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> One would hope that the market could work this out Southwest did lose 10% of its market value overnight, so it seems the market is punishing them. Given how

> One would hope that the market could work this out Southwest did lose 10% of its market value overnight, so it seems the market is punishing them. Given how much executive compensation is in stock, a lot of senior level folks at Southwest are likely feeling some pain (or, least, as much pain as any very rich person ever feels). > Instead what people do is find the lowest fare possible, all other considerations be damned. That's an over-simplification. Yes, passengers are very price sensitive. But whenever I talk to friends and family about travel, it's become increasingly clear that they factor predicted quality of service in to their choice. I don't fly United and try to avoid American. I'm certain that many many people will hesitate to fly on Southwest after this. People aren't stupid and no one wants to roll the dice on an entire vacation just to save twenty bucks.

Spivak 4y ago
And people will buy the dip, the news cycle will blow over and in a year the market won’t remember this at all.
dre85 4y ago
I don't totally agree with this. Prices between airlines and routes can vary dramatically to the same destination so it's not like saving 20$ will usually be the difference between the cheapest option and a more preferred option. Also if you look at situations like Volkswagen, it seems to me that neither governments nor consumers hit them very hard after their massive scandal a few years ago. I see new VWs all over the place.
- colechristensen 4y ago
  I love my Volkswagen. In theory I care about emissions test cheating but in practice it wouldn’t affect my decision to buy in the future. It’s the best designed and built car I’ve ever had and so Volkswagen group brands will always be on the top of my list of cars to look at. A couple of VW execs went to prison and it cost the company 30 billion, that feels like getting hit hard enough by governments. What more do you want?
- toast0 4y ago
  I had a cheating VW and the experience was great. I got better than published mileage, and then they bought the car back for more than it was worth. I can only hope the car I replaced it with also cheated on the emissions, because I'd love to sell it back for more than it's worth, too.

Spivak 4y ago

And people will buy the dip, the news cycle will blow over and in a year the market won’t remember this at all.

dre85 4y ago

I don't totally agree with this. Prices between airlines and routes can vary dramatically to the same destination so it's not like saving 20$ will usually be the difference between the cheapest option and a more preferred option. Also if you look at situations like Volkswagen, it seems to me that neither governments nor consumers hit them very hard after their massive scandal a few years ago. I see new VWs all over the place.

colechristensen 4y ago
I love my Volkswagen. In theory I care about emissions test cheating but in practice it wouldn’t affect my decision to buy in the future. It’s the best designed and built car I’ve ever had and so Volkswagen group brands will always be on the top of my list of cars to look at. A couple of VW execs went to prison and it cost the company 30 billion, that feels like getting hit hard enough by governments. What more do you want?
toast0 4y ago
I had a cheating VW and the experience was great. I got better than published mileage, and then they bought the car back for more than it was worth. I can only hope the car I replaced it with also cheated on the emissions, because I'd love to sell it back for more than it's worth, too.