Slot Swap

[signals]

Also, I highly doubt it they would funnel traffic out of YYZ to LGA to connect onto DL to FLA. WS serves the following: FLL, RSW, JAX, EYW, MIA, MCO, TPA, PNS - there is no need to funnel traffic via LGA on DL or any other US carrier (you know they also code-share with AA, what makes DL so special?).


The gate space space they will be getting from the deal makes DL so special. They already lost against AC head to head at LGA before but now they will have more flights and options with DL and will funnel left over traffic on DL out of LGA to supplement any business traffic that they will try to pry away from AC. Watch for DL to grow some Canadien markets out of LGA as well.

I see YYZ traffic flying B6 to MCO without going to LGA. This out of my dinky location!

 

[WorldTraveler]

I think WN is planning something and they aren't tipping their cards. A peaceful coexistance seems out of the question. Datlanta is their main target

you do realize that WN's reservations system cannot handle itineraries other than within the 48 states because the tax structure for all flights outside of the 48 states is different... that is why FL will operate all flights outside the 48 states for now.
Part of the reason WS decided to not pursue an arrangement with WN was specifically over automation.
Of course the network carrier res systems can handle transborder and int'l pricing... and transborder (US/Canada) pricing can be some of the most complex with respect to tax calculation.
Facts would indicate that WS wants to to develop a relationship with DL specifically because of DL's east coast reach... and they WON'T be connecting passengers over LGA to/from FLA.

 

[BoeingBoy]

Facts would indicate that WS wants to to develop a relationship with DL specifically because of DL's east coast reach... and they WON'T be connecting passengers over LGA to/from FLA.

I wouldn't be so quick to rule out connections to Florida - DL serves several cities that WS doesn't. Believe it or not, but some of those snow birds want to go somewhere in Florida that WS doesn't serve...

Jim

 

[700UW]

And that has what to do with the slot swap?

 

[WorldTraveler]

I wouldn't be so quick to rule out connections to Florida - DL serves several cities that WS doesn't. Believe it or not, but some of those snow birds want to go somewhere in Florida that WS doesn't serve...

Jim

accurate... and not all Florida traffic is low yielding. But neither DL or WS wants to carry low fare traffic via LGA... the slots were too expensive for WS and DL needs to carry high yield traffic in order to be the airline of business in NYC.
.
WS WON half of the new slots to LGA and DL is developing a partnership with them.... and I don't think the two are coincidental.

 

[usa1]

Jetblue out bids WN

http://www.marketwatch.com/story/jetblue-gets-ny-dc-slot-pairs-in-auction-2011-12-01?siteid=yhoof2

 

[signals]

Article

 

[NYCDelta]

I think WN is planning something and they aren't tipping their cards. A peaceful coexistance seems out of the question. Datlanta is their main target

Not anytime soon. WN's offering (including AirTran) at ATL next summer sits at the 180 flight/day range. Not much different from where AirTran has been. In fact, they have begun dropping small cities from ATL and many believe most of the ATL-Florida will be dropped as well. They offer many non-stops from Florida and people who need to connect can do so through BWI/BNA/STL/MDW just fine.

 

[WorldTraveler]

Not anytime soon. WN's offering (including AirTran) at ATL next summer sits at the 180 flight/day range. Not much different from where AirTran has been. In fact, they have begun dropping small cities from ATL and many believe most of the ATL-Florida will be dropped as well. They offer many non-stops from Florida and people who need to connect can do so through BWI/BNA/STL/MDW just fine.

WN now has to decide it if it is worth their while to maintain the majority of the LGA and DCA slots to/from ATL since they did not gain anything through the slot auction. Chances are very high that they will decide that it is not worth concentrating their slot portfolio so heavily at ATL, favoring instead to move some of those slots to other hubs. It makes far more sense for WN to be able to offer additional LGA/DCA flights to other WN hubs. A smaller WN LGA/DCA-ATL operation would weaken the FL/WN hub and allow for the possibility of further shrinkage.
When you combine with WN's apparent desire to get rid of the 717 fleet, the likelihood of ATL shrinking to or below 150 flights is pretty high.

 

[USA320Pilot]

Southwest's Kelly calls JetBlue's bid for Washington national slots 'absolute madness'

Terry Maxon/Reporter
[email protected] | Bio
5:16 PM on Mon., Dec. 5, 2011 | Permalink

JetBlue Airways two weeks ago won the bidding for 16 takeoff and landing slots at Reagan Washington National Airport, enough for eight round trips a day at the airport. JetBlue paid $40,000,050.01 to Southwest Airlines' second-place offer of $32,240,224.00.

In his weekly hotline to employees, Southwest chairman and CEO Gary Kelly defended Southwest's bid for the slots, and shook his head (verbally) at the winning bid.

"We bid a whole bunch of money. To put it in perspective, for eight daily departures out of Washington National we bid the equivalent of one airplane of over 30 million bucks. As you can imagine when we're not hitting our profit targets, that absolutely stretches the limit of what I was comfortable with," Kelly told employees.

"The winning bid, believe it or not, was over $40 million. That is absolute madness. It is a guaranteed money-loser," he said.

Southwest is the biggest airline at Baltimore, but has only a handful of flights out of Washington Dulles and none at Washington National. It will gain access to the airport when it integrates AirTran Airways into Southwest.

Kelly told employees that "We will win the war for these markets. We will do it with lower costs. And we'll do it with profitability. I can assure you that while I wanted to get those additional slots, it wasn't a mandate. It wasn't an imperative for us to succeed in those markets, much less with our big four strategic initiatives we have underway."

Those four initiatives are the integration of AirTran, bought May 2; the addition of Boeing 737-800s to Southwest's fleet in early 2012; the revamping of the Rapid Rewards frequent-flier program, launched in March; and a replacement reservation system, ETA unannounced.