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Politics : Formerly About Advanced Micro Devices
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To: Tenchusatsu who wrote (397455)7/10/2008 12:08:27 AM
From: i-node   of 1575771
 
How come Southwest is able to consistently turn a profit?

They are one of only a couple of airlines that are consistently profitable. The industry, as a whole, has never been profitable since the outset -- even with the massive subsidies received from the federal govt. The problem is that the industry is both capital and labor intensive -- huge capex coupled with aggressive unions is a recipe for disaster.

SW, at this time, is benefiting from having made a very smart purchase of jet fuel contracts several years ago. This has them running over the competition today. But they have always been well-managed. I used to fly them a lot between Dallas and Houston for day trips, and they kicked butt to keep them on time. I've had them push out of the gate before passengers were seated. Contrast with Delta from last weekend, where we sat in the gate for a good 15 minutes after everyone was buckled in.

We fly SW whenever possible. Last weekend, we were unfortunate enough to fly Delta -- and it was an absolute nightmare -- the first leg of the flight was late, which put us missing a connecting flight out of Atlanta. The later flights were booked (overbooked), and Delta personnel were absolute jerks about the entire thing. I don't know that I'd ever fly with them again, for any reason.
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