Southwest Purchase of Airtran and US/DL Slot Swap

[FutureUScapt]

Or AS, HA, VX, F9, B6, FL...

Jim

Because AS, HA, and VX have a desire for within-perimeter slots?

And it's unclear to me if F9 would've qualified because the parent company, Republic Airways, effectively has a codeshare agreement with US, an airline with more than 5% of the slots. Supposing that weren't an issue, F9 desire would be rather limited seeing that one of their main hubs is beyond the perimeter.

This was all about getting B6 and/or WN into DCA, and evidently B6 getting access to the market was still insufficient as it didn't solve the "market share concerns." Sigh...

The DOT has long held that BWI and DCA/IAD are separate markets, citing WN/FL's presence at BWI as not affecting fares at Washington much if any

True, but "DCA/IAD" can either be counted as one market or two, depending on whatever situation best suits the DOT's argument.

Back in 2000, UA/US would've been required to divest DCA slots because they would've been too dominant in Washington DC (DCA and IAD treated as one market).

Fast forward to the DL/US proposed slot swap in 2009 and the fact that UA maintains a large hub at IAD is now meaningless as US would've become too dominant at DCA (DCA and IAD now considered as separate markets).

 

[BoeingBoy]

Because AS, HA, and VX have a desire for within-perimeter slots?

Probably not, but nothing in the DOT requierment precluded them from buying slots.

Fast forward to the DL/US proposed slot swap in 2009 and the fact that UA maintains a large hub at IAD is now meaningless as US would've become too dominant at DCA (DCA and IAD now considered as separate markets).

If UA and US had proposed a merger instead of UA & CO, I expect that the combined presence at Washington would still be a concern for the DOT. But that wasn't what US/DL proposed. You can't deny that DCA (and LGA) are unique - airports where there's more demand for access than there is access allowed. That's why back in 2000 and again in 2010 the DOT's concern was access to DCA being too concentrated in one carrier's hands, which in both cases resulted in the requirement to divest DCA slots.

Jim

 

[flybynite]

Southwest is coming to Charlotte.

 

[NYGiantsFan90]

Actually they are not, WN has said they are going to take a year to review routes, its still AirTran aka Valujet.

 

[flybynite]

AirTran has 5 daily flights in Charlotte. While we have 600. Not too sure if there's much room for them here. (gates)

But it's growth in Charlotte depends on what it does with AirTrans hub in Atlanta.

 

[Travelpro72]

Never underestimate Southwest. They can pump a good number of flights out of just one gate without breaking a sweat. Even though ATL is close to CLT they could quite easily add service to cities such as EWR for instance. WN will inherit the flights Airtran currently has in CLT and will evaluate what they can and cannot do. Overall this merger will be a thorn in airlines sides everywhere.

 

[cynic]

AirTran has 5 daily flights in Charlotte. While we have 600. Not too sure if there's much room for them here. (gates)

But it's growth in Charlotte depends on what it does with AirTrans hub in Atlanta.

With the two airtran gates, they will be up to 15-20 once the southwest route planning group takes over. Nothing compared to the number US has, but they will certainly pick the markets with high fares and cut into US profitability.

 

[Airline Employee]

I disagree. The antitrust issues weren't that WN had no slots, the antitrust issues were the increasing market concentration of DL at LGA and US at DCA and the remedy demanded by the feds was divesting some slots at each. DL and US came up with their competing remedy (rejected by the feds) that cleverly tried to keep any of the slots out of WN's hands. The feds rejected that plan. WN buying FL merely substitues the owner of FL's slots but does not decrease the increaesed market concentration of DL and US at their respective strongholds and thus, this purchase doesn't really change anything about the slot swap.

The FL acquisition changes a lot. SWA has 7 slots at LGA, FL has 20 which total 27. UA has 27 slots which was enough for the DOT to annouce a scam of a 5% or less market share. With 27 LGA slots WN is no longer a small player at LGA. WN claimed the slots were "public assets" and that neither DL nor US could choose which airline to give them to yet WN got all slots at EWR. They were "chosen". The DOT also had another scam that said that you had a to have a "blind auction" which guaranteed SWA getting slots at DCA & LGA and the DOT knew this. They did not allow US or DL to lease slots like AA/BA are allowed or like CO did for SWA at EWR. DOT is lot allowed to play favorites and they did and they know it. There is no way they can show up in court with a straight face and say that they treated DL/US fare.

And since B6 & WN will soon be at DCA it proves that any carrier who wants to get slots can get them. The slot swap is going to have to be looked at again.

Also if the DOT approves FL/WN without any regard to no competition in MDW or BWI or limited in MCO or TPA then something is seriously wrong there. WN & FL are the #1 & #2 carriers respectively at BWI.

 

[Dont call me Shirley]

I don't think a merger with AA is what will happen. My bet is on a merger with jetblue, US leaves star alliance to join one world alliance and strengthens this new codeshare that jetblue has recently started with AA.

US is to B6 like K-mart is to Macy's

 

[etops1]

US is to B6 like K-mart is to Macy's

You better have a good back up to that one. Why? because jetblue has Directv and blue potatoe chips? That's the stupidest comment I have ever heard ...Just sayin .

 

[IberiaMAL]

Charlotte is not the only thing WN will gain.

Memphis will probably have higher priority than Charlotte. Boston, New York, Harrisburg, Richmond, Dayton, Sarasota etc. will also have just as much priority as Charlotte. Boston, New York, and Memphis being much higher I'd bet.



Cities I see being dropped: Gulfport, Asheville, Pensacola, Allentown, Atlantic City, Knoxville, Tunica, and Charleston. That's a good thing for US.



But Charlotte will be nothing but a blip on the radar for WN. And I don't see this making it any easier for Delta/US to do the slot swap.

 

[IberiaMAL]

You better have a good back up to that one. Why? because jetblue has Directv and blue potatoe chips? That's the stupidest comment I have ever heard ...Just sayin .

I assume Kmart is much bigger than Macy's and Macy's is much nicer than Kmart.


What's so stupid about what she said? :huh:

 

[etops1]

I assume Kmart is much bigger than Macy's and Macy's is much nicer than Kmart.


What's so stupid about what she said? :huh:

Well I took it it as an insult to USAirways . Sorry but even though my company isn't the Darling of the industry I still will stick up for it and it's employees . We have come a long way to where we are today .Granted we have a LONG way to go but you just get tired of all the stupid snide remarks and comments. It gets a little old ....Just sayin . We would bring as much to Jetblue as they would bring to US if a merger were to take place .

 

[signals]

Just for the record...I called the Charlotte move first! Follow my posts and see. I knew WN was heading for Charlotte

It doesn't matter if they have only 2 gates, 1 gate, or 100 gates, the point is that they've entered that market. They are in the HEART! B) My guess is that they'll cut into US's major markets out of Charlotte. I'm also guessing that their flights will be full.

As far as the slot swap that is where LUV made an error. Instead of making a fuss, it should have let the US/DL pick-and-choose-who-we-want deal go through. Why? Because imagine realizing that the slots given by an agreement to Air-Trash are now given to LUV!!!

So any new merger RUMORS coming from US?

 

[john john]

We would bring as much to Jetblue as they would bring to US if a merger were to take place .

RJ's YV DH-8 NIC PHX LAS and SHARES/QIK ?