What Will Happen to SAT Airfares? (Houston, Dallas: airport, safety, food)

[atxcio]

Southwest has a newer fleet than AA, by far. AA's average age is 14 years, vs. only 9 for SWA. I also believe all current SWA 737's were bought new by the airline, none secondhand.

They are more reliable and consistent, too. No junk fees and no change fees if you modify your travel dates. They deliver a good product IMO, for the locations you can fly nonstop.

SWA Nonstop vs. AA Nonstop, I'm taking SWA everytime. However, when Jet Blue or Continental are in the mix, that's a different story...

[hello13685]

Good info. So how can they afford to be a budget airline, and what makes them so dangerous?

[atxcio]

Originally Posted by hello13685

Firstclassflyer, that Southwest comment was hilarious!! I know, how weird is it that Southwest has not had any major accidents when they only fly ancient 737s that have probably been passed down from every Third World airline imaginable.

Not really weird at all -- what would you expect from an airline that flies only one kind of plane? Only one type of plane for mechanics to maintain, only one type of plane for crews to fly. No suprise that fewer mechanical failures & accidents happen.

[atxcio]

Originally Posted by hello13685

Good info. So how can they afford to be a budget airline, and what makes them so dangerous?

They can afford to be a budget airline for the same reason I posted above (1 plane type no frills), plus they buy fuel contracts years in advance. So the price they pay now for fuel is far less than their competitors. Now, if prices of fuel go down, they'll take a hit on their hedge bet... but, they do it nearly every year and it's a very calculated risk.

And they aren't dangerous. Really, no US airline is. But if you are referring to the recent grounding they had, it was largely a political thing with the FAA... involved some politicans with NWA (older fleet, worst safety record) as constituents... don't remember the details exactly, but you can google it or look at some of the aviation forums like airliners dot net.

[42JetSet]

The best way to understand SWA is to read the book, "Nuts". I believe they are considered a "low cost" carrier, not budget. Different things entirely. Ryan Air is budget (lemme tell ya!).
Just a basic FYI -- they are able to maintain lower prices primarily due the fact they have only one airframe, the 737 (in many of its incarnations). Having a fleet like this is quite cost effective in that all their mechanics are 737 specialists, they only have to stock parts for 737s, their pilots only fly 737s. This also limits most 737s to shorter haul flights -- granted the 737-800 can do cross country, and does so. SWA also expanded slowly, bought gates carefully, pay their pilots (and other staff?) less. The founder of SWA, Herb Kelleher, was also very-very-very hands on for many years. They have had their problems, but for all intents and purposes, it has been a well-run airline with far fewer issues than the other major players. And, yes, it's considered a major player domestically (for more info on the Airline industry since deregulation read, "Hard Landings").

Duly noted on the gas thing above (being written the same time as my posting!) ha-ha!!

[Paka]

I love SW! We fly it whenever it is the option to where we need to be...usually Nonstop and always in shorter flying time even if there are connections required than with the others and their layovers...not always, but normally our best bet.

Unless and until their safety is an issue (and as long as there are not accidents, it is all talk) they are faster, cheaper and everybit as safe (if not safer) than the others.

If I flew 1st class everywhere I went, I suppose I would not like SW either...since they do not have a 1st class section...but for those of us that LOVE to stretch our travel $$ to be able to do more, they are PERFECT!!!

[firstclassflyer]

Some good points were brought up regarding Southwest. Here is what SWA's fuel hedge's look like:

According to 24/7 Wall St., here's what Southwest’s fuel hedges look like for the coming years:

"2007 is 95% hedged at $50/barrel;
2008 is 65% hedged at $49/barrel;
2009 is over 50% hedged at $51/barrel;
2010 is over 25% hedged at $63/barrel;
2010 is over 15% hedged at $64/barrel;
2012 is 15% hedged at $63/barrel."

