How Are Things In Philadelphia

Here's an update from the Philadelphia Inquirer:

http://www.philly.com/mld/inquirer/business/8950628.htm

"Airline thrilled at success in Phila.
Southwest officers said the number of bookings from the carrier's recent opening was amazing.
By Tom Belden
Inquirer Staff Writer
Friday, June 19, 2004

NEW YORK - Southwest Airlines expected to do well when it started serving Philadelphia last month, but officers of the discount carrier said yesterday that the response from the region's travelers - apparently starving for low airfares - had amazed them.

"It's the most successful market opening we've ever had," Jim Parker, Southwest's vice chairman and chief executive officer, said during a flight aboard the airline's newest jet. "Bookings have been excellent... and load factors [percentage of available seats sold] have been outstanding. I think it's a reflection of how high fares have been artificially depressing demand for a long time."

Neither Parker nor a gaggle of other Southwest officials, who spoke during a flying news conference over New York City and Long Island, would say exactly how many passengers it has carried or how many advance reservations it has taken since the airline started service May 9 to six cities from Philadelphia International Airport.

But, said chief financial officer Gary C. Kelly, "I know on some days, all the seats on all the flights were full... . It's been even better and happened even faster than we expected."

Philadelphia is the 59th city to get the airline's service since it went into business 33 years ago today as a two-airplane carrier with service to three Texas cities. The company showed off the new 737-700-model jet to a group of reporters and financial analysts on the flight to nowhere, which took off and landed at LaGuardia Airport, a place the airline says it has no plans to serve regularly.

Southwest, known for starting small and growing slowly when it has launched service elsewhere, started in Philadelphia with 14 flights a day to the six cities. It plans to add another 14 a day to seven more cities in July, and in September, it will begin a Saturday-only nonstop flight to a 14th city, San Diego.

That is the most new service the airline has ever started from one city in the first two months, Kelly said. "It has every sign that it will continue to grow."

The Southwest officials said Philadelphia could have about 40 flights a day within a few months. The airline has only four gates, in Terminal E, at Philadelphia airport, which will limit its growth unless it can find more.

Southwest's assault on the Philadelphia market forced US Airways, the airport's dominant carrier with 57 percent of the traffic, to cut its fares sharply on the routes where the carriers compete.

Southwest also used its airborne news conference to announce that on Sept. 15, it will add 18 daily flights between other cities.

Southwest flies nothing but 737 jets, and the newest one is No. 400 in its fleet."

LoneStarMike
 
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