Southwest becomes number 1 in US

[elektra]

There has been much discussion here about the role and future of low-cost carriers. Saw this article today in the Air Transport World e-mail summary.

Southwest now No. 1 in US domestic enplanements
Dateline: Wednesday August 13, 2003

Southwest Airlines became the largest US domestic carrier in terms of passenger enplanements in May, surpassing Delta Air Lines, based on data supplied to the US Dept. of Transportation by the airlines themselves.

You can see more on: http://www.atwonline.com

If you talk to people who were round when this outfit started its clear that all the same arguments we have now came up. But there are hangar sweepers who are rich now because they stuck with Southwest and took up all the stock options.

There's just no doubt about it...on routes under 3 hours (give or take) a focussed low-fare service, one type, no frills well managed etc....WORKS!

[hoss]

Good on them:ok: . They had their first 'strike'/industrial action this week after over thirty years in operation. The FA's were concerned that the turn-around times are increasing to 25 minutes from the previous 10 minutes:cool: . They only get paid for time in the air, so I guess an eight sector day could see them loose up to two hours pay:sad: .

[robroy]

I can remember riding the jump seat on AA from DFW to Austin in the late 70's, on the way to a CAF, Airsho, at Harlingen. I made the comment, Which airline owns the 737 we are following. The reply was, It's a backyard Texas operator, known as Southwest. Oh how the wheel has turned. :ok:

[Buster Hyman]

I guess it works for the same reason we see so many Kia's, Hyundais & Daewoos on the roads now.

"I don't carewhat it's like, as long as it's cheap!"

All hail the almighty dollar!:(

[trashie]

Had the pleasure of listening to Herb Kelleher SW founder at the IATA Annual Conference in Washington recently. The most entertaining and irreverent speaker.

SW have been successful for a number of reasons
1. Looking after their staff and great working environment
2. One type of aircraft B737
3. Selected popular routes and not tied to hub and spoke that can mean multiple aircraft changes (this is also why corporate aviation is so strong in the US as business people want to go from A to B direct not by C D and E.
4. Use of secondary airports near the major cities.

Interestingly, The CEO of Delta followed Herb and I must say was also impressive but admitted the hub and Spoke had its down side.

[wessex19]

Question:so what can Australian Aviation learn from this???

[Sperm Bank]

Good question wessex , with one very simple answer. LOOK AFTER YOUR STAFF AND THEY WILL LOOK AFTER YOU AND YOUR PROFITS!!!!!!!!!!!!!!!!!

It works for Southwest as well as Ryanair in Europe. It 's just a shame all the intellect free zones (read accountants) can not identify this. They still believe that to achieve a healthy bottom line you have to screw the staff to keep costs down. Talk about neanderthal thinking!

[stillalbatross]

SB, I think you will find that at Southwest as a pilot you pay for your type rating and while job security might be better than at the other US majors pay and conditions are not up there. They make money by not paying much.

[ur2]

Sounds like the staff are being looked after just like us at VB :ouch:

[westelevengenius]

Southwests philosophy is simple:

1) Look after the staff - they are No.1

2) If the staff are happy, they will look after the passengers.

3) When the pax are happy they will keep coming back...therefore, the shareholders WIN!!!!!


In the words of the gods at QF...

"Our no.1 priority are the shareholders"


Aaahh-Uh.......:\

[permFO]

Treating your staff well is one component ,as someone said SQ don't treat their staff the same way Southwest do and they continue to make money.
It seems to be straightforward enough: 1 type, simple labour contracts and fly the people where they want to go ,not where the airline wants them to go.

[Wizofoz]

Still Ab,

Yes you need to get a type rating to work for Southwest, but they are, in fact, amongst the best paid 737 pilots in the world.

Everywhere but Australia and New Zealand it seems, part of the low cost model is paying pilots well to ensure supply, commitment and retention.

I make more than a BA captain flying the same aircraft on the same routes.

VB, Freedom and Jet-connect are getting away with third world wages for the moment (addmitedly, VB are improving), but they will have trouble in the future when their people get the sort of experience valued (and paid for) elsewhere in the world.