Security concerns will destroy Southwest Airlines
 

People within Southwest Airlines tell me that the new security requirements will likely put that airline out of business. Why? Because Southwest Airlines success is based on getting their airplanes filled and out of the gate within 40 minutes from the time the previous flight arrived. That way each plane could be used for as many as eight flights a day. People liked flying Southwest Airlines because of the fast turn around times at the gate, with fewer delays than other airlines. <BR> <BR>Now with the new security rules, every plane has to be inspected before it goes out by a team of security people. This will delay every Southwest flight an average of thirty minutes. The result will be fewer flights per plane per day, significant delays and drastically smaller revenue numbers for the airline. Wall Street and basic economics will call for significantly higher fares to make up the difference. If people refuse to pay higher fares, then what?

Southwest has a great balance sheet and according to my friends who work at the Dallas headquarters, is in good shape. They are working with the new security requirements and their load factors are approaching pre-September levels. <BR> <BR>I flew them twice last week and they were in/out of the gate areas in 25 minutes. <BR> <BR>Kevin, do you work for a competitor?

That did have a suspicious ring to it, I agree, Adam!

We've flown Southwest this week and they were their normal speedy and cheerful selves. Turnaround was just as quick as normal. Flight from BWI to Columbus OH on Tuesday morning about 2/3 full, return Friday evening almost completely full. Delay Friday evening was due to bad weather across the country rather than security. Their website is excellent, their schedules haven't changed and you get a person on their phone line straightaway. We will keep flying with them!

I flew on Southwest 5 and 17 days after the NYC tragedy, and aside from the obnoxious requirement of standing in line for boarding numbers at every single gate, the flights were fine and the staff was better than any airline I've ever flown. And yes, we were on time with every flight.

We are headed out to Bryce and Zion for Thanksgiving week and got the best fares as well as non-stop flights Tampa-Las Vegas on Southwest. Nothing else was as convenient nor as inexpensive. <BR> <BR>Our daughter and s-i-l are joining us there and found great SW fares too flying Phoenix-LV. <BR> <BR>That leaves only our son flying some other airline. He lives in Dallas and SW flights from Dallas to anyplace more than one state away are impossibly complicated to book. Too bad. Great airline.

Kevin - don't know where you got your info, BUT it is WRONG. I have flown 4 roundtrips on Southwest since 9-11 and it has taken me no longer than ususual. Southwest has a GREAT safety record and right now when everyone else is raising their fares, Southwest is still low. Furthermore Southwest is one of the only airlines to turn a significant profit in the last few years. THEY ARE NOT IN TROUBLE!

Southest may resemble a bus station with the way they board the plane,,,,,but...anyone that looks at Soutwest's financials (http://www.iflyswa.com/about_swa/fin...ons_index.html) <BR>will realize how incredibly strong they are. <BR> <BR>Fares drop dramatically whenever Southwest enters a market. <BR> <BR>They are also the easiest place to earn and to use Free REward Travel.

Either Kevin has an axe to grind with Southwest, works for a competitor or is totally misinformed. <BR> <BR>Hey Kevin, I got some swamp land to sell ya.

Yup, Adam IS pretty smart. He correctly had you pegged as working for a competitor. That is not a pretty shade of green you are wearing, Kevin.

Yeah? <BR>We'll see whose portfolio is 'wearing green' in 3 years. And whose is road rage red.

Kevin is probably some laid off airline employee who is bitter at a bunch of things including the success of another carrier. I say, put on a pair of khaki shorts and a smile and join 'em.

Kevin says "the majors" are best. <BR> <BR>Southwest IS a major, dimwit. They just do things a little differently. <BR> <BR>Southwest is the 4th largest carrier in terms of passenger boardings, larger that Continental, USAirways, etc. <BR> <BR>It's listed as a "great place to work" in many publications. Only Continental can share that distinction. <BR> <BR>Southwest has the lowest complaint rate with the Dept. of Transportation. <BR> <BR>So, Kevin, you have no idea what you're talking about. At worse, Southwest will reply less on short hops and more on longer-haul service. At best, they will clean up with the carcasses of other airlines...

Kevin, you want to debate the topic, fine, let's see some facts! Obviously, you can't produce any, so you have to flaunt your portfolio in our faces. Until you can learn to debate with the big boys and present actual facts--go somewhere else please!

Kevin, if you're such a braintrust then you'd be the one who knows that Southwest is the only airline stock you'd want to own. In fact, SWA stock has performed much better than the airline sector as a whole since September 11.

