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Southwest Closes Four Stations Amid Ongoing Boeing Delivery Woes

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The airline lost $231 million in the first quarter of 2024. (airlinegeeks.com) Más...

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Propwash122
Peter Fuller 6
Sub-headline “The airline lost $231 million in the first quarter of 2024” should lead to some analysis in the article of factors causing the loss. But…nothing, nada….not great journalism. Sorry I wasted time reading it.
btweston
btweston 1
Thanks for sharing. But I think it might be due to the fact that they don’t have enough planes.
Propwash122
Peter Fuller 9
I think Southwest’s loss happened not because they don’t have enough planes, but because operating the planes they do have didn’t generate enough revenue to cover their costs.

Adding more airplanes to their fleet wouldn’t magically solve the structural problem of costs exceeding revenue.
PgRamsey
Perry Ramsey 5
Yeah, not much journalism there, just regurgitation of the corporate press release, which was itself full of nonsense.

If they are losing money on each flight, more planes would just help them lose money even faster. If they're just losing money on these routes, then the justification should be that these routes weren't paying off, so we're re-deploying those assets to more profitable ones. The fact that the press release tries to blame it on Boeing says there's something else and they're trying to deflect attention from what's really going on.
watkinssusan
if you have been in and around the airline industry for a few years,you have seen the ins and outs,the growths,diappearance and mergers of various carriers from small ones to large ones,and you have an understanding of the economics involved..southwest was founded in the 70's,as a sort of "folksy" carrier,who was to fly within the state of texas..they expanded with government approval, but kept their home base of operations at love field in dallas even with dfw coming along and due to government regulations...later on the management made decisions to compete with the "big boys",and still try to advertise as the "cheap fare carrier" with "luv"..it served their purposes for employees and maintenance to maintain a fleet of only on type of aircraft..the issue with boeing has affected them probably just a bit more than some other airlines..as far as pulling out of a few "stations",houston for example,several years back they tried serving customers at both iah and hou,and after a few years,they went back to hou for all flights,and also did massive renovations with the city of houston, to the terminal and baggage areas..well,as fate would have it, a few years ago they tried both hou and iah again,and were doing ok iah-dal (not dfw),as that service is very limited (if at all)..the announcement to cut that service,as well as some other mayabe less profitable routes,most certainly is due to the boeing issue as the southwest fleet of 737's are aging,and they need to tighten their belts and consolidate route structure with the planes and people they have..rest assured they are either offering buyouts or moves to available airports for affected employees at the ones they are leaving..by the way, the term "station" has been used for years rather than airport,and even employees of carriers refer where they work as "my base station is"...particularly flight crews..
snow
James Cox 2
That must be a southwest thing, I've never heard a flight crew refer to their base as "my base station"
dkenna
dkenna 3
At the regionals, we called them out stations. Smaller towns subsidized by EAS where you prayed nothing broke because being stuck out there usually meant waiting until the next day before parts would even arrive. But, wherever you were “based” out of wasn’t considered a station, just home base. I left the airlines years ago, so it may have changed…

[This comment has been downvoted. Show anyway.]

togojjh70
J H 6
Kindness makes the world a better place. From complimenting someone else to making them smile to doing something nice for someone, kindness leads to happiness, not just for other people, but for yourself as well. If I may make a suggestion? Be kind or at least constructive.
watkinssusan
with all due respect..you didnt have to read it if you were not interested..sorry that the information i happen to know seemed to have irritated you..enjoy your day..!
ukusa
I loved it, and it was very interesting
dann403aln
Dan Nelson 7
Any business that relies on one vendor for anything is just asking for trouble in these times.
bchandl13
Brian Chandler 14
The issue isn't so much one vendor. The issue is they tied themselves to one product, from one vendor.

Spirit is paying the same price. They have a ton of P&W powered A321s grounded awaiting either new engines or engine parts that are unavailable. Hawaiian too, plus many Euro carriers.
paultrubits
paul trubits 4
I am out visiting in Goodyear. There are at least 6 Spirit aircraft parked at the boneyard minus engines
paultrubits
paul trubits 2
Update: just drove by the airport and there at least 12 Spirit jets parked there
mattwestuk
Matt West 10
As Alaska found out much to their chagrin earlier this year...right after they retired their last A321s. Single craft fleets might look good on paper, but when something happens to that type, things unravel quickly.
sparkie624
sparkie624 5
That is true... There Primary Vendors is Boeing and GE - That does not generate too much competition.
aurodoc
aurodoc 4
Absolutely true!!, but the reason it's done is cost. One type of pilot training and certification and lowered maintenance costs with one aircraft but the risk is they have you by the short hairs since you have little recourse to change. We have this issue in the medical field with electronic medical records. There are 2 vendors, EPIC and Cerner. Once you sign up with one they can do unwanted upgrades, create unwanted features and once you are dependent on your vendor, it is impossible to change to another(EPIC to Cerner)due to costs and inability to transfer records between vendors.
btweston
btweston 4
Yep. When the goal is cutting costs you pay for it somehow.
speedbird9
Marty Martino 2
At the risk of stating the obvious, with the consumer baring the brunt of it.
bjd4133
James Day 4
The management chain from McDonnell Douglas destroys another company. When will American Corporations learn that working to the next quarter and the golden parachutes for the CEO and board members will only end a company. Boeing just did not pay any attention to the controlling interest of the stock exchange in 1997 and losing business focus on quality engineering and commitment to their customers.
gmalnati
gmalnati 3
I’m not sure why they serve two airports in Houston and Chicago, especially since IAH and ORD are large hubs for United. ATL is tough with Delta’s overwhelming dominance. They pulled out of Newark before they had issues with Boeing. While I’m sure aircraft deliveries have impacted financials, some of these actions may have been taken more in response to poor performance in these markets. The headline makes it seem like the Boeing issue caused the closings.
bchandl13
Brian Chandler 2
Simple. They're out of capacity to grow at HOU and MDW, and their solution is to offer Point to Point flying from ORD and IAH and funnel connections through their hubs at HOU and MDW. I flew MCO-IAH on WN last year and it was great because my ultimate destination was in NW Houston, 15 min from IAH vs 60+ from HOU.

