes, there have been some people who have been treated poorly on Southwest, and yes there are many good employees for other airlines who treated customers good. However at Southwest, good customer service seems to be deeply rooted in the company because of the influence of Herb Kehller (not sure of the spelling).

God bless through Jesus,

Jeff
God bless through Jesus, Jeff
 
luv2fly
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:46 am

Jeffrey1970

I think you said what I was trying to get across, THANKS
You can cut the irony with a knife
 
planemaker
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:47 am

I'm surprised that everyone has mainly focused on the cost or service side and haven't yet mentioned that South West also attracts passengers because of their "fair" fares - simple, reasonably low priced, and with no restrictions!

Nationalism is an infantile disease. It is the measles of mankind. - A. Einstein
 
nonrevman
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:47 am

Two other big factors apply here:

Quick turns: I had to fly them last night LIT-DAL. Everyone was already in line to board even before the plane was at the gate. Preboards, Group A, and Group B were all boarded in a matter of minutes. As soon as everyone was on board, we pushed back. I dont know what the actual ground time was, but it was shorter than any of the majors I have seen.

One type of equipment: This would make training and maintenance issues a lot cheaper compared to the cost that other carriers face for having many equipment types.
 
PVD757
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:48 am

Here are a few of my favorites though not in any order of importance.

1.) Employee relations: if you worked side-by-side with another airline on a ramp and you knew they got paid more than you, why are you not quitting from WN and going to work for them? WN cares a lot about their employees. I know competent people that work at other airlines that could not pass their evaluations based upon a type of person that WN wants to hire. They try to make the environment enjoyable for all, not just the high paying business passenger that represents huge accounts. The employee have good morale and in turn make the passenger feel like they actually mean something.

2.) Forecasting: When they forecast for the near future, I believe that some of the other airlines tend to be too optimistic in their numbers. I think WN looks at the worst case first and tries to adopt what's realistic from that approach.

3.) Simplicity: Simplicity is catagorized two different ways. They have a simplified fleet which leads to less training, crew scheduling complications, spare parts inventories, etc. The other aspect of simplicity deals with the product they offer the passenger. They have never claimed to give you full service regardless of the economy. What's the first thing that gets the axe when the economy slows down? Usually it's the food(if you can call it that) on board that gets eliminated. They just stick to what's important getting from point A to point B in a resonable amount of time with certain reliability.
 
wgw2707
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:48 am

Southwest is probably successful for two reasons. First, they have, through careful management, they have managed to secure for themselves the lowest costs in the industry. Secondly, in my opinion, in the late 1990s the major carriers really abused their passengers, as the artificial bubble economy provided unnatural swells of demand and it was not as neccessary to be as competitive. Thus, while the major airlines were mistreating passengers and loosing luggage with alarming regularity (and adding insult to injury, assuring that incidents of "Air Rage" made their way to the national media and using this in some instances to threaten complaining passengers with arrest, as occured with that famous 8 hour delay on Northwest during the blizzard) Southwest was continuing to provide consistantly good service.

Thus, when the inevitable occured, and the bubble broke the majors found themselves in the unenviable position of having a high cost structure and having alienated their passengers. Southwest continues to make a profit as they acquired an excellent reputation for friendly service, and they were fortunate enough to have a low cost structure. So this is where we are today.

My concern however is that while Southwest is undeniably an excellent airline now in terms of customer service, how do we know that as Southwest continues to succeed changes of management will not occur, changes that could result in Southwest taking on an attidue every bit as arrogant and pretentious as that of the major airlines in the late 1990s? How do we know that Southwest will not at some point in the future become a monstrous example of an airline that is very large, very profitable, but providing terrible service and seeking only to bankrupt other airlines? We've got to hope that Southwest remains as responsible in the future as it is now.

-WGW2707
 
VectorVictor
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:49 am

Hmmm, sounds like a topic tailor-made for user BoingGoingGone. This should be enjoyable.
 
JAL777
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:49 am

HAPPY & DEDICATED EMPLOYEES!!
 
rockyracoon
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:53 am

They have a damn good reputation for low fares, so people don't second guess their prices sometimes, eventhough they might not be the cheapest. Not always the case but I think they definetely can get away with higher prices in some markets than one would expect a LCC to do.

Tim
Airports I've flown from: CVG PIT MWO PHL PHX ORD DCA IAD MIA TPA MCO FLL ATL DTW DFW SJC LAX DEN SLC LAS HNL LIH OGG YVR GYE MUC ICN NRT PVG SHA SZX MNL PPS CRK BKK DMK KBV EOH MDE CLO CTG SMR BOG ACD MEX CUN MID AUA SAL RTB
 
SHUPirate1
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 8:59 am

RockyRacoon-Worth noting is that of the 68 FAA-designated large-medium hubs, the #1 airport in terms of yields is none other than Dallas-Love Field...
Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
 
JayDavis
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 9:15 am

My boss and I were talking about Southwest today at work. We both work for KE. He was saying it was his belief that Southwest is somewhat getting away from their "core values". Short hops. They are now flying some long haul routes from BWI to the West Coast, for example. So now they are competing with all the big boys. Yes, I know their fares are "fair" and they offer good service. What I don't understand is why go after the long-haul segment when they have made $$$$ hand over fist with the short haul approach that has been so successful for them?

There are still "plenty" of cities that would beg, plead, borrow or steal to get WN to serve their city. It just seems to me that WN has plenty of opportunities to "connect the dots" better on the short haul segments that haven't been connected yet, versus doing the long-hauls, that are non-stop flights.

What do ya'll think?


