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Re: Saturday, December 4, 2004
Al Ries is missing some important facts about Southwest's success: they *do* serve vacation destinations (Orlando, New Orleans, Las Vegas, South Padre Island, and others), and they do carry air cargo (check out http://www.swacargo.com). They operate a single aircraft type, which saves them big bucks on maintenance and operations-- but more importantly, it means they have a single, unified pay scale for pilots. Delta, American, et al pay pilots according to seniority *and* the type of aircraft they fly, so that a 777 pilot makes much more than a 737 pilot with equal experience. This FiTi article from 1999 (http://www.insead.fr/mauborgne/newspprarticles/FT/FT130599.htm) points out the real secrets to Southwest's success: eliminating hubs, limited amenities, and (best of all) focusing on what makes people fly in the first place: saving time.
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