WorldTraveler
Corn Field
- Joined
- Dec 5, 2003
- Messages
- 21,709
- Reaction score
- 10,662
WN confirmed that it is moving methodically forward with its integration of FL and its mgmt. of its expanded nationwide network post-merger by slowing new aircraft deliveries, acquiring used 737s, and committing to the 737 7 MAX.
WN is also increasing its share repurchase program and increasing its dividend, tools which WN has used to maintain its stock as investment grade.
http://finance.yahoo.com/news/southwest-airlines-returns-value-shareholders-151400702.html
Cranky Flyer recently released an analysis of WN's ATL schedule restructuring and notes how much smaller but also more local ATL local traveler focused its new schedule is.
CF is likely accurate that DL is happy with the number of cities that WN has dropped from ATL and WN is looking for more success in ATL by focusing on the local market. It is also likely that the impact on DL is likely to be a wash at best even w/ the restructuring; even if WN gains a larger share in some of the cities it retains, it has dropped so many cities from ATL and has also raised the fares in those that remain based on WN's higher costs that the ATL market for WN is not going to look at all like the way FL served ATL.
His most accurate statement is the last in which he said that WN probably bought FL in order to be able to gain a foothold in the ATL market, the largest one which WN did not serve prior to the merger by eliminating a competitor and then rebuilding ATL in the manner which WH normally serves large focus cities/hubs.
WN did gain great east coast access including to a number of slot controlled airports, in some cases moving those slots to serve other WN cities.
Overall an accurate read and reflects that WN is well-run but also knows how to effectively compete with DL in large DL hubs in such a way that both can successfully coexist, even if WN maintains double digit share compared to DL's share in those hubs which is usually 3X or more larger.
http://crankyflier.com/2013/05/13/what-it-means-when-southwest-says-it-has-de-hubbed-atlanta/
WN is also increasing its share repurchase program and increasing its dividend, tools which WN has used to maintain its stock as investment grade.
http://finance.yahoo.com/news/southwest-airlines-returns-value-shareholders-151400702.html
Cranky Flyer recently released an analysis of WN's ATL schedule restructuring and notes how much smaller but also more local ATL local traveler focused its new schedule is.
CF is likely accurate that DL is happy with the number of cities that WN has dropped from ATL and WN is looking for more success in ATL by focusing on the local market. It is also likely that the impact on DL is likely to be a wash at best even w/ the restructuring; even if WN gains a larger share in some of the cities it retains, it has dropped so many cities from ATL and has also raised the fares in those that remain based on WN's higher costs that the ATL market for WN is not going to look at all like the way FL served ATL.
His most accurate statement is the last in which he said that WN probably bought FL in order to be able to gain a foothold in the ATL market, the largest one which WN did not serve prior to the merger by eliminating a competitor and then rebuilding ATL in the manner which WH normally serves large focus cities/hubs.
WN did gain great east coast access including to a number of slot controlled airports, in some cases moving those slots to serve other WN cities.
Overall an accurate read and reflects that WN is well-run but also knows how to effectively compete with DL in large DL hubs in such a way that both can successfully coexist, even if WN maintains double digit share compared to DL's share in those hubs which is usually 3X or more larger.
http://crankyflier.com/2013/05/13/what-it-means-when-southwest-says-it-has-de-hubbed-atlanta/