Jay
 
jeffinbwi
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 9:18 am

The answer to you question is expectations. Most Airlines are selling and advertising expectations that they routinely cannot meet. Southwest sells low expectations. They, for example, are continually telling their customers that they do not assign seats or serve meals. Then the customers expectations are exceeded when they get there favorite aisle seat, the flight attendants offer seconds and thirds on drinks and they are given more snacks then the last time they flew a "full service" airline. I can remember the last time I flew CO they served half a glass of soda and did not even offer a 5 cent bag of peanuts on a two and a half hour flight. I had an expectation that was not met and I was disappointed. The opposite is true of Southwest.
 
SHUPirate1
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 9:26 am

Actually though, Southwest's restricted fares are usually, in my experience, no cheaper than the major's fares, and usually much more expensive...a friend of mine was looking at a flight from ISP-HOU on Southwest (the same weekend I will be flying LGA-IAH on US/UA, both on business) this upcoming spring, and he would be paying more than $100 per ticket more than I will be...to say nothing of the fact that IAH is much closer to where we have to be (it's the same place) than HOU is...where WN is much better is with the walk-up fares, where a Southwest passenger can expect to pay less than half as much as a United passenger on a similar routing...worth noting is that other than ridiculous-yield DAL, WN also has siginificant operations out of several other high-yield cities, namely STL, HOU, BUR, and CLE, all in the top 15 among the medium/large hubs...while people can talk all they want about the majors' hubs having ridiculous yields, they conveniently forget that Southwest has 96% of the marketshare at the #1 yielding market in the US...WN is not the bargain everybody says they are...
Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
 
jeckPDX
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 9:48 am

Southwest is successful for five reasons. #1 Equipment commonality-having a single aircraft type making up an entire fleet lets the company improve profits. This is due to cross qualifying all pilots (even the 737NG's have a spec'd "toned down" cockpit to increase commonality with the other 732, 733, and 735's) having the same maintenance/parts also saving money. Which leads to #2, lower fares. Southwest is able to compete with the same or lower fares then every major or LCC albeit sometimes wioth a different route and many stops. They are also constantly having crazily low specials, and their great advertising only helps.#3 Point A to Point B sevice. By having a flight start in LAX go to PHX-ABQ-HOU-MEM. You can have traffic originating from LAX going all 5 destinations on the same flight constantly exchangiong passengers at each stop ensuring a full payload. #4 Great management. Herb Kelleher has been the chief of the airline since it started in the 70's. His unorthadox approach to business causes him to make great deals and decisions all the time. I've heard that hea got a better deal on the 737NG's because he won an arm wrestling match with the CEO of Boeing.#5 Friendly service. On each and every southwest flight you can tell the crew is having fun and enjoys their job and the company they work for. Each F/A has a great attitude and personality for the most part and on one flight when I was a 13 or so, the F/A let me talk on the intercom when we landed welcoming everyone to SFO. Its simple as this-------JECKpdx
"Beer is proof that God Loves us and wanted People to be Happy" - Ben Franklin
 
sprxflySWA
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 10:44 am

You instill the cheap fares and the service,then slowly over time, you can raise the fares and people will still always associate WN with low fares. This is just my opinion. I have told people over the last 5 years or so, that the "family" atmosphere is outdated now,due to size.At 2,000 employees,it's OK, but not at 40,000. Also,I said we are headed to what UA,AA,DL,etc. are (or were, at the time).
But ,I'll bet you can't get a lower unrestricted fare from many of our cities to other,further ones. Such as BOI-MCO for $299 o/w.I'll look up other airlines to compare.
 
AIR757200
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 10:49 am

Luv2fly,

I wasn't commenting on the service levels, I was just responding to your comment about WN getting you safely from point A to B. Any airline flying in the U.S. can safely get you from A to B, not just WN.
 
luv2fly
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 10:57 am

AIR757200 that is true, tho not meaning to split hairs, WN safety record I am sure is the envy of many of the majors....
You can cut the irony with a knife
 
capt078
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 10:59 am

a number of things:

-southwest employees earn less and work extremely hard. the trade off is a corporate culture that believes if the employees are happy, so will be the customers (read "nuts" and you will understand). no other airline listens and values the opinions of its employees more.
-the entire southwest "machine" is much simpler. southwest uses one type of plane, greatly reducing capital costs (parts, training, maintenance schedules...). furthermore, southwest's corporate structure is much simpler and less bureaucratic
-southwest cities are traditionally less congested and lower-fee. thus, southwest can pay less and turn their planes around much quicker.
-innovative thinking (boarding, in flight...)
-simplified fare structure. true, southwest's lowest fares tend to be no cheaper than the majors, and usually this involves flying out of an ancillary airport. BUT, southwest's highest fares (walk-up) are significantly less, topping out at $299 each way. only recently have other carriers (other lcc's) done this.
 
goingboeing
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 11:42 am

Actually though, Southwest's restricted fares are usually, in my experience, no cheaper than the major's fares, and usually much more expensive...a friend of mine was looking at a flight from ISP-HOU on Southwest (the same weekend I will be flying LGA-IAH on US/UA, both on business) this upcoming spring, and he would be paying more than $100 per ticket more than I will be...to say nothing of the fact that IAH is much closer to where we have to be (it's the same place) than HOU is...

But if your business plans change...who's got the lower fare then? Southwest has no $100 change fees...if your outbound changes, you pay the next available fare...the return is unchanged. If your return changes, you pay only the fare difference, no $100 change fees. That's one thing business travel departments appreciate.

where WN is much better is with the walk-up fares, where a Southwest passenger can expect to pay less than half as much as a United passenger on a similar routing...worth noting is that other than ridiculous-yield DAL, WN also has siginificant operations out of several other high-yield cities, namely STL, HOU, BUR, and CLE, all in the top 15 among the medium/large hubs...while people can talk all they want about the majors' hubs having ridiculous yields, they conveniently forget that Southwest has 96% of the marketshare at the #1 yielding market in the US...WN is not the bargain everybody says they are...


