Friday, June 20, 2008

Luv Does Chicago

The Chicago Sun-Times has a quick roundup on a luncheon with Southwest Gary Kelley in which he discussed Southwest's future. Unlike most of the other carriers, Southwest is actually moving forward with a strategy rather than simply reacting to the latest jump in fuel prices. Of course, the article notes Southwest's fuel hedging that they claim will save them $2 billion this year. And it mentions Southwest's plans to add Internet and other entertainment options.

But, the speech's emphasis, the article notes, was about treating people well -- both the Southwest employee and customer. Personally, sometimes I find the "cheer" a bit over the top, but these days Southwest is one of the few places you will find people smiling. Setting aside financials and route structure, the comparison really tells you why Southwest is on its way up and US Airways is stuck at the bottom. While waiting for my 3rd US Airways flight of the day to be cancelled earlier this week, I overheard another gate agent announce that, due to a computer glitch, they were going to board alphabetically. Apparently, a passenger or two made a joke about it and it was only a matter of seconds before the gate agent was back on the microphone berating the passengers for improper behavior. It was really quite shocking.

I'm sure the Republic Airways employees that were actually flying the plane were cheerful, but I doubt anyone on that plane got beyond the behavior of the US Airways gate agent. These days the stock prices on the Yahoo chart to the right react solely on the rise and fall of crude oil. But, it is important to remember that, once this all settles down, there are factors, such as service, that do matter.

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