Gary Kelly: No Current Airline Like AirTran
#1
Original Poster
Join Date: Sep 2002
Location: Blue Ridge, GA
Posts: 5,492
Gary Kelly: No Current Airline Like AirTran
Kelly reveals SWA's initial strategy included retaining 717s and ATL hub-spoke base. Blames fuel prices for retiring both.
And that no airline today is succeeding like FL in 2010:
WABE
And that no airline today is succeeding like FL in 2010:
"AirTran at its peak had about 140 aircraft. There's no one operating like AirTran was, with dual-class service and a low-cost structure. AirTran is a very strong operator and had strong customer service. You don't have really have that [today] and certainly no one that's operating all Boeing equipment."
#2
Join Date: Jan 2012
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Posts: 435
I need to write a book about this acquisition.
#3
Join Date: Jun 2011
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#4
Join Date: Jan 2002
Location: Atlanta, GA
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He sounded pretty weak, almost indecisive in his interview. A quick check of Internet charts shows the price of fuel has seen the most stable years since the merger of the last 15 years or so, so that excuse is nonsense. Unless they brought AirTran expecting fuel prices to fall ??
#6
Join Date: Jan 2012
Location: In Exile
Programs: I fly for free.
Posts: 435
There is. If I decided to quit the industry all together forever then no problem. Until that time happens making enemies is about the unwisest choice one can make in this small field. Alternatively someone could throw a very big sum of money at me to make the sacrifice but doubtful that will ever happen
Dont worry, there will be a time place for everything though. Especially for the truth to come out. ^
Dont worry, there will be a time place for everything though. Especially for the truth to come out. ^
Last edited by PA42; Feb 18, 2014 at 12:11 am
#7
Join Date: Jan 2010
Location: SEA
Programs: UA AS DL Hyatt SPG/Bonvoy HHonors
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Kelly reveals SWA's initial strategy included retaining 717s and ATL hub-spoke base. Blames fuel prices for retiring both.
And that no airline today is succeeding like FL in 2010:
WABE
And that no airline today is succeeding like FL in 2010:
WABE
#8
Join Date: Jan 2012
Location: In Exile
Programs: I fly for free.
Posts: 435
Hmmm Not that I'd want WN to buy them, but AS / ALK has a low cost structure, they operate a two-class mainline fleet, and they are all Boeing mainline.
#9
Join Date: Jul 2013
Posts: 5,813
I don't know why the decided to buy Airtran then effectively give away more than half of the airplanes and discontinue service to a third of their locations. The reasons usually given don't really make a lot of sense to me.
#11
Join Date: Sep 2009
Location: New York
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I realize that Southwest took over Airtran's international routes, but that's not really worth the 3.4B that they paid (1.4B in cash and stock and 2B in debt and lease assumption). I personally thought that Airtran's business model was successful, and Southwest could learn a thing or two from it.
Airtran, I'll miss you.
#12
Original Member and FlyerTalk Evangelist
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Location: Kansas City, MO, USA
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#13
Join Date: Jan 2012
Location: In Exile
Programs: I fly for free.
Posts: 435
2012 data, not sure if 2013 is out yet externally to the public. Not everyone has reported Q4 data even at the moment this post is being made.
One thing GCK has done well is understood that capacity restraint is needed at SWA will creeping up ASM growth by upping gauge gradually. YoY CASM growth (both inc and ex-fuel) is not as high as you would like to believe it to be.
#14
Join Date: Jan 2010
Location: SEA
Programs: UA AS DL Hyatt SPG/Bonvoy HHonors
Posts: 2,008
2012 data, not sure if 2013 is out yet externally to the public. Not everyone has reported Q4 data even at the moment this post is being made.
One thing GCK has done well is understood that capacity restraint is needed at SWA will creeping up ASM growth by upping gauge gradually. YoY CASM growth (both inc and ex-fuel) is not as high as you would like to believe it to be.
I wonder if some of AS's disadvantage is due to higher costs up in Alaska and perhaps Mexico and Hawaii. Of course they get higher fares on those routes too, esp. Mexico and Alaska. I do know that AS has taken a keen interest in making sure they can compete with WN, and generally AS hasn't shrunk back from competing with WN on routes where AS has a frequent flyer base at at least one end.
I'm surprised that UA has a full cent cost disadvantage to DL. That's huge.
#15
Join Date: Oct 2010
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Good data.. I assume if/when WN enables red-eyes at least between long haul crew bases that will drop the CASM by a bunch
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