 |
 |
Southwest Airlines annual report
| September 23rd, 2016 at 1:33:05 PM permalink | |
| Nareed Member since: Oct 24, 2012 Threads: 346 Posts: 12545 |
It was some time ago. I recall we crossed daily and drove straight to the one big mall. What i do remember is the town right at the border is Hidalgo, TX. That's very ironic.
When I went, there was one AM flight from MEX in the morning and turned right back. Then in the early evening there was another one from a very short-lived airline called Aerolineas Internacionnales, which flew old B-727s (last time I flew that type). In between flights, the airport was closed.
It's when you see things like this that you think perhaps Texas ought to have remained a country, or it would have been wiser to divide it into three to five states. It's big enough to be two whole countries, not just one. Perhaps the dynamics of air travel would have been different. Donald Trump is a one-term LOSER |
| September 23rd, 2016 at 1:56:15 PM permalink | |
| Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 |
Texas has the right to break up in as many as four states. They secured that right when they entered the Union. California didn't do the same, although it is now bigger than Texas. The dynamics of air travel will probably remain very national. In order to protect certain industries, we do without service. Grocery chains have opened up in the USA, and we now have several European chains operating. |
| September 23rd, 2016 at 2:31:25 PM permalink | |
| Nareed Member since: Oct 24, 2012 Threads: 346 Posts: 12545 |
There has been talk about splitting California, too. I don't think it will happen, with either state, as it would throw the electoral games out of whack.
For a while. Eventually more trade barriers will fall. I'm delighted every time one of Norwegian's subsidiaries skirts the rules and moves into new markets. I think they're flying 737s from the US to the Caribbean. I wince when US-based airlines complain about it. Instead of complaining, they should look for ways of skirting the rules, using fifth freedom rights, etc. and moving into new markets. A while ago Patrick Smith complained in his blog that the US has not had a global airline since Pan Am died. I don't know if this is what he meant, but the big remaining three should focus on carrying passengers anywhere there's service to be offered and money to be made, rather than just to and from the US. The Gulf airlines are doing amazingly well with that.
You must know the largest grocery store chain in Mexico is Wal-Mart, right? I wonder if Donald Trump will threaten reprisals unless Wal-Mart moves all those stores back to the US... Donald Trump is a one-term LOSER |
| September 23rd, 2016 at 6:10:49 PM permalink | |
| Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 |
I'll bet you Republicans are the greatest overall beneficiary of Mexican labor. Back to Southwest, I looked at the number of trips flown since 1975. Expansion was fairly constant for many years, then jumped up with the acquisition of Air Tran in 2011. Peaked in 2012 at 1.36 million trips. You might argue that it is maturity, as eventually Southwest had to reach all the airports that they expected to reach, and now future growth is by packing more seats per plane (146 seats per plane in 2015 up from 135 seats per plane in 2011). Seats per plane is sometimes called "gauge", so when an airline trades in their order of planes for version with more seats it is called "up-gauging". But it also means that Southwest will never grow much beyond flying to 33 out of 72 small airports. So service to those millions of customers will largely consist of a handful of regional jets flying to a hub (at great expense) where they can look forward to connections. Millions trips - Yr - Increase 1.27 2015 0.9% 1.26 2014 -4.4% 1.31 2013 -3.6% 1.36 2012 3.3% <===== peak number of trips 1.32 2011 18.3% 1.11 2010 -0.9% 1.13 2009 -5.5% depression cut back 1.19 2008 2.6% 1.16 2007 6.3% 1.09 2006 6.2% 1.03 2005 4.8% 0.98 2004 3.3% 0.95 2003 0.3% 0.95 2002 0.7% 0.94 2001 4.1% 0.90 2000 6.7% 0.85 1999 5.0% 0.81 1998 2.6% 0.79 1997 5.0% 0.75 1996 9.2% 0.69 1995 9.8% 0.62 1994 14.3% 0.55 1993 24.7% 0.44 1992 14.5% 0.38 1991 13.2% 0.34 1990 11.0% 0.30 1989 234.3% 0.09 1980 419.3% 0.02 1975 |
| September 24th, 2016 at 3:23:45 AM permalink | |
| AZDuffman Member since: Oct 24, 2012 Threads: 135 Posts: 18209 |
How much do they really need to grow? While growth is a business mantra, so many businesses take a good business and kill it by growing into something they are not suited for or do not understand as well. Might well be better for them to just keep concentrating on the small airport market, focus on taking more and more market there. Focus on keeping debt low and good ROI. Become an income not growth company? The President is a fink. |
| September 24th, 2016 at 4:59:30 AM permalink | |
| Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 |
