Archive for the 'Southwest' Category

Alaska and Southwest Tell The FCC To Approve Row 44

One of the biggest changes in inflight entertainment/services in the past few months has been the introduction of inflight Wi-Fi, and carriers like AirTran, American, Delta, United, and Virgin America (which has the entire fleet equipped) have been adopting it. These carriers have all been using Aircell’s ground-based GoGo service.

Meanwhile, Alaska and Southwest have been testing Row 44’s satellite-based system for a few months now, and Southwest is now trying to figure out what to charge for the service. Unfortunately, these two airlines can’t roll out Wi-Fi fleetwide until the FCC approves Row 44, and this process has been conveniently been slowed down by a competitor, ViaSat.

Mary Kirby, also known as “Runway Girl,” reports in an article from yesterday:

In a joint letter filed on 1 July with the FCC, lawyers for Alaska and Southwest say the expeditious grant of Row 44’s application for a permanent license “will generate enormous benefits, including substantial work for almost a dozen technology companies all over the United States at a critical time in our economy”.

The article also notes that the airlines what to move ahead on this because their competitors are making progress, which makes total sense, and I especially see that from Southwest’s perspective. The airline has been busy focusing on attracting more business passengers, and I think Wi-Fi is an important part of that plan (especially if they offer it for free or a discount to frequent passengers, as suggested here).

But I think the FCC should approve this, not just because I agree with the airlines, but because I’m flying Southwest to California next month, and I don’t think I can go a few hours without tweeting. :D

AAAE: Gary Kelly’s Speech (Question and Answer Session)

Yesterday, I wrote about Gary Kelly’s speech at the AAAE convention, and today I would like to share the highlights of the question and answer session, and some parts of it were very interesting.

The first question was about business travel, and to be honest Gary’s response wasn’t too shocking – customer feedback has been positive, and the company is trying to move away from a “one size fits all” model to one that provides more customer choice.

Next up was about international service, and Gary said that Southwest’s systems still aren’t capable of generating international reservations, but that will be coming. Gary then said that since Southwest has flies only the 737, markets like Mexico, Canada, and the Caribbean make sense for consideration and that “we’ll be evaluating those [international markets] in future years, but it is not a priority.” Continue reading ‘AAAE: Gary Kelly’s Speech (Question and Answer Session)’

AAAE: Gary Kelly’s Speech

As I mentioned in an earlier post, Southwest CEO Gary Kelly was one of the keynote speakers at the AAAE conference, and here’s my summary of his speech.

Gary started off with a great joke by saying he gave up smoking when Herb retired, and that it was all secondhand. But, it wasn’t all fun, as Gary turned right to the recession and said that Southwest really isn’t seeing much improvement in the economic environment, and that it is a difficult time for the industry as a whole. He mentioned that the industry is facing a “one-two-three punch” of low last-minute ticket sales, low demand, and rising fuel prices.

On the bright side, he did say that he thought Southwest was in good shape, as it has a strong cash position and access to new capital if it needs it. But then he mentioned that May RASM was weak and June isn’t looking much better. He also announced that this is first time that Southwest is reducing ASM capacity.

Gary then focused on new revenue initiatives like pets on board, and said that “we’re hard at work on several other near-term as well as longer-term revenue initiatives.” But, he quickly mentioned that he believes Southwest has a “very strong competitive advantage” by not charging for the first two bags and “isn’t leaving any money on the table” because of it, as Southwest is still outperforming other carriers in terms of revenue. He also claimed that the low fare brand helps Southwest in a recession, but that Southwest has had to discount fares, bringing about lower yields. Continue reading ‘AAAE: Gary Kelly’s Speech’

Interviewing Southwest CEO Gary Kelly

The highlight of the AAAE convention last week was being able to interview Southwest CEO Gary Kelly, who was one of the keynote speakers. When I asked Southwest about doing this a few months ago, I figured that it was a long shot and wasn’t too likely. But, it all came together! Many thanks to Paula Berg and Chris Mainz over at Southwest for helping to arrange the interview, and of course Gary for allowing me to sit down with him. I was really impressed that I was able to do this. I’m just an eighteen-year-old blogger after all!

Fortunately, I got to the hotel in plenty of time, and soon Chris met me in the lobby. Once Gary came down, I was pretty nervous - it’s not like I’ve been able to meet one-on-one with a Fortune 500 CEO before. I was excited as well, of course. I’ll be honest, it was pretty cool to shake his hand. I was impressed as well that he told me he would object if I didn’t call him by his first name.

I think that the interview went pretty well. The only snag was that I completely blanked out at the end of the interview and forgot to ask for a picture with Gary. Luckily, I was able to arrange meeting with him again in the lobby after his speech, and I was able to get it. Thanks, Gary for being so accommodating!

