tonyw
Well-Known Member
I've been saying for a long time that it's stupid for airlines to continue to slash fares to a point where they lose money on every sale in order to fill seats.
I've heard oh, but you don't understand revenue management. My response has been, uh, well, if you've got a system that causes you to file for chapter 11 time and again, maybe the system isn't working.
Now it seems like someone else who's got a pretty good track record at evaluating management decisions is on board with my way of thinking.
http://quicktake.morningstar.com/StockNet/MorningstarAnalysis.aspx?Symbol=LUV&Country=USA
Given that offering bargain fares has resulted in a razor-thin profit in the quarter and a cumulative net loss during the first half of 2009, we think Southwest's decision to continue offering drastic ticket sales to stimulate demand is the wrong approach.
I've heard oh, but you don't understand revenue management. My response has been, uh, well, if you've got a system that causes you to file for chapter 11 time and again, maybe the system isn't working.
Now it seems like someone else who's got a pretty good track record at evaluating management decisions is on board with my way of thinking.
http://quicktake.morningstar.com/StockNet/MorningstarAnalysis.aspx?Symbol=LUV&Country=USA
Given that offering bargain fares has resulted in a razor-thin profit in the quarter and a cumulative net loss during the first half of 2009, we think Southwest's decision to continue offering drastic ticket sales to stimulate demand is the wrong approach.