BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
- 5,865
- Banned
- #31
USA320Pilot's link leads to the sign-up page, or at least it did for me. Here is the full article:
Jim
Southwest's $29 Fares Jolt US Airways in Philadelphia
By MICHELINE MAYNARD
Published: February 13, 2004
eginning a heated competition for passengers in Philadelphia, Southwest Airlines said yesterday that fares would cost as little as $29 for a one-way ticket when it begins service there on May 9.
US Airways, the leading carrier out of Philadelphia, which is one of its three hubs, is countering Southwest's entry by starting a "buy three, get one free" promotion for customers who purchase tickets on its Web site.
Southwest, the nation's biggest low-fare carrier, announced plans to fly from Philadelphia last October, with 14 daily flights to Providence, R.I.; Chicago; Phoenix; Las Vegas; and Orlando and Tampa, Fla. Southwest will serve another 31 cities through connecting flights at those airports. Southwest said its cheapest fares from Philadelphia, purchased 14 days in advance, would range from $29 one-way to Providence, to $99 one-way to Midway Airport in Chicago. Tickets went on sale yesterday.
The move by Southwest jolted US Airways, which is the dominant carrier on five of the six routes that Southwest plans to fly. US Airways, which emerged from bankruptcy protection last year, is revising its restructuring plan, in part to reflect the challenge it is facing from low-fare airlines.
US Airways hired Morgan Stanley to find bidders for a series of assets, including one of its hubs. Pittsburgh, Philadelphia and Charlotte, N.C., are its hubs.
Last week, senior management met with union leaders to begin discussions on a third set of wage and benefit cuts, which unions are resisting.
Full-fare tickets on Southwest, purchased at the last minute with no discount, will start at $49 one-way to Providence, ranging up to $299 one-way to Las Vegas and Phoenix, the maximum fare that it charges nationwide between any two cities. The prices do not include federal or local fees or taxes.
US Airways did not return a phone call seeking comment on its fares, but its Web site yesterday said the cheapest fare available to Providence on May 9 was $341 for a round trip, the equivalent of $170.50 each way, more than five times as much as Southwest. The Web site said the cheapest fare to Chicago on that day was $218 for a round trip, the equivalent of $109 each way, 10 percent more than its new rival.
Southwest released a chart in which it said its competitors charged up to $497 one-way, or 10 times as much for a last-minute ticket from Philadelphia to Providence, and $1,270 one-way to Phoenix, or four times as much as Southwest.
It did not name US Airways, but a spokeswoman for Southwest said the comparisons were drawn against US Airways' fares and did not represent an average from Philadelphia. A variety of airlines, including American and AirTran, compete with US Airways from Philadelphia, though it has two-thirds of the flights from there.
Last week, B. Ben Baldanza, the US Airways executive vice president for marketing, said he did not think fares from Philadelphia would fall significantly when Southwest arrived, since other low-fare carriers already operate there. But James C. Wimberly, Southwest's executive vice president and chief of operations, disagreed.
"I think you can see from the percentages that we do expect a dramatic decrease" in ticket prices, he said.
With Southwest showing its hand, US Airways may be forced to match its fares on the routes where the two airlines compete, said Darin Lee, senior managing economist with LECG, an industry consulting group based in Cambridge, Mass.
"They clearly have to respond. Keeping their current fare structure in place would be suicidal," Dr. Lee said.
Mr. Wimberly also said Southwest would add new routes from Philadelphia once it begins service there. "We would anticipate quicker expansion than otherwise would be expected," he said.
US Airways said it would provide a free ticket anywhere in the United States and Canada to customers who bought three tickets over the Internet for travel on US Airways, US Airways Express or the US Airways shuttle. Customers will pay applicable taxes and fees on the free ticket.
Jim
Southwest's $29 Fares Jolt US Airways in Philadelphia
By MICHELINE MAYNARD
Published: February 13, 2004
eginning a heated competition for passengers in Philadelphia, Southwest Airlines said yesterday that fares would cost as little as $29 for a one-way ticket when it begins service there on May 9.
US Airways, the leading carrier out of Philadelphia, which is one of its three hubs, is countering Southwest's entry by starting a "buy three, get one free" promotion for customers who purchase tickets on its Web site.
Southwest, the nation's biggest low-fare carrier, announced plans to fly from Philadelphia last October, with 14 daily flights to Providence, R.I.; Chicago; Phoenix; Las Vegas; and Orlando and Tampa, Fla. Southwest will serve another 31 cities through connecting flights at those airports. Southwest said its cheapest fares from Philadelphia, purchased 14 days in advance, would range from $29 one-way to Providence, to $99 one-way to Midway Airport in Chicago. Tickets went on sale yesterday.
The move by Southwest jolted US Airways, which is the dominant carrier on five of the six routes that Southwest plans to fly. US Airways, which emerged from bankruptcy protection last year, is revising its restructuring plan, in part to reflect the challenge it is facing from low-fare airlines.
US Airways hired Morgan Stanley to find bidders for a series of assets, including one of its hubs. Pittsburgh, Philadelphia and Charlotte, N.C., are its hubs.
Last week, senior management met with union leaders to begin discussions on a third set of wage and benefit cuts, which unions are resisting.
Full-fare tickets on Southwest, purchased at the last minute with no discount, will start at $49 one-way to Providence, ranging up to $299 one-way to Las Vegas and Phoenix, the maximum fare that it charges nationwide between any two cities. The prices do not include federal or local fees or taxes.
US Airways did not return a phone call seeking comment on its fares, but its Web site yesterday said the cheapest fare available to Providence on May 9 was $341 for a round trip, the equivalent of $170.50 each way, more than five times as much as Southwest. The Web site said the cheapest fare to Chicago on that day was $218 for a round trip, the equivalent of $109 each way, 10 percent more than its new rival.
Southwest released a chart in which it said its competitors charged up to $497 one-way, or 10 times as much for a last-minute ticket from Philadelphia to Providence, and $1,270 one-way to Phoenix, or four times as much as Southwest.
It did not name US Airways, but a spokeswoman for Southwest said the comparisons were drawn against US Airways' fares and did not represent an average from Philadelphia. A variety of airlines, including American and AirTran, compete with US Airways from Philadelphia, though it has two-thirds of the flights from there.
Last week, B. Ben Baldanza, the US Airways executive vice president for marketing, said he did not think fares from Philadelphia would fall significantly when Southwest arrived, since other low-fare carriers already operate there. But James C. Wimberly, Southwest's executive vice president and chief of operations, disagreed.
"I think you can see from the percentages that we do expect a dramatic decrease" in ticket prices, he said.
With Southwest showing its hand, US Airways may be forced to match its fares on the routes where the two airlines compete, said Darin Lee, senior managing economist with LECG, an industry consulting group based in Cambridge, Mass.
"They clearly have to respond. Keeping their current fare structure in place would be suicidal," Dr. Lee said.
Mr. Wimberly also said Southwest would add new routes from Philadelphia once it begins service there. "We would anticipate quicker expansion than otherwise would be expected," he said.
US Airways said it would provide a free ticket anywhere in the United States and Canada to customers who bought three tickets over the Internet for travel on US Airways, US Airways Express or the US Airways shuttle. Customers will pay applicable taxes and fees on the free ticket.