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But enough of my rambling. You can click here to listen to the interview. (If you’re having trouble playing it in your browser, it might be a good idea to right click on the link and select “Save Target As” or “Save Link As” and download the MP3 to listen to it.)

What Should I Ask Gary Kelly?

So, unless my flight is completely screwed up, on Monday morning I’ll be sitting down with Southwest CEO Gary Kelly in Philadelphia at the American Association of Airport Executives Conference, where he’ll be speaking.

First, many thanks to Southwest for giving me this opportunity. I’m pretty sure that this shows that Southwest is serious when it comes to new media.

Second, I already have a few questions in mind, but I’m looking for suggestions from readers as well. So, if you have any question suggestions, hit up the comments or e-mail me.

Cruise Trip Report Part 2: PVD-FLL, Courtyard Dania Beach

Southwest Flight #1746
May 22, 2009
Depart Providence (PVD):  1:00 PM
Arrive Ft. Lauderdale (FLL): 3:55 PM
Duration:  2 hours, 55 minutes
Aircraft: Boeing 737-700 (N904WN)
Seat: 14A

As my parents and I started boarding (we had A20, A21, and A22), the person who had A1 showed up, and I felt kind of bad, as she definitely paid a hefty premium for Business Select. I get the sense that this might have been her first trip on Southwest, as she didn’t know that the airline uses open seating. I’d also like to commend the gate agent doing check-in - she quickly noticed a couple of line jumpers and prevented them from getting onboard. There have been a good amount of complaints about non-enforcement on FlyerTalk, so I was glad to see someone get it right (heck, I even wrote Southwest about it).

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Photo Credit: My dear mother. :D

Anyway, I plopped down in 14A and we pushed back right around our 1 PM departure time. As we taxied to the active, I noticed one of ExpressJet’s charter aircraft parked on the ramp. I wonder why it was at PVD.

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In a rare PVD moment, there was actually a wait for takeoff, albeit a very short one. Soon, we had blasted off runway 23, which provided some great views.

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Newport (UUU)

I decided to take out my laptop quickly, but of course as soon as I did the person in front of me reclined, making typing pretty uncomfortable. But, I did test out using Gmail offline by using Google Gears, and it worked out great!

Soon the flight attendants took drink orders, and I ordered a Sprite. Peanuts (Southwest has switched back to honey roasted - yay!) and Wheat Thins were distributed.

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I was planning to read on the flight, but for the most part I stared outside the window and listened to music. Eventually, I whipped out my GPS and set FLL as the final destination. It was pretty cool to have my own personal moving map.

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Soon, we began our descent. I was hoping we would be landing on runway 9R since that approach comes in nice and low over the beach, but unfortunately 27L was the active that day. That approach, however, provides some nice views of the airport and city. Eventually, we were down a few minutes early and after a short taxi we were in at the gate. A few moments after we arrived a, JetBlue A320 pulled in next to us.

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There wasn’t a long wait to get off, and the bags were out pretty quickly. Overall, a good flight.

The only real wait of this day of the trip was for the hotel shuttle, but once it came it was a very short ride. The Courtyard Dania Beach is your pretty basic Courtyard, but we’ve always been pleased and it was our third stay there for a cruise (they do offer a shuttle to the Fort Lauderdale port, but we were leaving out of Miami). Overall, it’s a good place, especially when the stay is paid for with points. :D Like fellow BoardingArea blogger Marhsall Jackson said in his review, I highly recommend flying down and sleeping in a hotel the night before a cruise. It just makes life easier.

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After getting settled, we just went to a restaurant next to the hotel (The Islamorada Fish Company), and then relaxed at the hotel until it was time to turn in.

Southwest Plays With Its Fees

I know I’m a bit late to the game on this topic, but I wanted to share a couple of thoughts of last week’s fee announcement from Southwest. If you haven’t heard already, the airline will be charging $75 for pets to fly onboard (they weren’t allowed in the past), is increasing the fee for the third bag from $25 to $50, and adding a service charge of $25 each way for unaccompanied minors. To be honest, when looking at the wonderful FareCompare fees chart, these new fees seem pretty reasonable.

Anyway, a few thoughts I had:

First, Southwest used one of my least-favorite PR moves with this one. The press release for these changes was entitled “Southwest Airlines Welcomes Fluffy and Fido Onboard.” Where’s the part about bags and unaccompanied minors? (Edit: Southwest’s Paula Berg does point out that it was mentioned in the subtitle of the news release.) At least the title of the company’s blog post on the subject, “Southwest Airlines Introduces New Pet Policy, Other Changes,” implies that something else is being announced as well. I know that trying to make positive headlines is standard operating procedure for basically any company in any industry, but putting in other information just irks me sometimes.

