Southwest won't expand fleet through 2015 to reach profit goal

Apr 17, 2014 | Posted by: roboblogger | Full story: Star-Telegram.com

Southwest Airlines will freeze the size of its jet fleet through 2015, a one-year extension, as the largest discount carrier focuses on boosting its return on invested capital.

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1 - 4 of 4 Comments Last updated Apr 20, 2014
Bobby F

Alpharetta, GA

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#1
Apr 17, 2014
 

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At what point will the media stop calling them a discount carrier? How are they not just like a legacy carrier in today's marketplace?

Since: May 08

Santee CA

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#2
Apr 17, 2014
 

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They were the original discount carrier... They will never therefore be considered legacy. They just recently got transcon ability with the 737-800. Flights to Mexico and the Caribbean thanks to Air Tran technically make them an international carrier. Leaving your continent for reasons other than heavy maintenance may help. Interesting how the perennially profitable carrier now has issues since leaving it's business model. I predicted years ago taking on "legacy" carriers head to head would lead to big boy problems. People laughed at me and told me I was an idiot.... I will accept apologies any time.
Logic

United States

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#3
Apr 19, 2014
 
They are discount because they do not offer a premium cabin.

Others have capitalized on marketing as discount carriers even though they do have a premium cabin. Much of the Media unfortunately are completely inept.

Since: Apr 08

Tulsa, OK

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Apr 20, 2014
 

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Prost wrote:
They were the original discount carrier... They will never therefore be considered legacy. They just recently got transcon ability with the 737-800. Flights to Mexico and the Caribbean thanks to Air Tran technically make them an international carrier. Leaving your continent for reasons other than heavy maintenance may help. Interesting how the perennially profitable carrier now has issues since leaving it's business model. I predicted years ago taking on "legacy" carriers head to head would lead to big boy problems. People laughed at me and told me I was an idiot.... I will accept apologies any time.
Prost,
regrettably Southwest didn't foresee the successful merger and integration of the legacy carriers an awakening of multiple sleeping giants. Their revised business plan with the acquisition of Air Tran and the entry into the airports they had shunned for years that are froth with delays put them smack in the middle of the melee that the legacy carriers have been in for years.

I too made the comment early on when they decided to enter into LGA, welcome to the 'BIG SHOW'. You can throw your 20 minute turn around times out the window and now, you too can see what the good ol boys have been enduring for years. Notice that their On-Time performance stats have taken a beating because of their dependency on an old scheduling model using the same aircraft for multiple down line connections instead of point to point itineraries.

The International routes should be very interesting as well. Are they going to provide an enhanced meal and beverage service? Something new to them as well.

And let us not forget the union labor drums getting a bit louder in the background that will put some additional impact on their cost structure.

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