Monthly Archives: November 2007

Additional Changes at Southwest

One of the biggest changes announced today is this one.  If you are a heavy-use business traveler that flies Southwest, that is, if you fly 32 one-way trips in one year, you will get the best available boarding pass available when you book any fare. In other words, if there are already the maximum number of “A” group boarders when you check in, you’ll get an automatic “B” or whatever. But the assumption is that you will get an “A” group assignment more often than not. Whether you are flying on a Business Select fare or not.

Ticker: (LUV:NYSE)

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Southwest Unrolls Changes To Fares and Products Offered

Southwest Airlines Cabin-1

Southwest Airlines just unveiled its new changes in a webcast press conference.

The airline is changing its fare products. Business Select, Business, and Wanna Get Away. Within the Wanna Get Away fares are other fare breakdown classifications.

Business Select fares will be higher than the highest fares the airline has charged in the past. The amount will vary depending upon the flight.

The airline says for now about 10% of its seats will be available on that basis.

Business Select fliers will get more Rapid Reward credit, get “A” boarding, and a free drink.

Business class fares as essentially the same as the previous full fare refundable ticket.

Another change in the Rapid Rewards program — if you want a Rapid Rewards ticket that is good on any flight, for the exception of the usual holiday periods  (how it used to be), you have to turn in two regular Rapid Rewards tickets and pay $50.

Remember that the airline changed its Rapid Rewards program a couple of years ago to a “capacity controlled” system like other airlines.

So essentially, this is going back to what the program used to offer — at a higher cost.

The press conference is still ongoing at this point.

Southwest Airlines’ CEO Gary Kelly says that the airline expects the changes to bring the airline $100 million in additional yearly revenues.

Ticker: (LUV:NYSE)

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Southwest Airlines Schedules News Conference for Tomorrow

Southwest Airlines Cabin

Sounds like Southwest Airlines is getting ready to unroll more secrets from its “customer experience improvement” bag ‘o tricks tomorrow.

And I quote, “Join Southwest Airlines CEO Gary Kelly tomorrow to discuss additional product changes that transition Southwest from a-one-size-fits all airline to the airline that fits our Customers’ lives.”

Can’t wait. Wonder if Gary will exhibit any residual effects from his recent encounter as Edna.

The conference, which is being held at the airline’s headquarters will begin at 11 AM CST. It is being webcast.

Ticker (LUV:NYSE)

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Oil Hits Yet Another New High

050306Oilbarrels200-20

Attired comfortably in my Ratty Old Bear Suit, I am perfectly calm and collected as I say this.

What does the market expect is going to happen when the Fed cuts interest rates again — in an effort to bail out the growing mortgage debt/banking mess? That’s right. The dollar is going to drop further, and the price of oil is going to go even higher.

Be careful what you wish for is what I say.

Today, a barrel of crude closed at $96.70 — another new record. At one point, it was trading as high as $97.10.

September DOT Numbers Improve: No Surprise; Complaints Rise

Why should the western world be surprised when on-time numbers improve in September — as opposed to July?

I don’t know. But the improved on-time average for the group is certainly getting a lot of press today. As we all know, when the skies are not as crowded with flights — operations tend to function better.

September was no exception.

However, I would point out that while on-time stats month-over-month were much better,  and baggage stats for the group year-over-year improved — year-over-year complaints did not.

For the group, complaints were up 41%. The airline to post the largest percentage gain in complaints? Comair. The airline that posted the biggest reduction in complaints? Hawaiian. The major domestic airline that posted the lowest absolute percentage of complaints? (This does not count those hot shots in Hawaii) — Southwest Airlines. The overall top winner here, with zero complaints filed — Aloha.



Our congrats to the employees at all four airlines.



On the other side of the chart, who was the major domestic airline that posted the largest absolute percentage of complaints? US Airways.

Interesting to note that this month Delta Air Lines almost snatched that less-then-honorable title right out from the nose of US Airways. Delta posted one of the worst months for complaints it has posted in a long time, posting just a hair fewer complaints than did US Airways.

Sitting on top of Delta, in terms of bad complaint numbers were Comair and Atlantic Southeast, so Delta scored a rather undesirable trifecta there this month.

United Airlines, which hasn’t been posting very positive complaint numbers the last few months either, was tied with Atlantic Southeast (a rather nebulous honor, to say the least).

