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Southwest considers move to Valley by Mike Sunnucks, The Business Journal of Phoenix
7:00 p.m. ET Feb. 26, 2006 Southwest Airlines Co. is in discussions with Phoenix officials, including Mayor Phil Gordon, regarding a move of major operations to Arizona from the company's Dallas base.
Southwest has approximately 5,500 workers at Dallas' Love Field Airport, including its corporate headquarters, maintenance operations, flight simulators and training centers.
Officials at the low-cost airline still are upset with federal flight restrictions related to Love Field and threatened late last year to move their headquarters and other operations out of North Texas to another major commercial center such as Houston, Baltimore, Las Vegas, Chicago or Phoenix if those rules are not changed. Those markets all are major hubs for Southwest.
Southwest executives have met with city officials, managers at Phoenix Sky Harbor International Airport and economic developers regarding a possible move to Phoenix. That includes a conference call and face-to-face meeting with Gordon, said city of Phoenix spokesman Scott Phelps.
Phelps said discussions include a possible headquarters move and relocation of other Southwest divisions from Dallas to Phoenix.
Such a move would be a huge economic victory for Phoenix, a region that long has been short on big corporate names. It also could be a substantial win for Gordon, a moderate Democrat who has pushed an aggressive economic development agenda for the city since taking office.
Southwest already has major flight and other operations in Phoenix and more than 4,200 workers in the Valley.
SWA and Tempe-based US Airways Group Inc. are the largest two carriers at Sky Harbor and Las Vegas' McCarran international airports. Southwest has large maintenance operations in Phoenix as well as a customer service center.
Phelps said Gordon talks to Southwest Chief Executive Gary Kelly on a routine basis throughout the year, but recent meetings included discussions of possible relocation of operations to Phoenix.
"We always are in conversations with Southwest Airlines to expand their operations at Sky Harbor," said Phelps. "With Southwest having the largest single operation at Sky Harbor, we talk with them constantly."
Southwest spokeswoman Paula Berg said she is not familiar with meetings regarding Arizona, and she said there is a lot of speculation regarding the airline's possible move.
The Greater Phoenix Economic Council, the region's main business attraction arm, declined to comment on a possible Southwest relocation to Phoenix.
"We can't make any comments on the record about Southwest," said Janet LaBar, spokeswoman for GPEC.
Southwest has more than 31,000 employees companywide and has been the most financially stable and successful airline in the turbulent times since the Sept. 11, 2001, terrorist strikes. It has turned a profit despite high fuel prices, increased airline taxes and security fees and a highly competitive industry landscape.
But Southwest wants to repeal the Wright Amendment so it can begin offering long-haul service out of Love Field in Dallas.
The Wright Amendment is a federal rule that limits flights from Dallas' Love Field Airport to short-haul trips to a handful of states bordering or near Texas.
Last year, Southwest spokeswoman Whitney Eichinger said without the changes, SWA may have to relocate its base out of Dallas.
Southwest officials, including executives such as Kelly, also argue that lifting the Wright restrictions would boost competition to Western cities and help lower fares in Texas and other markets, including Phoenix.
Arizona Sen. John McCain, who has fought to lift airport restrictions in New York and Washington, D.C., also wants to repeal the Wright Amendment.
American Airlines and Dallas/Fort Worth International Airport oppose Southwest's efforts, preferring the discount airline fly out of DFW Airport instead.
The move would be a big win for Sky Harbor, which is embarking on major growth and has been embroiled in a row over high travel costs incurred by some city of Phoenix employees.
If Southwest moves more jobs and operations to Phoenix, that would put even more competitive pressure on US Airways, which counts SWA as one of its rivals. It also would give Phoenix more business cache nationally. The region enjoys strong job growth but is not home to well-known corporate headquarters -- with exceptions being Phoenix-based PetSmart, US Air and Dial Corp.
7:00 p.m. ET Feb. 26, 2006 Southwest Airlines Co. is in discussions with Phoenix officials, including Mayor Phil Gordon, regarding a move of major operations to Arizona from the company's Dallas base.
Southwest has approximately 5,500 workers at Dallas' Love Field Airport, including its corporate headquarters, maintenance operations, flight simulators and training centers.
Officials at the low-cost airline still are upset with federal flight restrictions related to Love Field and threatened late last year to move their headquarters and other operations out of North Texas to another major commercial center such as Houston, Baltimore, Las Vegas, Chicago or Phoenix if those rules are not changed. Those markets all are major hubs for Southwest.
Southwest executives have met with city officials, managers at Phoenix Sky Harbor International Airport and economic developers regarding a possible move to Phoenix. That includes a conference call and face-to-face meeting with Gordon, said city of Phoenix spokesman Scott Phelps.
Phelps said discussions include a possible headquarters move and relocation of other Southwest divisions from Dallas to Phoenix.
Such a move would be a huge economic victory for Phoenix, a region that long has been short on big corporate names. It also could be a substantial win for Gordon, a moderate Democrat who has pushed an aggressive economic development agenda for the city since taking office.
Southwest already has major flight and other operations in Phoenix and more than 4,200 workers in the Valley.
SWA and Tempe-based US Airways Group Inc. are the largest two carriers at Sky Harbor and Las Vegas' McCarran international airports. Southwest has large maintenance operations in Phoenix as well as a customer service center.
Phelps said Gordon talks to Southwest Chief Executive Gary Kelly on a routine basis throughout the year, but recent meetings included discussions of possible relocation of operations to Phoenix.
"We always are in conversations with Southwest Airlines to expand their operations at Sky Harbor," said Phelps. "With Southwest having the largest single operation at Sky Harbor, we talk with them constantly."
Southwest spokeswoman Paula Berg said she is not familiar with meetings regarding Arizona, and she said there is a lot of speculation regarding the airline's possible move.
The Greater Phoenix Economic Council, the region's main business attraction arm, declined to comment on a possible Southwest relocation to Phoenix.
"We can't make any comments on the record about Southwest," said Janet LaBar, spokeswoman for GPEC.
Southwest has more than 31,000 employees companywide and has been the most financially stable and successful airline in the turbulent times since the Sept. 11, 2001, terrorist strikes. It has turned a profit despite high fuel prices, increased airline taxes and security fees and a highly competitive industry landscape.
But Southwest wants to repeal the Wright Amendment so it can begin offering long-haul service out of Love Field in Dallas.
The Wright Amendment is a federal rule that limits flights from Dallas' Love Field Airport to short-haul trips to a handful of states bordering or near Texas.
Last year, Southwest spokeswoman Whitney Eichinger said without the changes, SWA may have to relocate its base out of Dallas.
Southwest officials, including executives such as Kelly, also argue that lifting the Wright restrictions would boost competition to Western cities and help lower fares in Texas and other markets, including Phoenix.
Arizona Sen. John McCain, who has fought to lift airport restrictions in New York and Washington, D.C., also wants to repeal the Wright Amendment.
American Airlines and Dallas/Fort Worth International Airport oppose Southwest's efforts, preferring the discount airline fly out of DFW Airport instead.
The move would be a big win for Sky Harbor, which is embarking on major growth and has been embroiled in a row over high travel costs incurred by some city of Phoenix employees.
If Southwest moves more jobs and operations to Phoenix, that would put even more competitive pressure on US Airways, which counts SWA as one of its rivals. It also would give Phoenix more business cache nationally. The region enjoys strong job growth but is not home to well-known corporate headquarters -- with exceptions being Phoenix-based PetSmart, US Air and Dial Corp.
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