Southwest Airlines Act II - An Airline in Trouble? |
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"The challenges in the future are us." -Gary Kelly, CEO of Southwest Airlines, in 20041. "It's worth asking whether Southwest is finally facing the same issues and challenges that legacy carriers have experienced for some time. We believe there is a risk that as a generational change occurs and the oldest Southwest employees retire (who remember the early years of struggle), the company's low-cost culture will change." -William Greene, an analyst at Morgan Stanley, in 20042. CEO Resigns
He also said that he had great hopes on Kelly, under whose guidance Southwest had achieved the strongest balance sheet in the US airline industry. Both Parker and Southwest, maintained that the resignation was due to personal reasons. Parker said that the job was too 'draining' for him and that he did not feel he could cope with it any more. "Sometimes you feel like you've given all you can give," he said.4
"You would certainly think that the troubles he's had with the unions may have led to his departure," said Bill Warlick, a senior airline analyst at Fitch Ratings in Chicago.5 Southwest Airlines Act II - An Airline in Trouble? - Next Page>>
1] Loren Steffy, "Enter the bean counter as
Southwest's costs grow", The Houston Chronicle, July 23, 2004. |
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