Odd...they've been a bargain time and again for me and the companies I work for.

If you want to know their secret, it's called "niche". They serve people who want frequency of flights and decent fares. The other airlines want to come accross as the "low fare leader" as evidenced by the post I quoted, but they want to also come accross as the first choice in first class service. But...most of those airlines GIVE away the first class cabin to "elite" passengers who bought a ticket geared for the "low fare" passenger. Also...I think that they are successful because they don't try this bullshit "class" difference. Everybody is treated the same, whether it's there first flight or their thousandth flight. Their frequent fliers know that they will get something rarely offered on the other airlines - consistancy.
 
SWAFA30
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RE: How Is Southwest So Succesfull?

Tue Nov 18, 2003 3:03 pm

HAPPY & DEDICATED EMPLOYEES!!

Well....sorta. From my experience it is really more of a myth than reality that we are all gleefully happy to work here. We do have peace of mind knowing that our company is relatively stable. We also understand that mistreated customers can quickly become someone else's customers. By and large, we refrain from taking our grievances with SWA out on our customers. That is likely why there is such a strong public perception that SWA has such a "happy" workforce.



[Edited 2003-11-18 07:10:42]
 
ual777contrail
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RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 2:06 am

They only promise to get you from A to B safely. There is a lot of room for improvements there, and low fares.

There customer service in my opinion is all the same to the majors, you get your mean people and your over happy people. You get the mustard rocket and a seat.


SWAFA30,
Keep thinking that, believe me, not ALL the employees are happy. And job security is important but most others airlines have the same feelings.

UAL 777 CONTRAIL
 
goingboeing
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RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 2:18 am

UAL777 - care to name any company where ALL the employees are happy? Just one will do.

You miss the point of SWAFA30 - right now, SWA FA's are in contract negotiations. They've been in negotiations for quite some time. But you haven't seen them threaten CHAOS(tm) to screw up their customers (SWA clientle are usually referred to as customers, not passengers) plans.
 
mandala499
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RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 3:24 am

WN ?

This is what I see from WN...

1. Focus on People!
Yes, their staff and their customers and their suppliers.
Many airlines management decided that unions are evil (well, the Lorenzo legacy still lingers amongst some airlines). I strongly believe in that a generally happy and satisfied workforce will lead to less pay conflicts...

Their customers/passengers...
The product maybe cheap, simple... but remember, transportation is an intermediate commodity. Customers can easily vote with their feet. Make the customers happy through cheap fares, simple fares and humane treatment... Where else can you hear passengers happy getting peanuts while all we hear are crews saying... "you're lucky you got peanuts and now you want a meal ? Pay First Class damn it!" (true or not, that's the stereotype things we hear about the US Airline industry around the world).

2. Simplification and standardization.
Products and fare structures are simple. People need to go from A to B, you want to give them a simple fare, or a complicated one?

Standard equipment... 737 737 737 737 737 737! They could have chosen any planes, but they stick to one type. Massive cost savings through this in terms of reduced downtime, spare availability and distribution.

Simplified equipment... Their 737s are dumbed down. I am not sure if it's true but I've heard they don't use VNAV, and possibly even autothrottle. This may result in less fuel efficiency and increased wear and tear, but it also reduces down time due to minor problems and stick those wear and tear issues for the overhauls... This leads to...

3. High Utility.
Flying planes make money... Points 1 and 2 above keeps the planes flying and occupied seats. Higher utility means more "perishable inventory" in terms of seats... Points 1 and 2 above makes people fly!

Utility is not only for their airplanes, but also for their people. If WN can't make x number of flights to and from the city, it won't serve the city! Why ? Fly to a city and you need to set up your local staffing there... here WN increases utility of their human and geographical resources by only flying to cities where they can have a specific minimum number of flights, reducing the "station costs" component of our fare.

4. Focus on profitability.
Majors have spent billions to keep their market share. The majors have ended up going into the literally "zero sum" oligopolistic war... WN kept away from it, and has created new markets instead.

WN keeps it simple. Will flying from A to B make money? Where do people from city C want to fly? This suits their point-to-point and simple hub system instead of mega-hubbing, which prevents them from going to war with the majors on an oligopolistic scale.

'they conveniently forget that Southwest has 96% of the marketshare at the #1 yielding market in the US...WN is not the bargain everybody says they are..."

Well, their revenue yield per kilometer is amongst if not the lowest in the US (if not the world), yet they're still the highest valued airline in the US in terms of market capitalization (1/3 of the US airline industry!).

Yes, in 2001, the highest valued airline in the US was southwest! (can't remember if it's 1/3 or 1/4 of the US airline market value)... now that's some achievement for an airline who sells cheap fares, flies "little" planes, and have a seemingly complicated route structure to us the general public who are more used to hubs and megahubs.

Mandala499
When losing situational awareness, pray Cumulus Granitus isn't nearby !
 
barney captain
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RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 3:45 am

Jay wrote;

"What I don't understand is why go after the long-haul segment when they have made $$$$ hand over fist with the short haul approach that has been so successful for them?"

2 reasons;

1. Now we have the aircraft that can do it (737NG) and,

2. When we extend our stage length, our seat mile costs drop from just over 7 cents/mile to nearly 4.
Southeast Of Disorder
 
goingboeing
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RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 3:55 am

What I don't understand is why go after the long-haul segment when they have made $$$$ hand over fist with the short haul approach that has been so successful for them?

In addition to what Barney Captain said, the reason they went after the long haul segment was due in part as a response to the "long haul" operators pushing for a "segment tax" that would penalize the short haul carriers. So...SWA just figured, might as well join 'em on those long hauls.
 
AirDude66
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RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 4:01 am

It is the simple things that confound the wise.

