New City...hot off the press.

[wnbubbleboy]

There is no secret to the NEW business plan. Colleen stated it last year "Over priced under served" is the new path we are taking.

Now, what other stations are overpriced and underserved?

 

[Harold]

It's true that in the past that Southwest has avoided and hid from Northwest, notably by staying away from MSP and MEM. Southwest has not had more than 18 weekday departures from DTW, and a Saturday only non-stop (how stupid) to LAS is the only new route from DTW since 1997. It's abvioius that Herb was very 'intimidated' and 'scared' of Northwest, since SWA has expanded ferociously everywhere except where Northwest dominates. Northwest is the only other carrier that Southwest is 'afraid of'. But, with Northwest in Chapter 11, and ready to go through a huge downsizing, and construction underway of a new terminal at DTW which will replace both the old terminals and be open in 2008, maybe Southwest will be in a position to take on Northwest more aggressively. Comments, anyone.

 

[ELP_WN_Psgr]

It's true that in the past that Southwest has avoided and hid from Northwest, notably by staying away from MSP and MEM. Southwest has not had more than 18 weekday departures from DTW, and a Saturday only non-stop (how stupid) to LAS is the only new route from DTW since 1997. It's abvioius that Herb was very 'intimidated' and 'scared' of Northwest, since SWA has expanded ferociously everywhere except where Northwest dominates. Northwest is the only other carrier that Southwest is 'afraid of'. But, with Northwest in Chapter 11, and ready to go through a huge downsizing, and construction underway of a new terminal at DTW which will replace both the old terminals and be open in 2008, maybe Southwest will be in a position to take on Northwest more aggressively. Comments, anyone.

I will provide some comments.

I don't think Southwest is afraid of any other airline.

Southwest has no trouble going in to the airports served by the so-called major carriers.

It is now and has always been a matter of going where they can make the most money.

I know that sounds trite, but it is very true.

When they expanded in to California in 1982.....they immediately went to LAX rather than try to encroach on the markets via Ontario, or Burbank, or Long Beach.

They went to LAX because they saw it as where they could make the most money.

A few years later they hit Fort Lauderdale instead of Miami. Not due to fear, but because that is where they could make the most money.

It is hard to fault the decision making process of a company profitable every single year since 1973.

It has always been about overpriced and underserved. The very first expansion...after the 3 original cities of Dallas, Houston, and San Antonio.....was Harlingen, Texas.

Some thought Southwest had lost their minds. They wanted Austin...or maybe El Paso.

But Southwest had done the math and determined that of all possible places to expand, they would make the most money by running flights to Harlingen.

There's a story I always thought was funny....when Margaret Thatcher was Prime Minister of England....and was scheduled to be at the same place as the Queen. She had her staff inquire as to what the Queen might be wearing, as she did not want to wear something similar or that might clash color-wise. Mrs Thatcher's staffer was told "tell the Prime Minister not to worry, the Queen never notices what other people have on."

And that's true, to a great extent, for Southwest Airlines Co. They do not pay too much attention to what other airlines may choose to do or not do. They are incredibly focused on plotting their own course of action, the one that will make the most money for their company, their employees, and their shareholders.

Weird concept, eh?

 

[WNjetdoc]

Good post ELP and Bubbly-boy. Its all about the Benjamins and where its best for us to earn said Benjamins.

 

[KCFlyer]

This will continue to happen as the route maps start to overlap. Southwest will continue to go into "non-traditional" markets for them because they have to start to steal market share directly in markets in order to grow their business enough to offset the high employee costs and offset the large amount of jets being delivered. They're running out of parking spots for these planes. There are also no more no brainer routes to bring low fares to domestically.

I don't think Southwest ever entered any market with "market share" as the primary goal. Profit always has been and always will be number one...market share be damned.

 

[Harold]

Your responses to my posting are very honest and accurate. I agree completely.

 

[NewHampshire Black Bears]

I will provide some comments.

I don't think Southwest is afraid of any other airline.

Southwest has no trouble going in to the airports served by the so-called major carriers.

It is now and has always been a matter of going where they can make the most money.

I know that sounds trite, but it is very true.

When they expanded in to California in 1982.....they immediately went to LAX rather than try to encroach on the markets via Ontario, or Burbank, or Long Beach.

They went to LAX because they saw it as where they could make the most money.

A few years later they hit Fort Lauderdale instead of Miami. Not due to fear, but because that is where they could make the most money.

It is hard to fault the decision making process of a company profitable every single year since 1973.

It has always been about overpriced and underserved. The very first expansion...after the 3 original cities of Dallas, Houston, and San Antonio.....was Harlingen, Texas.

Some thought Southwest had lost their minds. They wanted Austin...or maybe El Paso.

