Gee what a surprise! A Seattle sourced news article praising a Boeing product. Who would have thought it!?!?! And look! They have a link to www.boeing.com Grant SYD QF Roger & Amanda La France wrote: > The Secret Behind High Profits at Low-fare Airlines > > A Majority Fly the Boeing 737 Exclusively > > SEATTLE, June 18 /PRNewswire-FirstCall/ -- It's no secret that the travel > industry has been struggling lately. But one segment continues to do well > -- the low-fare airlines such as Southwest Airlines in the United States, > Ryanair and easyJet in Europe, WestJet in Canada, GOL Airlines in Brazil and > Virgin Blue in Australia. > What's their secret? > One major contributor to their success is that they fly only one airplane > model in their fleets. Thus, pilots and mechanics need to be trained on only > one kind of airplane. Having a single airplane model in a fleet also lowers > inventory, record keeping and maintenance costs, and it minimizes the number > of technical manuals, tools and spare parts. Also, fleet management is > greatly simplified. > "What happens if you have mechanical irregularities?" said Herb Kelleher, > chairman of the board of Southwest Airlines. "With only one model airplane in > your fleet, you can substitute one for the other." > The first airline to adopt this one-model-fleet tactic was > Southwest Airlines, the fourth largest carrier in the United States, which > just completed its 29th year of profitability. > "Southwest Airlines has built its reputation on low fares and quality > service throughout the United States, and we continue to see a bright future > by utilizing an all-737 fleet," said Southwest President and Chief Operating > Officer Colleen Barrett. > Knowing a good thing when they see it, other airlines have modeled > themselves in Southwest's image. Ryanair, founded in 1985, was the first > European airline to convert to the low-fare model after its chief executive, > Michael O'Leary, visited Southwest Airlines in 1991. Since then, the airline > has grown to become Europe's most profitable airline and the largest low-fare > airline in Europe. The airline is growing at a managed growth rate of > 25 percent per annum and will carry over 12 million passengers this year. > "We're simply applying in Europe for the first time in a very disciplined > fashion the model Southwest Chairman Herb Kelleher already has established in > the United States," O'Leary recently told The Wall Street Journal. > Virgin Blue, founded in 2000 by Sir Richard Branson as a low-fare airline > for flights within Australia, had predicted a loss for its first three years, > but instead came in with a profit of $500,000 in its first seven months. > In 2000, WestJet, which began operations in 1996, became the second most > profitable airline in North America behind Southwest, and just celebrated its > 21st quarter of profitability with its 2002 First Quarter results. > GOL Airlines of Brazil carried 2.2 million passengers in 2001, its first year > of operation. > Even more remarkable than the fact that these airlines fly just one model > is that they all fly the same model -- the Boeing 737. In fact, the 737 makes > up more than 90 percent of the combined fleets of the low-fare carriers around > the world. > Why the 737? > Cost, for one. Low-fare carriers must tightly manage operating costs or > they cannot offer the low fares for which they are famous. The new model 737s > are designed to have the lowest operating costs in their class. In fact, on a > typical route 737 cash operating costs are nearly 4 percent less than its > closest competitor, the A320 series, in part due to its superior structural > efficiency. > "The newly redesigned 737s weigh less than the A320 and therefore require > lower engine thrust," said Carolyn Corvi, Boeing 737 and 757 programs vice > president. "This means the 737s use less fuel, and have lower engine > maintenance costs and lower navigation and landing fees." > The 737 maintenance costs are up to 35 percent lower than the A320 series > as reported by the U.S. Department of Transportation Form 41, an FAA-required > form on which airlines report their costs. > The 737 is not only less expensive to maintain, but easier too. Its > simple design and low stance on the ramp make the airplane easy to maintain > and load. Most equipment can be serviced at ground level, including the > engines. Newer 737s have fewer parts than older models, which improves > reliability and maintainability. Baggage can be loaded from the ground, > allowing for last-minute bag additions. All of this contributes to the quick > turnarounds that allow carriers to make maximum use of their airplanes -- in > other words, keeping them in the air earning revenue rather than sitting idle > on the ground. > "Our airplanes spend about 25 minutes at the gate between flights, versus > an industry norm of about 45 minutes to an hour," said Laura Wright, > vice president and treasurer at Southwest Airlines. > Reliability is another major reason airlines prefer the 737. > "The 737 is well known as the workhorse of the aviation industry," said > Brett Godfrey, chief executive officer of Virgin Blue. "It's reliable and > cost-efficient, two vital characteristics for a true low-fare airline." > The 737 is the industry leader in reliability. Because the airplane can > be turned around at the gate so quickly, airlines can get back on schedule if > they fall behind for any myriad of reasons. This allows airlines to deliver > passenger satisfaction as defined by the customers themselves: getting them > where they want to go, when they want to go, at a good value. > "The 737's reliability also means operators can use an airline for more > flights on any given day, giving passengers more departure time choices and > airlines the opportunities for more revenue," said Toby Bright, executive vice > president of Sales, Boeing Commercial Airplanes. > Flexibility is another attractive feature of the 737 for these types of > carriers. > "We wouldn't be saddled with an airplane that we could use only on > long-haul, or that we could use only on short-haul," said Sandy Campbell, > chief financial officer and senior vice president of WestJet. > Besides this range flexibility, the 737 comes in four different sizes in > the 100- to 200-seat market. The interiors are flexible, too. Operators can > choose optional flex seating, in which they can change a row of seats from > five-abreast business-class seating to six-abreast tourist-class seating in > less than one minute. A moveable cabin divider also allows configuration > changes between flights. > The 737's dominance as the airplane of choice for successful low-fare > airlines was recently reinforced when Ryanair placed the largest single order > in the Next-Generation 737's history. The Dublin, Ireland-headquartered > airline ordered 100 737-800s, with an option for 50 more, which will begin > delivery in 2002 and continue until 2010. > "This is a validation of the 737 as the airplane of choice for low-fare > airlines," Bright observed on the day the order was signed. > But Bright also is quick to point out that an all-737 fleet is not every > airline's route to success. > "The world is a big place, with a large number of airlines flying millions > of passengers on countless routes around the globe. There always will be room > for airplanes of every size, from large twin-aisles to small regional jets," > he said. > No one would claim that the Boeing 737 is the only reason these airlines > are a success, either. These low-fare airlines all offer many unique services > that keep their customers coming back. But as the evidence shows, an all-737 > fleet is a major contributing factor and a key element in their business > plans. > "It's difficult for me to visualize Southwest Airlines without the 737, > "Kelleher said. "It's beautifully designed and manufactured, and I think one > of the best decisions we ever made ... was to buy the Boeing 737." > For more information on the 737, visit > http://www.boeing.com/commercial/737family /.