Activist Investor pushing changes at SWA

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08-30-2024, 12:28 PM

#391

REF 5

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Joined APC: Nov 2013

Position: 737CA

Posts: 186

Quote:

Originally Posted by at6d

I remember several management briefings in upgrade/recurrent events where they spoke about “big plans” for the -7. Things like South American destinations, using Belize as a jump off point to go south, etc….

Maybe Elliot is going to advocate for some of this but I don’t expect SWA will remain with a single type forever.

99% of the -7's coming are replacements for the 700. These day's I don't think you'll see any new destinations. Not until they get the house in order. They already hinted of redoing the order book with Boeing. Code words for we'll be taking less airplanes to reduce cap ex. JBLU, Frontier, Spirit and now SWA. All deferring aircraft. See the trend? Network carriers are killing it. They have done a great job of fighting the LCC's.

Last edited by REF 5; 08-30-2024 at 12:37 PM. Reason: Spelling

08-30-2024, 01:58 PM

#392

WHACKMASTER

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Joined APC: Jun 2010

Position: DOWNGRADE COMPLETE: Thanks Gary. Thanks SWAPA.

Posts: 6,783

Quote:

Originally Posted by Flyby1206

I’m just a blue shirt passing through here, but why the focus on SWA getting a smaller plane (-7, 220, etc) vs a larger one? You guys are a huge domestic carrier, why not leverage some of that into WB international flying which produces more revenue?

Bahahahahahhahaha!!!

(Nothing personal, honestly).

08-30-2024, 05:19 PM

#393

CA1900

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Joined APC: Jul 2008

Posts: 841

Quote:

Originally Posted by REF 5

To be honest, I don't know a true LCC that has a mix of widebodies and narrowbody aircraft and can do it profitably.

WestJet is doing pretty well with it. I see their 787 and 737 planes in Maui frequently.

08-30-2024, 09:23 PM

#394

e6bpilot

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Joined APC: Apr 2013

Posts: 3,650

Quote:

Originally Posted by REF 5

Average guage of the fleet has been increasing for year's. The -7 will have more seats than the current 700. No change between 800/8 seating. So when you say a smaller plane, thats true when compared to the 800/8 but it actually holds more seat's. When the -7 comes to the fleet it will be a mix of 143/150/175 seat aircraft. At most carriers they have been increasing guage because of increasing cost's. No different than here.

IMO the only way SWA would fly a widebody is if they acquired somebody or somebody acquires them. To be honest, I don't know a true LCC that has a mix of widebodies and narrowbody aircraft and can do it profitably. Especially in a p2p operation that relies heavily on O&D traffic like SWA. Most widebodies that fly are usually out of large hubs with much connecting traffic. SWA does some banking of flights but definitly not on the scale of the network carriers.

Very accurate post. The only way SWA would be able to pull something like that off is to basically mold itself into a legacy network carrier with more hub/spoke and premium offerings. Business travel is the big stick in situations like this, and those relationships don't happen by accident. They are cultivated over years if not decades. AA trying to go it alone and not cater to corporate travel managers via perks, discounts, and bulk deals has cost them billions (with a B) of dollars, accounting for years of profits lost in an attempt to break that mold. SWA doesn't have the horsepower to even get started down that path nor would they want to enter a highly competitive and extremely demand elastic situation like that.

They will stick with what they know. Domestic travel pays the bills and probably always will. Until that resource is tapped out, they will continue to mine it. I think there will be some codeshare relationships in the future, but you won't see SWA widebody metal in my career unless it is due to some sort of M and A type of situation and even then I highly doubt it.

Filling widebody planes with paying customers is fiercely competitive and has enormous barriers to entry. It's fun to talk and theorize about, but much, much harder to do. In many domestic markets, SWA is a dominant force and it will continue to try and gain market share in places where they can use their massive scale to compete where other airlines are forced to reallocate their resources. Cosplaying as United or Delta isn't in the cards nor would it be a good idea.