gloopy

The big question is will the new mega legacies just sit back and allow a potentially future massive new entrant into those markets? This will force their hand in a way that nothing in history ever has. They will fight harder than ever because they will have to. SWA can't out bleed them all. If they try it will get very messy for all involved. They could bunt and just partner, but they aren't set up well for it hub wise unless they get a large NYC presence somehow. ANy route they could possibly do would have multipile legacies adding additional large widebodies and seat dumping at permanent intro fares until someone blinks.

shoelu

I agree that there is no way SWA can out bleed them all at least not at the same time. SWA would never jump into all the markets at once, it simply would not be feasible. They will start small with near international and South and Central America out of Hobby. United will be the only one battling SWA when it starts and possibly forever.

Remember that most of the legacies don't generate the majority of their profits from domestic operations, but use them to feed their international markets where the real money is made. Southwest will step into the international market with a sound money making domestic operation that will not need the international flying to subsidize it in any way. If SWA can remain profitable in domestic operations and then add the large international profits to the mix, they could be a juggernaut hard to stop.

lolwut

Ok. You're crazy.

80ktsClamp

They couldn't integrate the 717 fleet and you think they'll be all about getting widebody planes?

Sure!

Smokey23

I think you're being a little harsh. It's not that they couldn't, more like they didn't want to. The business case has been stated ad-nauseam...obviously it was a win-win for SWA and Delta (that whole one man's trash is another man's treasure thing).

It's less and less of a secret that SWA will eventually add another fleet type....GK has said as much on numerous occasions. Only question is whether it will be significantly bigger or smaller than a 737. Neither one would surprise me, though considering the general trends of where the airline is going, I would bet bigger.

KC10 FATboy

Ok first off, who would want to fly long distance on Southwest? Southwest isn't known for in-flight amenities or service, unless you're looking for stupid human tricks by the FAs.

Second, y'all are speaking as if Southwest has this huge advantage (don't mention the fuel hedge advantage is gone or they'll argue with you). In reality, during the economic downturn, Delta's saving grace has been the domestic market not international. There's simply too many seats as well as state sponsored subsidized competition on international markets. Emirates is growing rapidly and I believe they've become #4 in the world after the combined AA, UAL, and DAL.

Lastly, expanding overseas isn't like expanding domestically. There's all sorts of approvals that must be obtained as well as slots to procure. Building that from scratch isn't going to be cheap assuming there were slots to be had in the first place. Southwest would need to complete some mergers to become a prominent international airline.

If anything, I'm keeping my eye on Delta. They purchased that oil refinery in PA. They're already processing oil shale from the midwest so they're not having to deal with crude transported from overseas. If they perfect this, they'll have that Southwest like fuel hedge advantage.

satpak77

I am an admirer of SWA as an airline, but I see some challenges ahead as it competes with super carriers LCC/AMR, UAL/CAL, and NWA/DAL.

80ktsClamp

Well Cramer has shifted his position to move away from SWA for investing in airlines to shift particularly toward LCC and DAL.

Time to invest in SWA.

satpak77

Whatever Cramer says, do the opposite for sure. Side note (and this is an SWA thread, not an AA thread.....) , folks better not write-off AA. AA is gonna come back from the ashes and hand everybody's a$$ to them if they can get the morale, workgroups, and different managements on the same sheet of music.

Smokey23

Maybe yes, maybe no. One thing I notice is that our transcons are almost always full. Plus speaking of no frills, Allegiant is having no trouble filling up their HI flights from what I hear....

I think you're the one stuck in dated stereotypes of SWA. The main advantage we have these days is a large domestic network to draw from to support some international flights.

You act as if SWA thinks they will own international flying in the next decade. Look how long it took them to finally break out of the Lower 48! More international flying will come, but only when the market situation warrants and the approvals are obtained.

I would keep my eye on Delta too, if I were you. Always best to give the airline that signs your paycheck the most attention. As for Trainer, only time will tell if that was a stroke of brilliance or another case of vertical integration gone bad.