Second, why mention that the unaccompanied minor and third bag fee changes affect a very small amount of passengers? I guess Southwest wants to say they’re not screwing over too many people with fees, but I think such a statement could backfire, at least maybe from a shareholder perspective. Someone might ask “is something that affects a small number of passengers really help revenues?” I know this is a minor thing, but I thought of it nontheless. :D

Third, and most importantly, I think, what does this do to Southwest’s “No Hidden Fees” image that it has worked so hard to protect? Well, if we look at one of Southwest’s ads from last year (thanks to Beckles on FlyerTalk for that), you can see that none of the recent changes affect those. But, see the URL on that ad? Well, southwest.com/nofees redirects to southwest.com/nohiddenfees, which now redirects to the homepage. Thanks to Google’s cache, we can see that Southwest even used the FareCompare chart, but now its gone. (Thanks to ftnoob.) Ftnoob alos pointed out on FlyerTalk, that while Southwest has mentioned its lack of hidden fees in press releases, it isn’t anymore.

Could this mean that more changes could be on the way? Maybe, but who knows, the changes could just be part of Southwest’s new ad campaign. (I saw some examples in PVD and FLL on Saturday and liked them.) Anyway, it will be interesting to see what happen.

Southwest Announces…Milwaukee?

Not that I think it’s a bad idea, but I was just surprised. Based on Southwest’s recent actions I was expecting another major city (I was thinking the next city would be Atlanta). But, alas, Gary Kelly announced the service during yesterday’s shareholder’s meeting, and you can see a blog entry here.

What’s annoying is that Southwest didn’t release any details about where the airline would fly out of MKE. As Cranky noted when the carrier announced Boston, this seems to be Southwest’s habit lately. In my opinion, it’s just plain annoying. If an airline is going to tack on a new city to its route map, it should tell its customers where it’s going to fly right away. Period. Anyway…

At first glance, this move can make it seem like Southwest has AirTran and Midwest in its crosshairs. Frankly, it’s hard to tell until Southwest announces its service, but I think it could be possible, as the official press release says the carrier will “offer multiple destinations from the airport of choice for business and leisure travelers.” That’s pretty darn ambiguous. But, I would expect service to a couple of focus cities (BWI, DEN, PHX, and LAS come to mind as possibilities.) For leisure routes, some of the Florida markets could work.

But, we’ll get a better idea once Southwest tells us where they’ll be flying from MKE. If it’s a few flights just focus cities, then Southwest is just “plugging in” MKE to the rest of the system. If we see a good number of routes, then I think it’s safe to say that Southwest is looking to steal a good number of passengers from other carriers. Nevertheless, I have to think that Southwest is a bit limited in terms of growth because Southwest has been adding these new cities without growing the fleet.

Nevertheless, this could get interesting depending on what Southwest does here. AirTran has built up its presence after not buying Midwest, which has cut a great deal of service but has built up a partnership with Delta/Northwest. This could just shake up things further.

Speaking or AirTran, the carrier issued a press release yesterday entitled “AirTran Airways Continues Rapid Expansion at General Mitchell International Airport.” Gee, I wonder if that had anything to do with the Southwest announcement!

Summer Reading: Southwest Passage

I love taking the bus to my summer job. It saves on both time and stress, but it also gives me plenty of time to read. So, I’m hoping to read a few things over the summer and post some reviews here.

If I asked you to name some of the people influential in the founding of Southwest Airlines, some names that would probably pop up are Rolling King, Herb Kelleher, and Colleen Barrett. And all of those answers are correct. King got the idea of the carrier started, Kelleher won some very important legal battles for the airline and became one of the best leaders in the industry (in my opinion), and Barrett, I think, deserves much of the credit for developing Southwest’s culture.

One name that is consistently left out of Southwest lore, it seems, is the late Lamar Muse. Yes, he is mentioned in the company’s official timeline on its webpage, but, it seems that unlike other Southwest leaders, there is not a 737 bearing his name. A few years ago, he published a book entitled Southwest Passage: The Inside Story of Southwest Airlines’ Formative Years, which is now out of print. Fortunately, curbcrusher from FlyerTalk lent me a copy.