WN is built around people. YOu can not focus on the "customer" and turn your back on "agent". I have seen HR departments that come up with oustanding plans and policies for agents and employees ON PAPER but they along with the degrees they bring have absolutely no clue what impacts the internal people.

Southwest people for the most part are happy, they feel taken care of, they have fun on the job, and the are paid lower. Get that?

If I am happy - I will strive to make your customer happy, if fact they become more like my friends. I would work to build relationships whether it was for 20-30 minutes or a FF that comes back again and again.

If I feel taken care of - I wil endeavor to take care of your customer, in fact, I might even treat them as family and be concerned about their needs.

If I have fun on the job - I will make sure everyone around me has a great time. An experience to remember.

I am satisfied, content , my bills are paid - why push for more.

I will project upon my customers everything that my employer projects upon me.

I used to work for ValuJet - extremely low wages but man did I have a great time. I felt good everyday. Even on the bad days were better than some of the good days I have now. In fact, I would seriously have to consider taking a cut in pay if I could work for a company like that again. Even the President, Lewis Jordan took time out to talk to you and many he knew by name.

This is not the sole success of WN but what a foundation. If you have a great foundation many things can pound against you but you will still stand strong.
 
ScottB
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RE: How Is Southwest So Successful?

Wed Nov 19, 2003 6:29 am

SHUPirate-

You neglect one thing about DAL when trumpeting its high yields -- it also has by far the shortest average passenger trip at just under 350 miles (due in large part to the limitations of the Wright Amendment). Short-haul traffic generally does have higher yields -- but it's also more expensive to provide. A fare which seems like an excellent bargain -- $60 between LGA and BOS, for example -- gives a yield of over 25 cents per mile. Similarly, BUR has one of the shortest average passenger trips at 570 miles -- which means it has relatively high yields as well. Looking at average yields at an airport doesn't make much sense unless you weight by average trip distance; it is more meaningful to compare average yields on trips of comparable distance.

Probably the #1 reason for WN's success is their people. Happy staff treat your customers well, which means profits for your shareholders. It is no coincidence that Continental is both one of the most profitable network carriers *and* rated one of the best places to work each and every year. Southwest was at or near the top of the same list until they decided to stop participating in the rankings. When you treat your people like valued members of and contributors to your team (or even like family!) they will work together with you to be successful. When you treat your employees like the hired help, commodities, expendable items, or even the enemy, they will act that way (and you will be left wondering why you can't be as productive as Southwest). Until certain of the majors get beyond adversarial relationships with their labor groups, they will indeed be destined to fail.
 
JayDavis
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RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 8:07 am

Thanks for the reasoning about the long-hauls. I had forgotten about that tax and now somewhat remember the reasoning for the long-haul change in strategy somewhat. I appreciate Barney Captin and GoingBoeing for chiming in on that.

Above that, someone wrote that Herb has lead the airline since the 70's. Actually, that isn't a true statement. Herb has "been" with the airline since its inception, but the first leader was Lamar Muse. Old history. Had a boardroom struggle with one of the founders, Rollin King and lost. Muse and his son were shown the door.

As to Herb getting a lower price on the 737's due to an arm-wrestling match, you have your stories mixed up. At one time, Southwest and an FBO had a slogan that said "The Company Plane" or something like that. Herb and the President of that FBO had a wrestling match at the former Sportatorium located in Dallas. They used to have a lot of "wresslin" matches at this place, it is since torn down. Anyway, Herb and this guy arm-wrestled for the "right" to use this slogan. Both companies got a HUGE amount of free publicity on it. Leave it to Herb to get free publicity  Smile !!

Now as for arm-wrestling with Boeing, I bet Herb in fact, "did" arm-wrestle with Boeing executives for a good price of the 737's they get, seeing how they are the largest operator of them in the world. Herb just didn't exactly "really" arm-wrestle someone from Boeing.

Great airline, no complaints from me. You get what you pay for and Southwest tells you from the get-go, this ain't no deluxe airline. If you expect that, you are going to be "sadly" mistaken. I fly them all the time!!




 
[email protected]
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RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 8:10 am

Does anyone know WN's profit last year and thus far this year?
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
barney captain
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Joined: Tue Nov 06, 2001 5:47 pm

RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 11:43 am

Southwest Airlines Reports Third Quarter Earnings of $106 Million
October 20, 2003 06:56:00 AM ET


DALLAS, Oct. 20 /PRNewswire-FirstCall/ -- Southwest Airlines' LUV net income for third quarter 2003 was $106 million, compared to third quarter 2002 net income of $75 million. Net income per diluted share was $.13 for third quarter 2003, compared to $.09 for third quarter 2002. These results are in line with First Call's consensus estimate. The Company's third quarter 2002 net income, excluding a special income item, was $50 million, or $.06 per diluted share.

Operating Results

Total operating revenues for third quarter 2003 increased 11.6 percent to $1.55 billion, compared to $1.39 billion for third quarter 2002. Operating income was $185 million, compared to $91 million in third quarter 2002, an increase of 103.3 percent. Revenue passenger miles (RPMs) increased 7.7 percent in third quarter 2003, compared to a 3.4 percent increase in available seat miles (ASMs), resulting in a load factor of 70.5 percent versus the third quarter 2002 load factor of 67.7 percent. The passenger revenue yield per RPM increased 3.8 percent to 11.71 cents from 11.28 cents in third quarter 2002. Operating revenue per ASM (RASM) increased 8.0 percent to 8.53 cents from 7.90 cents in third quarter 2002.

Total third quarter 2003 operating expenses were $1.37 billion, an increase of 5.2 percent, compared to $1.30 billion in third quarter 2002. Operating expenses per ASM (CASM) for third quarter 2003 increased 1.8 percent to 7.51 cents from the year ago period, primarily due to higher labor and jet fuel costs, net of hedging gains. Excluding fuel and the effect of a 2002 special item, CASM for third quarter 2003 increased 2.4 percent to 6.34 cents versus 6.19 cents in third quarter 2002.

