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Old Jun 1, 2005, 11:21 am
  #46  
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Originally Posted by RTG
I heard this morning that it would save over $500K annually.
But there has to be some cost to the bad PR NW is garnering for it's decision, especially coming hard on the heels of the spinzel story which was also all over the media. In the grand scheme of things $500K may not be all that much when you have to spend many times more than that to convince the average traveller to try NW instead of the competition.
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Old Jun 1, 2005, 11:34 am
  #47  
 
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Originally Posted by tcook052
But there has to be some cost to the bad PR NW is garnering for it's decision, especially coming hard on the heels of the spinzel story which was also all over the media.
Yeah...I am think the oppurtunity cost for NWA is gonna be high with all these cuts.

The sad thing is that to run a successful business you need to plan and run your business for the long term, yet at the same time the stock market demands change in the short term. The bulk of management knows what they have to do to make longevity real, but the don't want to do it because the initial costs and possible losses will get them fired.

As much as alot of people hate Southwest you have to admire their management. They do what they must to ensure long term success, and in turn the are always profitable. Amazingly Southwest has never laid off an employee due to sagging business. Their employees have great job security and due all the little things that help the bottom line because they know they'll be rewarded. They may offer bare bones service, but they use common sense in their business model.
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Old Jun 1, 2005, 11:34 am
  #48  
 
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Originally Posted by tcook052
But there has to be some cost to the bad PR NW is garnering for it's decision, especially coming hard on the heels of the spinzel story which was also all over the media. In the grand scheme of things $500K may not be all that much when you have to spend many times more than that to convince the average traveller to try NW instead of the competition.
Top ten reasons a domestic flyer would use a certain airline over another:
1. Cost
2. Cost
3. Cost
4. Cost
5. Cost
6. Cost
7. Cost
8. Cost
9. Cost
10. Pretzels and magazines.

I know, no magazines does not mean cheaper fares but it may save ~10 jobs. I am wondering if NW is doing all the cuts for bad publicity to show off to the greedy unions.
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Old Jun 1, 2005, 11:34 am
  #49  
 
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Originally Posted by HMizzle
Yeah...I am think the oppurtunity cost for NWA is gonna be high with all these cuts.

The sad thing is that to run a successful business you need to plan and run your business for the long term, yet at the same time the stock market demands change in the short term. The bulk of management knows what they have to do to make longevity real, but the don't want to do it because the initial costs and possible losses will get them fired.

As much as alot of people hate Southwest you have to admire their management. They do what they must to ensure long term success, and in turn they are always profitable. Amazingly Southwest has never laid off an employee due to sagging business. Their employees have great job security and do all the little things that help the bottom line because they know they'll be rewarded. They may offer bare bones service, but they use common sense in their business model.
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Old Jun 1, 2005, 11:36 am
  #50  
 
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Originally Posted by HMizzle
As much as alot of people hate Southwest you have to admire their management. ... They may offer bare bones service, but they use common sense in their business model.
Exactly, a cheap product at a cheap price that people love to buy!
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Old Jun 1, 2005, 11:44 am
  #51  
 
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I was thinking more about things like treating your employees great and in turn getting great work out of them...not resorting to "knee jerk" service cuts...I could go on and on.

People do love low fares but there is a market for both kinds of airline. I'm just waiting for a Legacy to step up and say they are willing to sacrafice a few quarters in favor of long term profitability.
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Old Jun 1, 2005, 11:47 am
  #52  
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Originally Posted by fromYXU
I am wondering if NW is doing all the cuts for bad publicity to show off to the greedy unions.
Intentionally setting out to garner bad PR in a nasty union-management fight? Nothing on the labour relations front would surprise me anymore.

The other poster was spot on about how different a culture it is at WN. <sigh>
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Old Jun 1, 2005, 3:56 pm
  #53  
 
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I do not see why they would cut anything from the clubs, I can understand the planes. People with club passes are either flying international or fly a lot. Make cuts that will affect people with cheaper fares or the higher fares will have to come down for the lower service.
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Old Jun 2, 2005, 9:00 am
  #54  
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Originally Posted by LBJ
Heh, I was on a MSP-CMH flight last week and they had a Newsweek
and 3 copies of Ebony (same month). After I grabbed the Newsweek,
a fellow pax went up to check out the selection. I'll never forget the
... expression on his face.
Yeah, that would be me. Seems like the only magazines I ever find onboard are:

1. Vermont Insurance Agent
2. Corn Farming Monthly
3. Romania Financial News
4. Polka Polka Polka! Digest
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Old Jun 2, 2005, 4:53 pm
  #55  
 
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Same here. The only magazines I can ever find are Money and Fortune -of which I have neither!
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