Southwest to ease off the throttle
After record-breaking double digit growth in one of Orlando's #1 airlines, Southwest has announced it will be reducing it's flights in the first quarter of 2009. Dozens of fligts to Orlando International will be slashed by the Dallas based airlines said Bill Owen.
Out of 115 flights from Orlando last year, this represents a reduction of 11% for the first quarter. These adjustments in scheduling based on demand in Orlando that are coming on the heals of a resession are historic to say the least.
Being able to increase capacity in the summer and reduce the number of flights in the winter gives the airlines some flexibility. During times of volatile fuel prices and slumping economy, this is called optimization. Could there be some layoffs and how do they manage the workforce?
The philosophy of dropping markets, reducing flights, adding flights, is typical for all the airlines that operate between hubs. For Southwest, its a bigger challenge because their volume of flights is typically between cities.
Some of the deepest cuts in aviation history due to fuel prices and volatile markets are being made not just by Southwest, but by all the major airlines. Orlando will especially feel the squeeze to to its seasonal leisure travelers and because Southwest has major oportunities between Orlando OIA & Los Angeles International Airport.
Where the legacy airlines Southwest has cut back on what it calls unprofitable markets, other airlines such as Jet Blue Airways Corp., AirTran Holdings Inc., and Brazilian TMA, believe that these markets will be profitable for them.
Out of 115 flights from Orlando last year, this represents a reduction of 11% for the first quarter. These adjustments in scheduling based on demand in Orlando that are coming on the heals of a resession are historic to say the least.
Being able to increase capacity in the summer and reduce the number of flights in the winter gives the airlines some flexibility. During times of volatile fuel prices and slumping economy, this is called optimization. Could there be some layoffs and how do they manage the workforce?
The philosophy of dropping markets, reducing flights, adding flights, is typical for all the airlines that operate between hubs. For Southwest, its a bigger challenge because their volume of flights is typically between cities.
Some of the deepest cuts in aviation history due to fuel prices and volatile markets are being made not just by Southwest, but by all the major airlines. Orlando will especially feel the squeeze to to its seasonal leisure travelers and because Southwest has major oportunities between Orlando OIA & Los Angeles International Airport.
Where the legacy airlines Southwest has cut back on what it calls unprofitable markets, other airlines such as Jet Blue Airways Corp., AirTran Holdings Inc., and Brazilian TMA, believe that these markets will be profitable for them.
posted by michael at
8:49 AM
