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What I did on my summer vacation, or . . .
Choose based on schedule, then price . . .
As longs as they have confidence in

           Reliability
         Convenience
          Appearance
2010 . . .
 Best metrics (DOT,D:0, MBR & A:14) since merger
 Maintence metrics (CF, NEF, MEL) since certificate
  merger
 A la carte revenue up 21% YOY to %514M
2011 Goals
 Revenue: Maximize value of existing assests (hubs)
 Ops:     Position to be industry leader in operating
       reliability
 Costs:      Widen CASM advantage
 People:     Engage employees on
       strategy/positioning/objectives
 Strategic: Control our destiny through sustained
       profitability better than peers
2011 Operational Goals

 D:00            69%
 A:14            81%
 CF              99%
 MBR             2.44
 DOT Customer Complaints: 5% better than 2011
  average of Network Carriers
Other interesting things . . .
 Revenue management:
 Overbookings: Sold seats vs. “spoiled” seats
   Highly complex process using cutting edge methods
   Considers historical data AND individual PNR
 25 millions fares at any given time system wide
 Fares updated 3X day
 Customer behavior has changed significantly in
 recent years.
   Walk-up, last minute purchases
 Why we don’t advertise . . .
 We do, sort of . . .
 Travel Agents (brick & mortar and on-line)
 Word search on Internet
 Costs per ticket range from a few cents to $15.00
 Southwest Airlines: They HAVE to advertise. They
 have to direct people to their website. Only place you
 can by a ticket.
This is all mildly
interesting, so what?

How does this apply to
me and the GOS
Section???
How do we contribute?
         Revenue?
         Operation?
         Costs?
         People?
         Strategic?

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My experience at leadership foundations this week

  • 1. What I did on my summer vacation, or . . .
  • 2. Choose based on schedule, then price . . .
  • 3. As longs as they have confidence in Reliability Convenience Appearance
  • 4. 2010 . . .  Best metrics (DOT,D:0, MBR & A:14) since merger  Maintence metrics (CF, NEF, MEL) since certificate merger  A la carte revenue up 21% YOY to %514M
  • 5. 2011 Goals  Revenue: Maximize value of existing assests (hubs)  Ops: Position to be industry leader in operating reliability  Costs: Widen CASM advantage  People: Engage employees on strategy/positioning/objectives  Strategic: Control our destiny through sustained profitability better than peers
  • 6. 2011 Operational Goals  D:00 69%  A:14 81%  CF 99%  MBR 2.44  DOT Customer Complaints: 5% better than 2011 average of Network Carriers
  • 7. Other interesting things . . .  Revenue management:  Overbookings: Sold seats vs. “spoiled” seats  Highly complex process using cutting edge methods  Considers historical data AND individual PNR  25 millions fares at any given time system wide  Fares updated 3X day  Customer behavior has changed significantly in recent years.  Walk-up, last minute purchases
  • 8.  Why we don’t advertise . . .  We do, sort of . . .  Travel Agents (brick & mortar and on-line)  Word search on Internet  Costs per ticket range from a few cents to $15.00  Southwest Airlines: They HAVE to advertise. They have to direct people to their website. Only place you can by a ticket.
  • 9. This is all mildly interesting, so what? How does this apply to me and the GOS Section???
  • 10. How do we contribute?  Revenue?  Operation?  Costs?  People?  Strategic?