"Other expenses" were $14 million for third quarter 2003 versus "other income" of $33 million for third quarter 2002. "Other losses" increased to $7 million in third quarter 2003 from "other gains" of $46 million in third quarter 2002 primarily due to the 2002 special income item. Interest expense declined 22.2 percent and interest income declined 40.0 percent primarily due to lower interest rates. Capitalized interest increased to $8 million from $4 million in third quarter 2002 as a result of higher Boeing aircraft progress payments.

James F. Parker, Vice Chairman and Chief Executive Officer, stated: "We are proud to report our third quarter 2003 net income of $106 million, which represents our 50th consecutive quarter of profitability. Our third quarter 2003 earnings were up substantially from the same period last year due to an improved post-war revenue environment and a weak year-ago performance. Third quarter 2003 RASM increased eight percent to 8.53 cents through a combination of higher load factors and passenger yields. Summer demand for vacation travel was strong, resulting in a record July and very solid August load factor performance. Thankfully, post-Labor Day travel also held up reasonably well, although our September traffic was impacted by Hurricane Isabel. We continue to be encouraged by recent RASM and booking trends and expect year- over-year unit revenue growth again in fourth quarter 2003. On a customary seasonal basis, however, we expect fourth quarter 2003 RASM to decline from third quarter 2003.

"Excluding the effect of a 2002 special item, our overall unit costs were up 2.3 percent in third quarter 2003. Our average jet fuel cost per gallon increased only 3.7 percent to 72.8 cents in third quarter 2003, as we benefited from third quarter hedging gains of $30 million. Based on prevailing market prices, we currently expect our fourth quarter 2003 average jet fuel cost per gallon to exceed the third quarter 2003 average jet fuel cost per gallon of 72.8 cents. We are 87 percent hedged in fourth quarter 2003 under $24 per barrel and 83 percent hedged for 2004, with caps approximating $23 per barrel.

"Excluding fuel and the effect of the 2002 special item, third quarter 2003 unit costs increased 2.4 percent to 6.34 cents from third quarter 2002. Based on current cost trends, we expect more year-over-year unit cost pressure in fourth quarter 2003 and higher unit cost levels than in third quarter 2003. We continue to realize productivity improvements from Company-wide cost reduction efforts, which we will aggressively pursue to protect our low cost competitive advantage.

"As a result of our Employees' commitment to low costs, low fares, and high quality Customer service, the future for Southwest Airlines is bright. Because of our confidence in the People of Southwest and the gradual improvement in the revenue environment, we recently exercised one Boeing 737- 700 option for 2005 delivery and four 2006 options for accelerated delivery to 2004. We also entered into an agreement to lease an additional new -700 in 2004. These changes bring our 2004 aircraft deliveries to 47 and our 2005 firm orders and options to 23 and 11, respectively. After considering these additions and our planned 737-200 retirements, we expect an annual capacity increase of approximately seven percent in 2004 and over ten percent in 2005.

"In addition to our cash on hand at September 30, 2003, we continue to have our fully available unsecured revolving credit line of $575 million. During October 2003, we redeemed $100 million of senior unsecured 8 3/4 percent Notes due October 15, 2003 at par plus accrued interest."

Operating revenues for the nine months ended September 30, 2003 increased 7.3 percent to $4.42 billion while operating expenses increased 6.8 percent to $4.05 billion, resulting in operating income in 2003 of $372 million.

Net income for the nine-month period was $376 million in 2003 versus $199 million in 2002. Net income per diluted share for the nine-month period was $.46 in 2003 versus $.25 in 2002. Excluding special items in each year, net income for the nine months ended September 30, 2003 increased 49.4 percent to $233 million from $156 million in 2002.

Special Items

The Company believes it is helpful to management and investors to evaluate ongoing operational performance and trends by excluding special items, as described below, for comparative purposes. A reconciliation of key financial measures, excluding these special items, is included in this release, pursuant to Regulation G issued by the Securities and Exchange Commission. There were no special items in third quarter 2003.

Pursuant to the April 2003 Emergency Wartime Supplemental Appropriations Act, the Company received a $271 million cash payment from the U.S. government, which is included as "Other gains" in its Condensed Consolidated Statement of Income for the nine months ended September 30, 2003. This special item, which was recorded in second quarter 2003, resulted in an increase of approximately $41 million to Employee profitsharing expense.

Pursuant to the Air Transportation Safety and System Stabilization Act, which was enacted following the September 2001 terrorist attacks, the Company recognized $48 million included in "Other gains" in its Condensed Consolidated Statement of Income for third quarter 2002.

The Company's 2002 nine month results also included an additional $36 million in passenger revenue recognized during second quarter 2002 from a reduction in the estimated future refunds and exchanges included in "Air traffic liability."

Southwest Airlines will conduct a conference call to discuss its quarterly earnings today at 10:30 a.m. Eastern Time. A live broadcast of the conference call will be available at www.southwest.com .

This news release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the plans, intentions, and expectations reflected in or suggested by the forward-looking statements. Additional information concerning the factors which could cause actual results to differ materially from the forward-looking statements is contained in the Company's periodic filings with the Securities and Exchange Commission, including without limitation, the Company's Annual Report on Form 10-K for the year ended 2002. The Company undertakes no obligation to publicly update or revise any forward- looking statements to reflect events or circumstances that may arise after the date of this press release.