But Southwest had done the math and determined that of all possible places to expand, they would make the most money by running flights to Harlingen.

There's a story I always thought was funny....when Margaret Thatcher was Prime Minister of England....and was scheduled to be at the same place as the Queen. She had her staff inquire as to what the Queen might be wearing, as she did not want to wear something similar or that might clash color-wise. Mrs Thatcher's staffer was told "tell the Prime Minister not to worry, the Queen never notices what other people have on."

And that's true, to a great extent, for Southwest Airlines Co. They do not pay too much attention to what other airlines may choose to do or not do. They are incredibly focused on plotting their own course of action, the one that will make the most money for their company, their employees, and their shareholders.

Weird concept, eh?

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

ELP_WN,

We can differ on the "reasons" why WN and AA avoid each other(DFW/DAL area aside)

If you want to call it lack of fear, so be it.

If you've been flying WN for any length of time, you know that WN and AA have always had a "healthy respect" for each other, while (in addition to) being neighbors in N. Texas to boot.

I SERIOUSLY doubt that we will EVER see WN, in JFK,MIA,ORD, and DFW(Even "IF" wright is reversed)

?????


NH/BB's

 

[Harold]

If there is some respect or truce between SWA and AA, does that mean that if the Wright is amended SWA won't have LUV-MDW or LUV-LAX routes anytime soon? Or are those routes desireable by SWA?

 

[mga707]

If there is some respect or truce between SWA and AA, does that mean that if the Wright is amended SWA won't have LUV-MDW or LUV-LAX routes anytime soon? Or are those routes desireable by SWA?

If Wright were to be TOTALLY done away with, I think DAL-MDW would be one of the first routes to be added, along with DAL-BWI/LAS/PHX. Those four airports are by far WN's four largest (don't-call-them-)"hubs".
DAL-LAX, while desirable, would be a little further down the list, I'd guess.

I personally doubt that Wright will be totally abolished in the near term, though. I think it's much more likely that there will be a further loosening of the restrictions, a la the 'Missouri compromise" that recently took effect. Perhaps a distance radius rather than a state boundary limit?

 

[luver41]

If Wright were to be TOTALLY done away with, I think DAL-MDW would be one of the first routes to be added, along with DAL-BWI/LAS/PHX. Those four airports are by far WN's four largest (don't-call-them-)"hubs".
DAL-LAX, while desirable, would be a little further down the list, I'd guess.

I personally doubt that Wright will be totally abolished in the near term, though. I think it's much more likely that there will be a further loosening of the restrictions, a la the 'Missouri compromise" that recently took effect. Perhaps a distance radius rather than a state boundary limit?

My guess is a removal of the ban on through ticketing in fairly short order which would allow DAL-ABQ-LAX etc, with a phased out repeal of the whole deal within three years. May be some gates at DAL closed as part of the deal.

 

[dl764]

Hot off the press, we will start Dulles service, IAD, in the fall, starting off with two gates. You heard it here first.

Here is a link.... New city for SWA

Wonderful!

 

[markkus757]

KCFlyer - It is going to become a market share issue, especially in Denver. There is already a lower fare airline there that has forced a response from United. There are countless other markets that already have significant low fare penetration in them. Most of these markets also happen to be major destinations, not periferal airports that Southwest has traditionally started up. They can no longer just be satifisfied with serving the smaller airports, like GSO, ABE, or any of this size. That's why you'll see them going into major destinations for the most part now, because the other low fare airlines are already doing this. Southwest has to beat them into these markets, because I believe there will be limited support for a low fare network carrier and only one would probably survive long-term in these markets. They are going to start routes to go steal other airlines' market share.

 

[dl764]

Excellent news for IAD flyers.

Whatever happened to RIC? I thought WN said they would serve RIC a few years ago...

I had heard it, but never believed it.

 

[coolflyingfool]

I think that SWA has avoided the NW hubs because SWA picks and chooses its battles wisely. It picks ones that it believes it can win. MSP and DTW are NW strongholds. If SWA goes in with 12 flights a day, it will get some passengers, but it will not dent NWA. NW would probably respond dramatically with increased service. SWA is adding cities that will be destinations from MSP and DTW to its route system. PIT, PHL, DEN, IAD, and RSW have come in along with additional gates in MCO, TPA, BWI, MDW, PHX, HOU, and OAK. I think SW is just getting all its goundwork done before it attempts what will be a big battle. just my thoughts..........

 

[Harold]

Just a few months ago in '05 there was 'talk' about Charlotte becoming an SWA destination, as soon as gates become available. Has Charlotte been sidelined, or is it a long term 'coming soon' destination similar to Ft. Myers taking almost 2 years to finalise.