They will leave IAH for now, but they will be back in the years to come, and they will probably find themselves at DFW in the near future too. There's no growth to be had at HOU, DAL or MDW, the 3 most important hubs/stations to WN are at capacity and not going to expand. If they want to continue to grow at any of their mid-continent hubs they will have to look elsewhere.
briansfreeman
Brian Freeman 1
I hope they return to BLI very soon. One of the best airports and overall areas to fly in to.
dkenna
dkenna 1
I have no sympathy for Southwest. Karma for killing high speed rail to Texas and 10’s of thousands of jobs. Just another once great company that has failed it’s customers time and time again.
PgRamsey
Perry Ramsey 1
Explain to me how something that has to pay for "10s of thousands of jobs" can financially compete against what we have now. If you guess that the cost of each of these workers is $100 thousand per year (the whole cost: medical, pensions, disability, etc. etc.) that's $1 billion a year at the low end. Just to pay the staff. Could be $2 billion or $4 billion or $9 billion and still be under the "10s of thousands of jobs"

Southwest is flying roughly 20 flights a day, for roughly $300 round trip, each flight carrying somewhat fewer than 200 passengers, so that's $1.2 million a day, or $450 million a year in revenue. Out of that they're paying for everything: infrastructure, staffing, equipment, advertising.

So educate me how that works.
dkenna
dkenna 4
Just the amount of jobs you’d create to build the infrastructure needed would generate billions in tax revenue across Texas alone, nevermind the country as a whole.

I’m not saying the rail company needs to employee 10s of thousands, unless the need for that many was evident. I’m talking about building the infrastructure as well as hiring the rail employees. Think of the scale of the project. It would require years to build, yes, but that’s standard practice in the US. I find it odd so many people object to the idea of HS rail.
BillOverdue
Bill Overdue 2
I'm with you on HS rail! But it'll take private enterprise to do it! Look at Amtrak and USPS, great examples of gov'mint failures on the taxpayers dime! Year after year, billions upon billions up in smoke on asanine federal entities! Might as well burn cash in a furnace! It'll take a "Elon Musk type" or a group of investors to get it done! I've seen China, Japan and Eastern Europe rail systems. Some better than others, but all serve a purpose!
dkenna
dkenna 3
Woah, we agree on something Bill?? This could be the start of something beautiful…
BillOverdue
Bill Overdue 1
Something about hands on a clock ... come to mind?
bchandl13
Brian Chandler -1
lmao if an idea (hs rail) can't compete against a single alternative it's not a real idea.
dkenna
dkenna 4
Umm, that makes absolutely no sense. An idea isn’t an idea? Educate yourself on the topic, then put in your two cents.
bchandl13
Brian Chandler -1
Let me rephrase for the slow ones: If your transportation idea isn't competitive against a single other method (flying) then it's not a good idea.
dkenna
dkenna 3
And let me simplify for you. Southwest make sure no competition! They spent huge sums for lobbyists and buying off politicians. If you argue that having multiple methods of transportation, especially a system to connect major cities in less time than it would to fly, for half the price, is somehow a bad thing, then your ignorance is beyond me. You enjoy long lines, TSA, overbooked flights? Southwest killed competition; and it still is struggling. But yeah, follow them till the end! Don’t allow another industry come in and offer a choice to the people…
ridersofthestorm
Don’t they have aircraft in storage they can use to tide them over?
feote
Ken Jackson -5
At what point did an “airport” become a “station”?
bchandl13
Brian Chandler 6
A long time ago. The same way busy, connecting airports are hubs and not airports. Stations are just airline lingo for airports that only have O/D pax and not connecting flights. It's widely used. Also, "southwest closes four airports" would be a terrible headline
punkrawk78
Silent Bob 3
SWA refers to its airport operations as “stations”, so the wording is correct. Yes you could also say they are terminating operations or leaving those airports as well, but it’s nice to see accuracy in media.
KennyFlys
Ken Lane 1
Perhaps "Destinations" would be the better choice.

That said, I had no clue Bellingham had become that much of a desired destination. I went up there often while stationed at Whidbey Island. I thought it was merely a larger town. I suppose it has grown a bit.
eurekaiv
Jay C 4
It's my understanding that Bellingham is also used by Canadian travelers crossing the border for cheaper domestic flights within the US. Tijuana is used similarly by US travelers heading into Mexico.
paultrubits
paul trubits 1
Same with KBUF for Southern Ontario residents heading to locations in the USA
bchandl13
Brian Chandler 3
Bellingham isn't a "destination" it's an airport a few miles from the canadian border that Canadians would cross and then avoid paying outlandish Canadian taxes and airfare rates and not have to deal with airport customs.
KennyFlys
Ken Lane 1
For passengers, probably not. In terms of points an airline flies to, it is.

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