SOUTHWEST AIRLINES CO.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(in millions except per share amounts)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
Percent Percent
2003 2002 Change 2003 2002 Change

OPERATING REVENUES:
Passenger $1,503 $1,344 11.8 $4,275 $3,984 7.3
Freight 23 20 15.0 70 63 11.1
Other 27 27 --- 75 74 1.4
Total operating revenues 1,553 1,391 11.6 4,420 4,121 7.3
OPERATING EXPENSES:
Salaries, wages, and
benefits 554 510 8.6 1,657 1,473 12.5
Fuel and oil 214 203 5.4 616 562 9.6
Maintenance materials and
repairs 111 99 12.1 321 296 8.4
Agency commissions 11 12 (8.3) 36 42 (14.3)
Aircraft rentals 46 46 --- 137 140 (2.1)
Landing fees and other rentals 95 87 9.2 276 258 7.0
Depreciation and amortization 97 92 5.4 285 263 8.4
Other operating expenses 240 251 (4.4) 720 757 (4.9)
Total operating expenses 1,368 1,300 5.2 4,048 3,791 6.8

OPERATING INCOME 185 91 103.3 372 330 12.7
OTHER EXPENSES (INCOME):
Interest expense 21 27 (22.2) 71 80 (11.3)
Capitalized interest (8) (4) 100.0 (23) (13) 76.9
Interest income (6) (10) (40.0) (18) (29) (37.9)
Other (gains) losses, net 7 (46) n.a. (265) (37) n.a.
Total other expenses
(income) 14 (33) n.a. (235) 1 n.a.
INCOME BEFORE INCOME TAXES 171 124 37.9 607 329 84.5
PROVISION FOR INCOME TAXES 65 49 32.7 231 130 77.7


NET INCOME $106 $75 41.3 $376 $199 88.9
NET INCOME PER SHARE:
Basic $.14 $.10 $.48 $.26
Diluted $.13 $.09 $.46 $.25
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 784 773 781 772
Diluted 827 805 818 808
SOUTHWEST AIRLINES CO.
RECONCILIATION OF REPORTED AMOUNTS TO NON-GAAP ITEMS (SEE NOTE)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
(In millions, except Percent Percent
per share amounts) 2003 2002 Change 2003 2002 Change
Operating revenue,
as reported $1,553 $1,391 $4,420 $4,121
Passenger revenue
adjustment --- --- --- (36)
Operating revenue,
excluding special item $1,553 $1,391 11.6 $4,420 $4,085 8.2
Operating expenses,
as reported $1,368 $1,300 $4,048 $3,791
Profitsharing impact of
Stabilization Act grant --- (7) --- (7)
Profitsharing impact of
Wartime Act grant --- --- (41) ---
Profitsharing impact of
passenger revenue adjustment --- --- --- (6)
Operating expenses,
excluding special items $1,368 $1,293 5.8 $4,007 $3,778 6.1
Operating income,
as reported $185 $91 $372 $330
Profitsharing impact of
Stabilization Act grant --- 7 --- 7
Profitsharing impact of
Wartime Act grant --- --- 41 ---
Passenger revenue adjustment,
net of profitsharing --- --- --- (30)
Operating income, excluding
special items $185 $98 88.8 $413 $307 34.5
Net income, as reported $106 $75 $376 $199
Stabilization Act grant,
net of income taxes
and profitsharing --- (25) --- (25)
Wartime Act grant,
net of income taxes
and profitsharing --- --- (143) ---
Passenger revenue adjustment,
net of income taxes
and profitsharing --- --- --- (18)
Net income, excluding
special items $106 $50 112.0 $233 $156 49.4
Net income per share,
diluted, as reported $.13 $.09 $.46 $.25
Stabilization Act grant,
net of income taxes
and profitsharing --- (.03) --- (.04)
Wartime Act grant, net
of income taxes
and profitsharing --- --- (.18) ---
Passenger revenue adjustment,
net of income taxes
and profitsharing --- --- --- (.02)
Net income per share,
diluted, excluding
special items $.13 $.06 116.7 $.28 $.19 47.4
Southeast Of Disorder
 
ual777contrail
Posts: 2914
Joined: Sun Feb 17, 2002 11:33 am

RE: How Is Southwest So Successful?

Wed Nov 19, 2003 12:03 pm

GOINGBOEING,
Never said there was company that has 100% happy people,I just get tired of people having the misconception that WN treats all the job groups great.

A perfect point is the flight attendants, you cant compare CHAOS to WN, two very different airlines. You know that and I do as well, I know your on the whole WN bandwagon, I know a couple people for WN and it isn't all jolly we love our CEO crap made out on this forum.

They are a very successful airline, hands down. They will be here for a very long time, but not everyone will share the same joy and enthusiasm as you do, some people on this forum say they will never fly them for one reason or another, we are all entitled to our opinion, you get a seat and a bag of pretzels served to you by a girl who looks like it was casual day at any other carrier. Hey now were on to something, there dressed down attire is what is also saving them a buck.


UAL 777 CONTRAIL



 
txagkuwait
Posts: 1388
Joined: Fri Aug 27, 1999 7:39 am

RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 12:22 pm

Is it just me or does UAL777Contrail's constant diatribes against WN lead one to believe he is biased against them for some reason?

Back to the topic...the bottom line.....

when WN began it's expansion from the original 3 cities to what it is today, Lamar Muse put into place a formula or system that, if adhered to, is practically idiot proof. Southwest's success over the long term has validated his philosophy.

His first parable dealt with a man who owned a lucrative hamburger stand.....his kids all wanted him to close it down and open up a fancy restaurant. He refused, stating "Feed the rich and grow poor. Feed the poor and grow rich." That's what WN has done over time. Peope can bark all they want that WN's fares aren't the lowest.....but there would not be low fares at all had it not been for WN.

The second key ingredient was simplicity. He referred to opening up new stations as "cookie cutter." Figure out what works, and replicate it. That's why when WN opens up a new station, you see them doing pretty much the same thing...10-14 flights a day, including a couple with reasonably dense (4x per day or better) frequency.