Muse makes it clear in the book that he thinks his story is what people should be paying attention to. In fact, he even criticizes other books on the company:

And rest assured, any similarity between this real story and and the convoluted tales told in Hard Landing: the Epic Contest for Power and Profits That Plunged the Airlines Into Chaos(1995) by Thomas Petzinger Jr. and Nuts! Southwest Airlines’ Crazy Recipe for Business and Personal Success (1996) by Kevin and Jackie Freiberg is purely coincidental. (Page 91)

The first nine chapters, which take up less than 70 pages, can be skipped. I’m not saying they’re not worth reading, but they focus on Muse’s childhood and early airline career. I enjoyed these chapters since I did learn a lot of airline history, but a reader wishing to rush could skip them to get to the stories about Southwest.

In 1971, Muse was hired by then Air Southwest as CEO and president, and he quickly made some big changes:

The first thing I did after taking over the chair  was to suggest a name change for our new airline. Since Air Southwest sounded to me like some Mickey Mouse, third-level carrier, I convinced the board to change the name to “Southwest Airlines Co.” (Page 68)

Muse also tells the story about how the 737 was chosen and how he helped the airline get a good deal on its first aircraft (at first, it does seem that he is beating his own drum a bit much). He also goes into great detail when explaining the efforts made to receive initial financing, and since he is an accountant by training, Muse goes into great financial detail in other parts of the book as well. This might be a turn off to some readers.

But, Muse’s recollections of the early days are very well-done, and he describes important events, like the decision to use the 10-minute turn, and what new markets the carrier would serve, very well. Memos sent to the board of directors are constantly quoted, and are quite helpful. Muse’s descriptions really do make the reader feel like he or she is right there calling the shots with him.

The book did reveal some nuggets of Southwest history I didn’t know. I had no idea that the company was in the process of setting up a subsidiary company to operate flights out of Midway back in the late ’70s. (Ironically, one of the routes being considered was MDW-MSP!)

Over time, tension started to build between Rollin King and Muse, and it’s clear that Muse has an ax to grind, as he makes numerous jabs at King. Some examples:

The board members kept asking me the same old question: “What would happen to Southwest if you got run over by a truck?” Well, in the first place, I was not going to get run over by a truck, unless it might be one driven by Rollin King. (Page 166)

…I had the opportunity to…renew my acquaintance with Rollin’s ex-wife, Marsha. At lunch…we all agreed that Marsha and I had something in common. We both had been screwed by Rollin King. (Page 197)

Eventually, Muse left Southwest in 1978 after resigning in a sort of unceremonious fashion. Eventually, his son started another carrier called Muse Air, in which Muse became heavily involved over time. It was eventually sold off to Southwest.

Toward the end of the book, Muse does make some suggestions that, in my opinion, are a bit far-fetched. For example, on pages 213-214 he suggests Southwest get some gates at DFW and use that as a way to eliminate all crew bases other than Dallas. Later, on page 218, he lays out some suggestions to Herb for a post-9/11 environment:

Second, I would install as permanent equipment in the cockpit two .38 revolvers loaded with bullets that would not penetrate the fuselage….I would advertise the hell out of it, and just dare terrorists to try something. I guarantee you, passengers will swarm to your flights.

Muse does have a very bitter tone at times, that I think can be unnecessary and detracts from his main book. For example, he calls Colleen Barrett’’s presidency as “an honorary position,” which I think is pretty insulting. (Interestingly, he recommends Gary Kelly to be COO and president, and he is now CEO, president, and chairman.)

But, he does have great advice in other parts, I think:

It is time to get back to basics, get costs under control, be the low-fare carrier in fact rather than fiction, and stay the course. (Page 216)

I also found it interesting that he heavily criticizes yield management at one point, and believes that having many fare classes isn’t the right way to go.

But, despite Muse’s clear bias in some sections, this is a great book, and I think anyone interested in a great airline case study should pick it up. This book is highly informative, and should be read by anyone looking to go into the airline business. Unfortunately, it is now out of print, but I would recommend trying to get it from a library.

And, if there’s one thing I learned, it’s that Lamar Muse deserves a 737 with his name on it, in my very humble opinion.

AirTran Ups the Ante on BOS-BWI

Ah, the Boston-Baltimore route has become such as hub of activity lately. Southwest announced service, then JetBlue decided to hop on, and now Delta is bailing. Now, AirTran has made a move to help keep O&D passengers by offering double rewards credits:

The double A+ Rewards credits promotion applies to flights taken between May 12 and December 31, 2009. To be eligible for the extra A+ credits, travelers must be a member of A+ Rewards and register for the promotion online at http://www.airtran.com before traveling. A+ Rewards signup and promotion registration are free. Double A+ credits are earned by passengers traveling on nonstop flights between Baltimore/Washington and Boston.

Click here for the press release.

I would expect something similar to come out of Southwest. They often offer bonus credits when a new destination is launched, and I don’t see why BOS and LGA would be any different. I wouldn’t be shocked if JetBlue came out with something as well.