Ticker: (DAL:NYSE), (UAUA:Nasdaq), (LCC:NYSE), (HA:AMEX), (LUV:NYSE)

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Murnane’s Official Termination Notice; Will He Remain a Principal in Other Mesa-Related Companies?

180Px-Mesa Logo

In case you missed it, Mesa announced Monday that Peter Murnane had been relieved of his CFO duties.

Mesa named William Hoke, its vice president of finance, as interim chief financial officer.

I don’t think Mesa had much choice in this matter. After U.S. Bankruptcy Judge Faris’ rulings (both the one directed towards Peter’s destruction of evidence and the ruling against Mesa in terms of damages in the Hawaiian case) there was a big problem of having an officer of the company still on the payroll who had been directly involved in these actions.

Not something the SEC looks favorably towards. Nor, you would think, would shareholders.

According to the Arizona Republic, Mesa attorney Brian Gillman, said Monday that Murnane will not receive severance because his employment contract, which wasn’t due to expire until 2010, says there will be no severance if he was fired for cause.

What has not been disclosed however, is whether Murnane and Ornstein will sever their other mutual business interests. Both are involved in a number of business entities, besides Mesa, which were outlined in the airline’s 2006 annual report.  These “subsidiary” companies include Nilchii, Patar, Ping Shan, MAGI Insurance and Ritz Hotel Management.

Ticker: (HA:AMEX), (MESA:Nasdaq)

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Where was Holly on Monday?

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You know the famous part of “Little Shop of Horrors” when Steve Martin, aka Orin Scrivello,DDS, has his little scene? Yes, well I that’s where I was, figuratively speaking, yesterday.

The day began innocently enough. Another trip over to my Dad’s house to continue the cleaning out of my Mom’s stuff. My mother never threw out anything. Ever. Now we get to do the honors.

Then, it was a trip to the dentist, where I was to get a permanent crown. (All the ugly stuff having been done weeks ago.)

So here I am in the dentist’s chair, with no novocain, looking at the birds in the bird feeder outside one minute, and the next minute I have a hand with the biggest hemostat I’ve ever seen trying to yank out what is now a firmly cemented crown out of my mouth.

Yes, it appears that for whatever reason, he cemented the tooth — but it was not “seated right.” When this was then discovered, it became something akin to a scene out of “ER” with him barking orders to not one, but now two assistants, followed by his cramming some kind of blue stuff onto the tooth, after which he then took the aforementioned hemostat and began to ….pull.

And pull.

And pull.

After the third attempt at this routine, I, who could not speak for the various implements and suction tubes in my mouth, finally just started to make noise. Lots of it. At which point he said, “Oh well, I don’t want to hurt her. Numb her up.”

Lovely.

So after being “numbed up,” then I got to experience something new. A dentist “cutting off” a newly cemented crown. Actually it involved cutting, digging, and well, you know, at that point, I think my hands had created permanent creases in the arm rest of the chair.

With pieces of porcelain flying around (the assistant advised me to close my eyes), yep, all I could think of was Steve Martin.

Which, all things considered, was probably not as good as trying to think of cool waters in a babbling brook. Or any of those other supposed “calming” visions one is supposed to try and think of during such an event.

Today? Sore jaw and a growing reluctance to ever set foot in a dentist’s office again.

Earnings, Earnings, and More Earnings

Whew. The LSU/Alabama just came on the television. That’s cutting it close. 😉

Another mega-earnings week this week for PBB subscribers. If there is one earnings call review you read, make it the Allegiant Travel review. Allegiant Travel is the parent of Allegiant Air.



These guys have figured out a new niche, while everybody else has been out there chasing the elusive LCC/Southwest model for the last 15 years.

And it’s a niche that just keeps making money. Good times, bad times. Low fuel, high fuel.

Very impressive quarter for the folks out in Las Vegas.

An Open Request to Jeff Pinneo and Bill Ayer; PBB Posting Update

Ah, boys, do you think you could cut down the length of your earnings call next quarter?

Sheesh.

Yours truly here. Slogging through the Alaska Air Group earnings call review for this week’s PBB. When I saw the size of the audio file I knew it was long. But, well…..then I pulled the transcript earlier today. It was 27 pages.

Anyway, no way this issue is going to be ready for a final edit before the clock strikes twelve. I don’t care what time zone you’re in.

Mea culpa.

PlaneBusiness Banter  will be posted tomorrow. Promise. It has to be. LSU plays ‘Bama tomorrow afternoon.

Talk to you then.