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Old 10-24-2007, 06:27 PM
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Does SWA really need to buy anyone for int'l expansion? With or without ATA what are the barriers to them just going to Canada, Mexico, etc?
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Old 10-25-2007, 02:57 AM
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Originally Posted by luv757
Does SWA really need to buy anyone for int'l expansion? With or without ATA what are the barriers to them just going to Canada, Mexico, etc?
There is not enough revenue in Canada and Mexico. Couple that with Open Skies, and there is an almost absolute need to seek global pax ... not just leisure markets.

Southwest is no longer a LCC. It is a Legacy carrier and the 'weening' is over. The legacies, minus AMR have matched Southwest's cost structure and lowered fares, the domestic pickings aren't that good any more. High oil and the low dollar are making it more difficult to make a domestic buck. Heck yeah they need to go international. Buying ATA was a great move, IMHO.

Tom
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Old 10-25-2007, 06:59 AM
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Originally Posted by NGINEWHOISWHAT
There is not enough revenue in Canada and Mexico. Couple that with Open Skies, and there is an almost absolute need to seek global pax ... not just leisure markets.

Southwest is no longer a LCC. It is a Legacy carrier and the 'weening' is over. The legacies, minus AMR have matched Southwest's cost structure and lowered fares, the domestic pickings aren't that good any more. High oil and the low dollar are making it more difficult to make a domestic buck. Heck yeah they need to go international. Buying ATA was a great move, IMHO.

Tom
1. There is tons of revenue in CA and Mex. Higher yields are very possible. Not just leisure traffic anymore. We're doing quite well with MDW-GDL for example, as compared to MDW-LGA, or DCA.

2. SWA doesn't own any part of ATA, but it sometimes seems that way.

3. If SWA is to do international on there own, they'll take at least a year to make it happen, and they'll have to change their boarding process, again. Assigned seats are required on Int'l pax manifests. A plan must be developed and approved by the FAA as well as other depts and foreign governments. Everyone one, other than pilots, must be trained on Int'l ops, i.e. ICE requirments. More hiring at the Int'l destinations, therefore more training. Proving runs.

If you've never done it, it will take a while, but once you've done it, things flow easier.

ATA is working on MNPS for the B737 and S. American ops. as we speak. Since we've done it before, it's not all that hard. As a comparison: It took us less than 9 months to get ETOPS for the B737. It took Alaska 22 months.
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Old 10-25-2007, 12:08 PM
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http://www.iht.com/articles/ap/2007/...al-Flights.php


Southwest Airlines working toward international flights via ATA

The Associated Press
Published: June 19, 2007


DALLAS: Southwest Airlines Co. is planning to sell seats on ATA Airlines flights from the East Coast to the Caribbean by 2009 and later to Europe, Southwest's CEO told a business group in Baltimore.

Southwest has been upgrading its computerized reservations system for international service on ATA by 2009 for some time. But Chief Executive Gary Kelly's comments Monday appeared to be the most detailed look at the airline's plans for connecting to foreign destinations.

Southwest and ATA already operate a partnership in which each can sell seats for connecting flights on the other carrier, a common airline industry practice called code-sharing. The agreement has already allowed Southwest to offer service to new U.S. destinations, including Hawaii, on ATA jets.

Kelly said Southwest will offer service from Baltimore-Washington International Airport to Mexico, Canada and the Caribbean by 2009 and to Europe soon after, once Southwest completes work on modernizing its computer systems. He made the comments at a BWI business group's annual meeting.
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Old 10-25-2007, 12:09 PM
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Originally Posted by HalinTexas
2. SWA doesn't own any part of ATA, but it sometimes seems that way.
It was late and I was tired.

Tom
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Old 10-25-2007, 12:31 PM
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Originally Posted by NGINEWHOISWHAT

Southwest is no longer a LCC. It is a Legacy carrier and the 'weening' is over. The legacies, minus AMR have matched Southwest's cost structure and lowered fares, the domestic pickings aren't that good any more. High oil and the low dollar are making it more difficult to make a domestic buck. Heck yeah they need to go international.

Tom
Except all are so poorly run and mismanaged that SWA will still kick their a$$.
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Old 10-26-2007, 11:02 AM
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Originally Posted by Pilot41
Except all are so poorly run and mismanaged that SWA will still kick their a$$.
All the legacies have been GUTTED to match the cost structure of SWA. I just don't see any a$$ kicking. I'm worried more about the fly-by-nights than SWA.

Tom
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Old 10-26-2007, 05:35 PM
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Originally Posted by NGINEWHOISWHAT
All the legacies have been GUTTED to match the cost structure of SWA. I just don't see any a$$ kicking. I'm worried more about the fly-by-nights than SWA.

Tom
Unfortunately, the gutting didn't work. SWA CASM = 8.8 cents while the average legacy domestic CASM = 14.2 cents. Source; Dan Akins, Airline Industry Analyst.
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Old 10-26-2007, 07:40 PM
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Originally Posted by NGINEWHOISWHAT
There is not enough revenue in Canada and Mexico. Couple that with Open Skies, and there is an almost absolute need to seek global pax ... not just leisure markets.

Southwest is no longer a LCC. It is a Legacy carrier and the 'weening' is over. The legacies, minus AMR have matched Southwest's cost structure and lowered fares, the domestic pickings aren't that good any more. High oil and the low dollar are making it more difficult to make a domestic buck. Heck yeah they need to go international. Buying ATA was a great move, IMHO.

Tom
This post just makes me say WOW.

Compare the lowest ticket prices to Mexico destinations to the "$39 one way to LAX". Cost the wife and I $800 to fly to Cabo two years ago with the tickets bought months in advance.

None of the legacies have come close to SWA's CASM.

Low dollar has more effect international than domestic.

SWA doesn't own ATA.

Not much else in that post that wasn't just a shot from the hip.
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Old 10-26-2007, 08:02 PM
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Originally Posted by 1Seat 1Engine
This post just makes me say WOW.

Compare the lowest ticket prices to Mexico destinations to the "$39 one way to LAX". Cost the wife and I $800 to fly to Cabo two years ago with the tickets bought months in advance.

None of the legacies have come close to SWA's CASM.

Low dollar has more effect international than domestic.

SWA doesn't own ATA.

Not much else in that post that wasn't just a shot from the hip.

I admitted I was wrong about ATA. It was late and I was tired. There was an infusion of cash from SWA. Everything else I will have to debate at a later date. I have a trip tomorrow. Before I do go, please clarify the $39.00 fare to L.A. comment. Thanks in advance and take care.

Tom
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