A lot of the lessons Southwest learned, early on, were the result of trial and error due to desperation. Hemorrhaging money, the decision was made to bring the planes back on Friday night and discontinue weekend service. To get the plane back with any revenue at all, folks decided they would sell seats for 10 bucks a throw....any revenue was preferable to ferrying the plane back from Houston empty. When, by the 4th week, and with no advertising to speak of......the $10 flights started going out full.....folks at Southwest started to recognize that maybe there were two separate markets out there and one standard fare would not fit all.

Southwest is, to the airline industry, sort of like what Humble Oil used to be in the petroleum industry. The best, most innovative and congenial place to work. Nothing succeeds like success. Southwest will continue to succeed so long as they don't start reading their press clippings and until they decide that they no longer need to worry.
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 12:27 pm

I think WN scares a lot of folks who work for the majors, there formula is so, and I mean so simple that people are always trying to figure out why it works as well as it does. And instead of duplicating it they try to tweak it and make it better, just keep it simple.
You can cut the irony with a knife
 
User avatar
Coronado990
Posts: 1510
Joined: Fri Oct 24, 2003 2:12 am

RE: How Is Southwest So Successful?

Wed Nov 19, 2003 2:02 pm

I know having the same aircraft in your fleet is a money saver, but WN has been very, very lucky that their sole aircraft type has never been grounded for any reason such as the Electra II or DC-10. The 737 is a proven and reliable aircraft but didn't Southwest face grounding consequences when rudder problems on the 737 were suspect in two accidents (UA at COS & US at PIT)? That would have made me very nervous. I wonder how WN would have reacted in such a case?

I think airlines in the past kept a mixed feet for not only route diversification, but also to make sure their whole airline was not effected if a certain airplane type was subject to grounding. Today, groundings are not as common as in the 50s and 60s, thank god, but I bet that this mentality still exists at the majors today. And maybe for good reason. It could still happen.

As a post script, I would like to give credit to my hometown airline PSA, the first real LCC, which started operations in 1949 from SAN-BUR-OAK and flew for 40 years before USAir bought them out in 1988. Talk about a friendly, family oriented airline. They use to have "around the county/bay" flights for $5.00 that went to charity in a 727-200. God love them!
SFO=NoCal LAX=SoCal SAN=LoCal
 
flyboyaz
Posts: 2077
Joined: Sat Sep 13, 2003 11:32 am

RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 2:59 pm

Thank you for mentioning PSA Coronado990...they were the best by far  Smile

I would say WN is successful probably for the same reasons Wal Mart is successful. Cheap, cheap, cheap. To their credit, they are cheap and offer a good product...more than I can say for Wal Mart!!

WN does have good customer service, but I wouldn't say they are as happy and wonderful as they seem. I've been treated poorly on a couple of occassions. One CSR was just beyond rude to me and one of my agents, I lost alot of respect for them (at least in my station) after that episode....being the best in everything (including making money) has gone to some people's heads! I've also heard many agents gripe about their pay.....topping out at $25 an hour apparantly isn't good enough for some people. Us HP employees would take that and run!

Overall though, they have everything pretty well under control. I still believe however, in order for them to continue to be successful...they need to change. You can't fly everywhere with a 737!

[Edited 2003-11-19 07:00:20]

[Edited 2003-11-19 07:01:05]
Catch a ride on a smile!
 
QF743INTL
Posts: 171
Joined: Thu Jul 12, 2001 10:24 am

RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 3:29 pm

20 MINUTE TURN AROUND'S MY FREIND!
 
bahadir
Posts: 1347
Joined: Wed Oct 03, 2001 4:57 pm

RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 8:23 pm

Southwest is Greyhound with wings. Period.. You are treated like sheep..
I need to have my assigned seat. I cannot, won't and don't want to have an elbow fight with other people getting on the plane. I also don't want to show up for the flight 4 hours in advance so that I can have a half decent seat.

Sweatwest won't take my business when I have a 8 hr day and I will get the middle seat for 10 hr flight with 4 stops on the way home..

Earthbound misfit I
 
[email protected]
Posts: 16616
Joined: Sat Jan 13, 2001 6:29 pm

RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 8:28 pm

I cannot, won't and don't want to have an elbow fight with other people getting on the plane."

My experiences, albeit them on FR, are contrary to this, for Brits, Americans, etc., have a culture of not pushing. However, if such a policy existed in India, Greece.......

Does WN board everyone at the same time, or according to row number?

[Edited 2003-11-19 12:31:37]
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
goingboeing
Posts: 4727
Joined: Sat Dec 04, 1999 1:58 am

RE: How Is Southwest So Succesfull?

Wed Nov 19, 2003 8:56 pm

[email protected], they board by group number - about 30 - 40 people to a group.

Bahadir is yet another person who hasn't flown them, but is convinced that it's pure hell. You can tell by a couple of things - the "4 hour early" - classic line from one who hasn't flown them. I get to the airport one hour in advance and the only time I've had a middle seat was when I chose it to sit next to my daughter. AS a matter of fact the LAST person to board took the aisle seat next to me (flight was full, BTW). So much for the "C group sucks" thoughts. Second is the "10 hour and 4 stops" comment. Quite simply, they don't have any more than stops, and you've got to hunt to find those. And all the times I've flown them, I've yet to be elbowed.

Those are all thoughts of one who's never flown them. I know because many years ago, I was one of those people. ONce I tried it, I found that I got a seat that was more comfortable than the other airlines, I found that I left from an airport where I was airborne in 10 minutes instead of queued up as number 20 for takeof, and I found a cabin crew that was efficient, friendly, and dare I say fun.
 
bahadir
Posts: 1347
Joined: Wed Oct 03, 2001 4:57 pm

RE: How Is Southwest So Succesfull?

