Originally Posted by
sailingfun
You should be very concerned about SW. Atlanta is still the economic engine that drives Delta airlines. If we don't improve our customer service they are going to do some serious butt kicking in ATL. While their costs are higher then Airtran they offer the ability to fly anywhere in the US with destinations Airtran could not match. Network is very important in overall yields. They will now offer a domestic network close to Delta and maintain a large cost advantage. Take a look at SW's costs on a stage length adjusted basis for like aircraft and you will see that Delta is going to have a problem. We will see if our management team is up to the task. Their decisions in the next few years and the overall customer service we provide will be critical to the future of Delta.
I definitely agree that they win in customer service, and DAL needs to really improve that (mostly a policy issue I think that hurts customers), but SWA's costs are steadily increasing.
cant-call-southwest-discount-airlines-wsj: Personal Finance News from Yahoo! Finance
Southwest's average ticket price has jumped 39% in the past five years, while the average ticket price for domestic trips for the industry was up 10%, according to the Department of Transportation.
If I were SWA this would concern me. Add to that the fact that their fuel hedging strategy is no longer an advantage...they had a negative quarterly earnings precisely because their hedges were too high.
Yes, I hope the management team is up to the task, but I think RA is pretty smart in this regard.