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Originally posted by tw
[BPreviously cited were airlines such as TWA. Anyone notice that TWA's top management did not come with airline experience. Instead they just kept flying the same planes longer - cost controls. When TWA went under, they had the oldest airplanes in the industry. MBA attitudes saw profits in money games - depreciation and cost controls - rather than in better airline operations.[/b]
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The airline was still suffering from the effects of Icahn, some 10 years after he faded from the picture. TWA's service was excellent...but to be successful, you have to perform well AND make money.
(As a side note, thank God their name is now off the dome in St. Louis.)
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Why does Southwest do so well? Before discussing bail outs, we should be discussing whose top management comes from where the work gets done and whose management instead has a cost control mentality.
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I'm not exactly sure, but these would be my posits as to why Southwest does well, and is flying almost all its flights right now:
--No international travel: Since Southwest only flies domestically, they can use smaller Boeing planes. While the cabin can be cozy, it's no worse than I've seen on other carriers.
--No assigned seating: I love the boarding pass...gives people a good reason to get to the airport early.
--Expenses are low???: With exceptions of course, Southwest flies into smaller airports: e.g. Chicago Midway, Houston Hobby, Islip (Long Island), Burbank. Would it be safe to assume that it saves money b/c they're not renting gate space at places like O'Hare or LAX?
--No frills: Domestic flights...and I believe most of their flights tend to be short. No need to serve a lot of extras to the customers. When I was flying on them from St. Louis to BWI, I believe we were served cheese danish Pop-Tarts for breakfast.
If US Airways is buckling as they say they might, perhaps Southwest should look into moving a little further up I-95...or at least consider LVI.