Last month Business Week ran a three part interview (Part One, Part Two, Part Three).Interesting, fun read, mostly for the reminiscences. One quibble that I have, though, is that Kelleher boasts about Southwest’s employee stock ownership plan but it’s my understanding that he was initially vigorously opposed to its creation.There’s nothing inherently inconsistent about that. It’s wonderful when a manager admits their error and becomes a champion of a successful idea. But Kelleher isn’t the most humble of men. And though he notes the timeline of taking of the reigns of Southwest Airlines in 1982, he never mentions the names of any of the other founders.
Yearly Archives
Yearly Archives for 2004.
Worldwide airline industry recovery
A current feature in Air Transport World predicts significant recovery for the airline industry in 2004, with worldwide net profit of $3.2. The driving factors will be stronger economic growth and lower fuel costs, offsetting lower yields resulting from expanding low cost carriers.
Elite changes and what they mean for first class upgrades
I’m not usually a fan of the First Class Flyer website. I find it rather schmaltzy. But they currently have a good roundup of elite level changes for 2004 across the major airlines (none of which should be news to readers of this blog, but it’s a good summary nonetheless).
Help remind me of something?
Northwest will offer daily Tokyo-Portland flights beginning in June.Back when Delta offered this service, Portland had a terrible reputation amongst Japanese for hostile a immigration authority. It had a rather funny nickname as well, but I can’t seem to remember what it was. Perhaps someone out there can remind me?
Exploring poor business strategy at USAirways
The New York Times reports that USAirways is considering selling assets, including the DC-New York-Boston Shuttle.While discussions appear preliminary, and the existence of discussions shouldn’t be overread, this seems ill-advised.Selling assets will raise cash but do little to affect the underlying profitability of the enterprise. It’s likely that the only assets which will bring real cash are also the ones that are the most profitable or most likely to become profitable.Sometimes it does make sense for a business to sell off productive assets — either because the business underutilizes those assets and they’re worth more to another business (and hence will fetch more cash in a sale than profits to the original owner) or because the business believes that they can invest the cash more productively in other enterprises.In this case, it seems more like…
The first tax offer appears
I always procrastinate on my taxes — not out of anger at writing a check to the IRS (though I feel some) or a desire to put off unpleasantness (though I feel that too) — but because I want to wait for the best mileage offers to appear. Several credit cards will offer bonuses for making tax payments with their card. These bonuses tend to offset the processing fee for paying taxes by credit card. I want to get the best bonus possible. Two years ago I took advantage of a United Visa offer of 5000 miles for any tax payment (I paid $5 online and the rest with a check). Last year I earned double Starwood points for my online tax payment. I haven’t heard what the credit card offers are yet — they…
JetBlue’s Growth
JetBlue will begin daily flights between New York Kennedy and Sacramento, California on March 3rd. There is currently no non-stop service between those two airports.Sacramento is JetBlue’s fifth California city, joining Long Beach, Oakland, San Diego and Ontario.JetBlue’s strategy remains to grow with transcontinental flights, where their unique niche matters to customers. They offer DirectTV and leather seats, which customers prefer on long flights (at least price being equal). On short flights, this edge doesn’t shift customer decision-making.Expect JetBlue to continue raiding long haul bread and butter routes of the major carriers and avoiding short haul expansion, especially where they would face head to head competition from other low cost carriers.Update: Far from resting on their laurels, JetBlue will be adding XM satellite radio. Airtran, which currently offers no in-flight entertainment (but does boast a…
Why does the European Union keep airline safety records secret?
The BBC reports that unsafe airlines, even those banned from flying to member countries, have their identities concealed from the public. Five airlines which have such poor safety records they have been banned in at least one country are having their identities kept secret in an information black hole. Passengers boarding the Flash plane did not know Swiss record Flash Airlines, whose plane crashed in Egypt on Saturday, was only one of six airlines whose safety standards were considered so poor they were banned or restricted in a European country in 2002. But 133 French passengers boarded the doomed jet unaware that it had failed a Swiss safety test and remained banned from Swiss airspace. And future passengers who want to know the names of the five other banned airlines face a seemingly impossible task,…
New mileage earning — and burning — opportunity
United and Sony are partnering on a new music download site that will allow customers to earn miles for their purchases and redeem miles for music.The website is expected to launch in the Spring.
Freddie Awards date and location tentatively announced
Rumor (well, tentative scheduling) is that the Freddie Awards will be held April 29th at the Embassy Suites New York.Since I won a four night stay at the Wydnham El Conquistador last year as a door prize — not to mention the event was fabulous — I will have to make the trip again.The current lowest rate for the hotel is $303 pre-paid on the website. Last year there was a negotiated rate for the event. As insurance I’m holding an award night.
