I love the story of how Southwest Airlines started out
thinking in opposites and shifting dimensions to deliver an outstanding value
compared to the incumbents. But 47 years
later, their air fares are no longer such a bargain (compared to other
airlines) as they have evolved from newcomer to dominant force.
After 9/11, Government intervened with time-consuming TSA security
screening which has added substantial time for the Southwest trip. When you factor in the time required to check
in, go through security, check and retrieve your luggage, not to mention the 55
minute flight time, it eats up about 3 hours on a trip from Dallas to Austin. (One can obviously save time by not checking
luggage and paying a premium for some of Southwest express business options.)
Southwest started by serving the largest three cities in
Texas (Houston, Dallas & San Antonio).
They were the outsider and driven by a mission to provide great service
at a low price. Early on they considered
the bus lines more significant competition than the other airlines because
their fares were so low.
Southwest made it. In
fact they made it Big and as of today they have over 44,000 employees and 3,400
flights a day. And here is where life
comes full circle. In the same Texas tri-city
area (Dallas/Houston/San Antonio) that fostered Southwest, a new entrant might
very well eat Southwest’s lunch in the same way Southwest caused havoc with the
existing players when they entered the market. The irony is the new entrant is a bus company.
The start-up is Vonlane and they drive a much more luxurious
bus than the Greyhound your father used to ride. It includes WiFi, satellite television
and radio, free luggage, free refreshments, complimentary newspapers, a closet
for their attendant to hang your coat or jacket, no middle seats, 110v
electrical outlets throughout and best of all plenty of room with first class
seats. All of this for only $100 each
way.
A private six seat conference room at the back of the bus is
also available for $600 per trip. You
can rent a regular seat only, the conference room only or some combination of
regular seats and the conference room.
Last Week (May 5) Vonlane began their inaugural service
between Dallas and Austin. They soon
hope to add other routes between Dallas, Houston, San Antonio and Austin.
There is no time wasted waiting in lines – you can arrive
five minutes before takeoff. And
virtually the entire trip can be used productively on work, play or sleep in
the same 3 hours that it takes to make the Southwest trip.
By the way, I checked the Southwest Dallas to Austin Southwest
airfare a few minutes ago for a flight later today and the lowest fare was $201
and that does not include parking.
Ain’t competition great
(at least for the customer).
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