They are going to grow by retiring the last 96 B737-300 jets by 3rd quarter 2017, and upgauging from 143 to 175 seat jets. They may grow into Mexico and central America, but they don't seem to be making that a priority. I don't necessarily see anything wrong with turning the fuel savings into profit. At least if fuel goes back up then profits will just go back down, but the company won't be in trouble. But it doesn't look good for the 5% of air passengers scattered across hundreds of tiny airports. Although most airports reports passengers (boarding, disembarking and riding through), the FAA counts "boardings only". An airport is "small" if it boards fewer than 2,000,000 passengers per year An airport is below "small" if it boards fewer than 400,000 passengers per year American Airlines flies to 80 domestic destinations United Airlines flies to 78 domestic destinations Delta's number of domestic destinations is not immediately obvious Southwest services 84 domestic airports 24 out of 30 large airports (DFW, HNL,IAH,JFK,MIA,ORD are the 6 large hub airports not served) 27 out of 30 medium airport (Cincinnati Airport is the only medium airport not in Hawaii or Alaska not served) 33 out of the 72 small airports, and 3 airports in Texas that are below small (legacy of earliest history of the company). Amarillo, Corpus Christi, and Harlingen/South Padre Island 341,125 AMA 338,312 CRP 259,864 HRL Most airlines would serve all 30 large airports and all 30 small airports with mainline jets. They will serve some of the 72 small airports, but most of them with regional subsidiary. Southwest does not fly to 6 large airports, but that is more of a business strategy. Flights in Dallas are in DAL love field instead of DFW. Houston they fly to HOU instead of IAH. Chicago fly to Midway instead of ORD. In New York they fly to Newark, La Guardia and Islip instead of JFK In Southern Florida they fly to FLL instead of MIA They don't fly to Hawaii Medium airport skipped by Southwest Presumably Southwest will fly Cincinnati/Northern Kentucky International Airport once Delta pulls out They don't fly to Anchorage or Maui |
| September 24th, 2016 at 7:38:07 AM permalink | |
| DRich Member since: Oct 24, 2012 Threads: 51 Posts: 4966 | Paco, which airports do United and American fly to that the other doesn't? At my age a Life In Prison sentence is not much of a detrrent. |
| September 24th, 2016 at 7:49:35 AM permalink | |
| Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 |
I know I said UA has 78 domestic destinations and AA has 80, but that is their advertising. They can always put a mainline jet in place of a regional jet at the last minute or vica versa. Just looking at the most recent month (March 2016) the most prominent is JFK which United pulled out of completely since they are so dominant in Newark. Normally United would fly ONT to DEN ,and United Express to other United hubs. They must have changed to United Express planes at the last minute
These airports had both United and American. Of the 30 large airports, United does not fly to JFK, and neither airline flies to Midway in Chicago. Obviously they serve the other 28. ...... UA CODE AA
Of the 30 medium airports the following six are not served by both United and American CVG, DAL,HOU,MKE,OAK,ONT ...... UA CODE AA
Of the 72 small airports the following are served by both United and American ...... UA CODE AA
|
| September 25th, 2016 at 8:24:49 AM permalink | |
| DRich Member since: Oct 24, 2012 Threads: 51 Posts: 4966 | Thanks Paco, you amaze me. At my age a Life In Prison sentence is not much of a detrrent. |
| September 25th, 2016 at 10:32:42 AM permalink | |
| Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 |
Thank you, but you just sort of have to figure out how the database functions work in Excel. MAP=millions of annual passengers taking off and landing The 30 large airport by definition carry over 1% of the passenger load. They start at 16 MAP and advance to over 100 MAP in Atlanta. cumulatively they carry 72% of the traffic. The 30 medium airports are from 4 MAP to 16 MAP and large & medium cumulatively carry 88% of the traffic. The 72 small airports carry from .8 MAP to 4 MAP . Large, medium and small carry 96.5% of traffic. The remaining 413 commercial service airports carry the last 3.5%. Mexico only has 5 airports with more than 4 MAP. Mexico City carries a passenger load between Orlando and Newark, NJ and is of absolute vital importance to the Mexican air traffic system, with Cancun in 2nd place. All the Mexican airlines to some extent depend on traffic between Mexico and the USA to remain profitable. But their LCC airlines operate on very low average ticket prices and are essentially competing with luxury buses (a category of transportation almost completely missing in USA). --------------- This summary table shows that Southwest airlines real strength is in the medium size airport Nation : Southwest 72.6% : 54.5% large 30 airport 15.4% : 36.8% medium 30 airports 12.0% : 8.8% other 485 commercial service airports Allegiant has built most of their business model on small airports serving popular destinations. They don't sell connecting tickets!  - |