Backing up what I just said... <BR> <BR>- - - - - <BR> <BR>CHICAGO, Oct 10 (Reuters) - Merrill Lynch said analyst Michael Linenberg on Wednesday reiterated an ``accumulate/buy'' rating on Southwest Airlines Co. (NYSE:LUV - news). <BR> <BR>``In times of uncertainty, Southwest, unlike most of its competitors, has demonstrated an ability to generate profits,'' Linenberg said in a research note. <BR> <BR>``Also, and most importantly, is that Southwest's industry financial outperformance has typically coincided with a similar outperformance by its share price.'' <BR> <BR>Linenberg cited the No. 7 carrier's low-cost structure and strong company culture as reasons for its strong showing. The airline's shares have dropped since the Sept.11 hijacking attacks but not as much as other carriers'. <BR> <BR>Since the crash of four commercial jets into the World Trade Center, Pentagon and Pennsylvania, Southwest shares are off 11 percent, while some airlines' value has dropped by more than half. In early trading, they were down slightly at $15.10. <BR>

I stand by my orginal post! I do not work for the airlines nor was I laid off. I have no axe to grind. <BR> <BR>Here are the facts: The success of Southwest Airlines is based in large part to their ability to use each plane numerous times each day. This requires use of non hub airports and fast turn around of flights. Did you notice that Southwest does not fly into hubs like Atlanta, JFK, Minneapolis, OHare and other places with either terrible delays or weather. <BR> <BR>Once the airline security really wraps up and more people start flying and more flights are added, there will be significant delays caused by security forces going into planes before they take off to check for biological agents and sharp items, etc. There are alot of flights and limited number of security people so delays in checking out the planes before departure will occur. Because of these delays airlines, like Southwest, that have been successful because of previously fast turnarounds will be hurt because they will not be able to schedule as many flights per day per plane. Its true, logical and factual. <BR> <BR>I agree Southwest has a good balance sheet and rep now, but so did some other Airlines before 9/11/01. I fear for the future of commerical aviation.

Kevin, you're entitled to your opinion of course. But there is one question that hasn't been fully addressed: What has changed since Sept. 11 that would drastically affect Southwest's turn-around time on a long-term basis? <BR> <BR>My own view is that security is back to business-as-usual, pre-Sept. 11 levels, and most of the "security upgrades" were window-dressing anyway. Any long lines are due to understaffing at security and at check-in. <BR> <BR>So Southwest should do just fine. <BR>

Kevin - the reason SWA does not fly into O'hare is not that the weather is bad and causes too many delays. In case you didn't know, one of the main hubsw for SWA is Chicago-Midway. As it is the same city as O'hare , I assure as a Chicago resident, the weather is NO different there. Furthermore, I'm not sure what you are talking about when you say security people will actually go on each plane before every flight and search it causing delays. My husband who is federal law enforcement knows of no new initiatives that weren't already inplace or anything else that would hurt theur turnaround tiem other than the time it takes to get through security chckpoint at the airport. Please fill me in on where you got your info!

Ummm... except for Southwest Airlines, every major stock broker and analysist has advised AGAINST airline stocks for, oh, DECADES!!! <BR> <BR>Not since Howard Hughes owned PanAm (?) -- and showed the world that the richest man could make a "successful" airline company go bankrupt -- has anybody said "Whoopie, I gotz me summa'dat airline stock!" <BR> <BR>Isn't it amazing that financial experts tell us to have 3-6 months earnings in savings (uh, do you?) in case of emergencies, and the airlines claimed billions of loss and verge of collapse after less than one week? Makes me worry a lot about the financial stability of that industry.

Howard Hughes owned TWA.

Thanks; I knew it was SOME bankrupt airline! (PanAm went bankrupt in early 70s and out of business; TWA went bankrupt twice and is now owned by AA since spring/summer 2001.)

I hate to correct you again, Killjoy, but Pan Am flew until 1991 in its "original form." It was reincarnated as a Miami-based operation briefly in the mid 90s and is now a small mostly-charter airline offering sporadic service to small airports like Worcester and Gary, Indiana.

Well, there goes MY shot at being numero uno on "Who Wants to Be a Millionaire" and "The Weakest Link!" <BR> <BR>I'll just hope I make it as a contestant on "Price is Right." (That airline ticket is 4,000 dollars, Bob!)

Actually, I think you COULD make it onto the Weakest Link! <BR> <BR>Just kidding. :-)

Southwest doesn't fly into Dulles, JFK or Miami because those are expensive airports and it will make them charge more. That's okay, I'll fly from Baltimore to Ft. Lauderdale just to fly with Southwest. Sure, it's cramped, sure, they don't give us food, but it's cheap and cheerful. Delta is expensive and grumpy.

By the way, Southwest is basically operating the same schedule as before the attacks. They were the sole major carrier not to significantly reduce capacity. So, even with tighter security they are still operating like they were...on-time, safely (never a fatality in 30 years) and cheaply! <BR> <BR>Sounds like a pretty good outfit to me!

Kevin...did you notice how quickly the "big" airlines laid off employees after Sept 11?. Southwest didn't lay off anyone even when they weren't able to fly their normal schedule <BR> <BR>IF I remember correctly, I don't think Southwest has ever laid off an employee during slower periods. <BR> <BR>MAybe that's part of the reason that people like working at Southwest.