So, for 07,08 and 09 things are looking pretty good. After that however, it's a whole new ballgame. They will need to increase prices along with the legacy carriers. Prices are already not the lowest in some markets.
My comment about SWA was a tongue in cheek remark that a lot of frequent business travelers make. It is a good airline for some...and definitely has found a niche. They do indeed use 737's...(although several different versions) and that does save money regarding parts,labor etc.
The 3 big reasons that a lot of us don't fly them are:
No Int'l destinations,no first class and they also don't fly into a major NYC airport.(No, I'm not driving from Islip into NYC). There are several other destinations that I need to travel to quarterly or semi-annually...that they just don't fly to.
I'm not a real big fan of the choose-your-own seat thing either...but that's just opinion.
I understand about "getting there quicker" and "nonstop" vis-a-vis "connections". That doesn't bother a lot of frequent flyers. Flying first class,The Admirals Club and Red Carpet clubs help out in that regard.
Plus, a lot us earn many, many frequent flyer miles. Miles that we either give to our families (I give a lot of air,hotel and rental car miles/points to my brother and his wife) so that they may use them for free (large Int'l) vacations that they otherwise would probably not take, or donate to charities such as Make a Wish Foundation or to Bring a Soldier Home etc..I very rarely use my own miles.

[Paka]

[
Plus, a lot us earn many, many frequent flyer miles. Miles that we either give to our families (I give a lot of air,hotel and rental car miles/points to my brother and his wife) so that they may use them for free (large Int'l) vacations that they otherwise would probably not take, or donate to charities such as Make a Wish Foundation or to Bring a Soldier Home etc..I very rarely use my own miles.[/quote]

Oh, but that is where you are mistaken my friend...by flying SW, we earn a "Companion Pass" where we get a "buy one get one free" pass for a YEAR...and can change the name on it 3 times per year...not a bad benny if you use it for your personal travel and normally travel together!

Southwest Airlines - Rapid Rewards Companion Pass Rules and Regulations

Of course, if you are not able to up and go together due to kiddos at home, that might not be as big a draw as it is for those of us who can finally do something together without worrying about school schedules and the like. Trust me, we did that for so many years we are like "oh my goodness" now that the opportunity only requires dog and fish responsibilities (and we have GREAT neighbors and we all take care of each others livestock when gone)!

The donation thing is something we use for those carriers we don't earn enough on to use. Great idea tho, and I am sure that the donations are greatly appreciated!

[firstclassflyer]

[
""""Plus, a lot us earn many, many frequent flyer miles. Miles that we either give to our families (I give a lot of air,hotel and rental car miles/points to my brother and his wife) so that they may use them for free (large Int'l) vacations that they otherwise would probably not take, or donate to charities such as Make a Wish Foundation or to Bring a Soldier Home etc..I very rarely use my own miles.[/quote]

Oh, but that is where you are mistaken my friend...by flying SW, we earn a "Companion Pass" where we get a "buy one get one free" pass for a YEAR...and can change the name on it 3 times per year...not a bad benny if you use it for your personal travel and normally travel together! """"






True, but you don't even have to fly Southwest to get the companion pass. All you need is enough SWA credits (can come from anywhere, credit cards, transfer points from elsewhere etc.).
Still....domestic travel can usually be had on the cheap, if one is flexible. I'm mainly referring to Int'l travel. That's where one can get the best bang for the mile.

Can we get back on topic? My butt hurts just thinking about a coach seat!

I think we'll still have the increases associated with higher fuel costs in the near future...but, I don't see airfares going crazy unless demand suddenly spikes (combined with the recently announced reductions). That's just my take.

[smitty12]

Originally Posted by atxcio

They can afford to be a budget airline for the same reason I posted above (1 plane type no frills), plus they buy fuel contracts years in advance. So the price they pay now for fuel is far less than their competitors. Now, if prices of fuel go down, they'll take a hit on their hedge bet... but, they do it nearly every year and it's a very calculated risk.

And they aren't dangerous. Really, no US airline is. But if you are referring to the recent grounding they had, it was largely a political thing with the FAA... involved some politicans with NWA (older fleet, worst safety record) as constituents... don't remember the details exactly, but you can google it or look at some of the aviation forums like airliners dot net.

I would also add that upgrading and flying the latest versions of the 737 gives them a fuel efficiency edge also. When your fuel bill for the year is in the neighborhood of three billion dollars, a 5-10% edge in efficiency is not chump change!! Makes up a lot of the difference in the cost of upgrading the planes.

Southwest faces $3 billion fuel bill - Aviation - MSNBC.com