SWA Will Resume SFO Service In The Fall
              
                            Southwest will resume SFO service in the fall
                      Destinations of discount airline's planned 14 daily departures are not yet determined, CEO says
                                            
           David Armstrong, Chronicle Staff Writer
     Friday, February 9, 2007
                                   Southwest Airlines, the nation's largest discount carrier, plans to resume  service at San Francisco International Airport this fall, more than six years  after pulling out of SFO because of what the airline said were unacceptable  flight delays, high costs and curbs on growth.  
Finally, those issues have been resolved, Southwest Chief Executive  Officer Gary Kelly said Thursday, prompting the airline to return to SFO with a  still-unannounced roster of destinations and a promise of cheap, as yet  unspecified introductory fares.  
When Southwest returns this fall, it will begin with at least 14 daily  departures and a mix of short, medium and long flights, he said.   
Southwest will continue to serve Mineta San Jose International Airport,  where it operates 76 daily departures, and Oakland International Airport, where  it has built a strong following and has 142 daily departures. Indeed, Southwest  will continue to expand in those airports, "especially Oakland,'' Kelly said,  "where we will be getting four more gates this year.''  
Of the return to SFO, Kelly said, "I'm very excited. We are the largest  intra-California carrier. San Francisco is by far the largest airport we don't  serve. It is a very attractive destination for our customers.''  
SFO's director, John Martin, praised the return of Southwest, easily the  nation's most profitable airline, with 122 consecutive profitable quarters. The  Dallas carrier pulled out of SFO in March 2001, when it operated 14 daily  departures and has since, in Kelly's accounting, doubled in size nationally.  
"We're very pleased to have Southwest back at SFO,'' Martin said. "It's  good for the customer, especially in San Francisco and San Mateo counties. It  will create a more competitive fare environment.''   
Last month, low-cost carrier JetBlue Airways said it will start service  from SFO May 3 with flights to New York's John F. Kennedy airport.  
"Southwest, JetBlue and Virgin America (still awaiting government approval  to fly) are all seeing that there are opportunities at SFO. Fares to some  destinations have been so high, there is untapped potential,'' Martin said.  
SFO has been pursuing low-cost carriers since the dot-com meltdown and  terrorist attacks of 2001 drove away nearly a third of its business, but has  had spotty success. AirTran Airways, Frontier Airlines and Midwest Airlines fly  from San Francisco, but ATA went bankrupt and Independence Air folded its  wings.  
Martin said he has been wooing Southwest for the last year and a half.  SFO's landing fees and other airport charges have been slashed 30 percent over  the past five years, Martin said, and that helped persuade Southwest to return.  
"John Martin has done a very fine job in getting the costs down,'' said  Kelly, adding SFO now has more gates available than in its busiest years, when  Southwest felt hemmed-in. Kelly also noted that SFO has installed improved  technology, helping aircraft to safely operate in bad weather.  
"I fully expect that the 'Southwest effect' will work very well (to lower  fares of other airlines), once we return to SFO,'' Kelly said.  
Southwest will operate out of Terminal 1, while JetBlue and Virgin America  (should it get permission to begin flying) will use gates in the International  Terminal.  
With business gradually recovering, Martin said, SFO is dusting off plans  to renovate Terminal 2 (the old international terminal), which has been closed  since December 2001, when the new International Terminal opened.  
E-mail David Armstrong at [email protected]. 
     
                This article appeared on page 
C - 1 of the San Francisco Chronicle
                    
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