Southwest Airlines annual report

Quote: Nareed

That's like limiting them to planes with only one wing.

Could they fly from a border state to a non-border state?

I believe the limitation was only for flights originating in Texas.

https://en.wikipedia.org/wiki/Wright_Amendment

Quote: Nareed

That's like limiting them to planes with only one wing.

Could they fly from a border state to a non-border state?

The law was nonstop from Love to only TX and states bordering Texas
This was to make airlines use DFW instead of DAL I think

Quote: DRich

I believe the limitation was only for flights originating in Texas.

https://en.wikipedia.org/wiki/Wright_Amendment

Thanks!

I assume the operating costs and fees at DFW were so high SWA had to stay at Love Field...

Quote: terapined

The law was nonstop from Love to only TX and states bordering Texas This was to make airlines use DFW instead of DAL I think

Certainly!

The Wright amendment was modified several times as DFW became established on its own. Originally, only interstate flights and then flights to neighbor states were permitted. Only very recently have all restrictions been lifted from DAL airport.

The opening of a new airport ALWAYS results in someone who is happy at the old airport which is invariably closer to downtown. They often try and negotiate a deal (limited range / turboprops only / narrowbodies only / etc.)

In northern American there have been several prominent examples of new airports replacing or co-existing with older airports in the same metro area

Dallas Love Field and Dallas Fort Worth
JFK and La Guardia
O'Hare and Midway in Chicago
Denver Stapleton and Denver International
Montréal–Trudeau, Montréal-Mirabel International Airport
Reagan National, Dulles Airport

Dulles had to be subsidized for two decades before it could compete on it's own with National. But National had severe range limits and narrow body only.

Montréal Mirabel was an epic disaster, on an almost unmatched scale for infrastructure errors in Northern America.

As I said before Las Vegas will face a similar problem. There is no solid business case for slowly building up a new reliever airport while letting the original one operate at full capacity (unless you have huge federal subsidies).

Quote: Fleastiff

Seats, load factor, fuel futures versus airlline operations.

I think South West survives by the dedication of its employees.... in flight entertainment involving teeny weeny yellow polka dot life vests, landing delay trivia contests, get the cattle on, get the cattle off, turn the plane around and get flying again... works.

Ryan air works by bullying pilots into always landing on fumes. South West works without having to cut safety corners. That is the difference.

I've noticed them having a three pronged attack. One is the employees you mention. Hot-pants wearing hotties in the 70s to just more personable people today. I have not flown them but hear little other than praise. I did see one that needed a severe talking to, but that was just one.

Next a relentless cost cutting culture. One plane only. Fuel hedging even if it later bit them, nobody is perfect. And turn the plane fast squeeze one more flight a day. Now they are like some guy making a million bucks a year but still goes to Supercuts same as he always has.

Third they turn trash nobody wants to gold. Secondary airports they just luv'em.

Their journey was not planned, but it was neither an accident.

Quote: Ayecarumba

Quote: Pacomartin

Southwest was profitable when their operating income was only $15 per seat. Is there room for competition? It certainly seems so. Should we permit Interjet or even VivaAerobus and Volaris to operate in the USA?

While there is always room for competition, it will be tough sledding for anyone new to try to enter the market.

Possibly a quicker way to look it is that from 2011-2015
Southwest increased revenue by $12.95, but average costs per flight (other than fuel) went up by $13.
But the fuel costs have dropped by $23.75 and so they added $23.71 to operating income.
So operation income started in 2011 at $15.01 per flight + $23.71 in fuel savings => $38.72 new operating income per flight

In comparison
Volaris is an ultra low cost airline airline in Mexico with about 12% of the passenger load of Southwest. Their average trip length is 965 miles, which is similar to 994 miles for average trip length of Southwest.

But Volaris average one way revenue is 1152 pesos ticket revenue + 279 pesos per passenger non-ticket revenue. At current exchange rate that is about $77 which is roughly half of Southwest's one way ticket revenue of $154.85. Some costs of businesses are cheaper to operate in Mexico compared to USA, but when you are talking about jets and fuel most of those costs are similar between both countries.

A lot of people talk about morality for corporations. I am not saying that it is immoral for Southwest to turn all of their reduced fuel costs into operating income instead of lower fares, but I am saying it seems like there is room for competition.

Volaris is struggling to make a profit on revenue that is half of Southwest's revenue.


Southwest and Volaris went in partnership in late 2010 to people connect between certain Southwest domestic flights in the USA and certain Volaris flights to Mexico at designated connection airports, which included Las Vegas, Los Angeles and Oakland. Southwest Airlines and Volaris ended their connecting partnership on 22 February 2013. Avianca airlines invested $100 million in Volaris startup, and they do code shares with Condor, a German leisure airline based in Frankfurt.

The last time I checked Volaris in November last year, they still had a complimentary first checked bag. Charging for that would be true to their ULCC intentions and would raise some revenue. Although ULCCs claim all charges on top of the fare are to keep fares low...

Right now they're running a promo called "Travel by plane at bus prices." (It sounds better in Spanish "Viaja en avión a precio de camion," it rhymes!"). I suppose these fares are discounted.

Which terminal do southwest fly out of at LAX? After the debacle that was AA last month I'd be interested in trying someone else next time. Do they still give free checked baggage?

Quote: Aussie

Which terminal do southwest fly out of at LAX? After the debacle that was AA last month I'd be interested in trying someone else next time. Do they still give free checked baggage?

Free checked baggage and no penalty to change. You buy a nonrefundable ticket. Decide to cancel, the ticket can be exchanged easily within 1 year
AA DL UA, the big 3, you buy a 198.00 ticket and cancel, your ticket is worthless due to the 200.00 penalty
Southwest, you cancel, they will deduct 198.00 from future trip fare :-)
No seat assignments
As you board, 1st come 1st serve
Can pay a little extra to be in the 1st group to board
I fly Southwest personally

Quote: Aussie

Which terminal do southwest fly out of at LAX? After the debacle that was AA last month I'd be interested in trying someone else next time. Do they still give free checked baggage?

Terminal 1
Albuquerque, Atlanta, Austin, Baltimore, Chicago–Midway, Dallas–Love, Denver, El Paso, Houston–Hobby, Indianapolis, Kansas City, Las Vegas, Milwaukee, Nashville, New Orleans, Oakland, Phoenix–Sky Harbor, Pittsburgh, Portland (OR), Reno/Tahoe, Sacramento, St. Louis, Salt Lake City, San Antonio, San Francisco, San Jose (CA), Tucson Seasonal: Omaha

Terminal 2
San José del Cabo (begins December 4, 2016),
Puerto Vallarta (begins December 4, 2016),
Cancún (begins December 4, 2016),
Liberia (CR).