Thu Nov 20, 2003 10:28 am

Goingboeing,
I flew them hence my experience..

I had BDL-BWI-BDL with them last year. It was a zoo at the airport to say the least. I had BDL-BWI on Saturday morning. When we arrived at BWI, the flight attendant sang "I love you , you love us, we are better than a bus" song at 7:00 am in the morning. I don't know about your kids but I hate Barney and I hate even more stupid jokes/songs like this.. and I am a guy with a sense of humor..

On the way back , the gate area was another zoo.. There were flights leaving and coming and delays.. As I got to the airport 2 hrs before the flight I was expecting to get a nice number. I was in the 3rd group of people. I ended up on the seat that looked to the back of the aircraft.. Hell of a ride.. NOT..

I attempted to fly them SEA-GEG-SEA but Alaska/Horizon was much civilized alternative..

Oh last but not least, my wife works at the B terminal in SEA. You should hear the stories that she tells about WN pack..
Earthbound misfit I
 
AA777MIA
Posts: 671
Joined: Thu Aug 07, 2003 10:30 am

RE: How Is Southwest So Succesfull?

Thu Nov 20, 2003 10:39 am

I do not have anything against SWA. I flew them in 01 from FLL to MCO. Actually I have to say the res agent was INCREDIBLE. We struck up a brief conversation while whe was booking my reservation. I told her I had to be back by a certain time for my trip, which of course she asked if I flew for SWA. I told her I flew for AA, in which she offered her support for what had happened on 9/11. Her words " Yall have had it rough over there, just know the rest of us are here for ya!" Very nice! The flight was packed, the staff awesome, but bottom line, its a flying bus. It was a free for all. Bags jammed everywhere, the passengers were "interesting". I guess if I was not in the industry and looking for a cheap fare, then yeah, I would look there, but to go coast to coast, hmm I don't think so..
 
atrude777
Posts: 4420
Joined: Wed Aug 13, 2003 11:23 pm

RE: How Is Southwest So Succesfull?

Thu Nov 20, 2003 12:21 pm

I admit, I was one of those who HATED Southwest Airlines. Being from the STL area, I ALWAYS flew TWA. When I got a trip to PHX, I let my Dad book the flight for me. BIG MISTAKE-(or so I thought..) HE BOOKED ME ON SWA, I thought he was gonna book me on TWA, one of the greatest airlines in the world!! But NOOOO it had to be Southwest. Well as it got closer to the flying date, I was getting more curious about this airline, and as I heard about NO FOOD, NO SERVICE(reffering to IFE) and on and on I m thinking WHY THIS?!?! My dad said it was the cheapest(212 DOLLARS, on WN 350 on TWA.) Well the flying date came and I got inside the E terminal at STL. This alone was AWESOME!!! I loved the new terminla way better then the TWA gates. Then my mom checked me in for my flight and lets say I HAD THE BEST FLIGHT EVER!!! It was my first time flying by myself and Im sooo glad it was with Southwest. So from now on...I ALWAYS book myself on WN when I can. I know we will get on time arrivals and departures, low fares, AND great service!! Plus the Blue Canyon is JUST A BEAUTY!! so...SOUTHWEST AIRLINES PEOPLE!

Alex.
Good things come to those who wait, better things come to those who go AFTER it!
 
ScottB
Posts: 7071
Joined: Fri Jul 28, 2000 1:25 am

RE: How Is Southwest So Succesfull?

Thu Nov 20, 2003 2:54 pm

I think you run into situations on just about every airline where you are faced with "interesting" people or bad experiences -- I've been on Delta flights on Friday with passengers connecting to Vegas who thought the party had started well before the flight left the gate. The same was true on CO flights to beach destinations in Mexico. MIA has been a complete and utter zoo every time I've traveled through there on AA, and US Airways in Boston handled irregular operations on their Shuttle very, very poorly the one time I was unfortunate enough to fly the US Shuttle. United had the Summer from Hell, and Northwest had its very well-publicized incidents during snowstorms at DTW. I've been stuck in an ASSIGNED middle seat on an AA 757 next to a woman holding a crying baby, and I thought I'd lose my kneecaps when the person in front of me reclined. I flew in an ASSIGNED seat next to the engine on a US F100 -- but the noise had to compete for annoyance value with a gaggle of about 15 loud high school girls.

No airline is perfect (no, not even the network majors or Frontier or AirTran or jetBlue or Southwest or whoever). Southwest's humor and lack of assigned seating and casually attired employees and [fill-in-your-pet-peeve-here] don't work for everyone, and that's why it's great for the Southwest bashers that the network majors are forced to lower their prices on competitive routes.

I love the "Greyhound-with-wings" comments because in some ways, WN really is exactly that. They deliver reasonably-priced short and long haul transportation to the public -- and neither makes any sort of pretense of offering an "experience" above getting you where you want to go. Actually, one could argue that much of the financial difficulty facing Greyhound and other providers of intercity bus transit is due to Southwest and similar airlines. During regulation, most people couldn't afford to travel by air -- so they had to either drive or take the bus. With affordable air travel far more widely available, most people *can* afford to fly instead of taking the bus.

But if you want to dismiss WN as being the bus with wings, do it at your own peril, especially if you're an airline manager. 90% of passengers don't sit in First Class and don't care about the "amenities" unless they've been conditioned to expect them.
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: How Is Southwest So Succesfull?

Fri Nov 21, 2003 1:01 am

ScottB

I think you said it BEST!

Maybe if the so called majors listened to. or thought to ask there coach passengers what is important to them, they might now be in a better position.

But if you want to dismiss WN as being the bus with wings, do it at your own peril, especially if you're an airline manager. 90% of passengers don't sit in First Class and don't care about the "amenities" unless they've been conditioned to expect them.

You can cut the irony with a knife

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