SWA going to MKE

[atpcliff]

Hi!

It is a LONG way from MKE to MDW, ESPECIALLY during rush hour.

We live in GRB, and it's 2 hours, almost all the time, to drive to MKE. ORD is under 3 hours with no traffic, and 3 1/2 with traffic. Once or twice, we flew out of MDW, and it is a NIGHTMARE. It is a MUCH longer drive to get to MDW, from anywhere up north.

My CEO has been hoping for YEARS that someone like SWA or AirTran will fly a lot into MKE. She was hoping that Midwest would merge with AirTran, but that fell through. This is the first real chance that many people who live in WI and MI will have their first chance to fly on a LCC to many parts of the US.

I hope AirTran and SWA both do well in MKE. I am also very sorry what is happening to Midwest. I think it is a crime that the gov't let NWA/DAL buy and control them. Legally, it was not a merger or NWA buying them, but, in reality, DAL now owns Midwest and is dismantling them. It sux.

cliff
NBO

 

[MSNFlier]

A long time, ago...

Just having a bit of fun...here's my post from December 20, 2006 in a thread discussing SWA's next cities (I think it was)...


Other than LA, might be worst 50 miles in the US...
Why wouldn't SWA come to MKE?

Even with Midwest's main ops there, MKE is still way underutilized, and it's a lot easier to get there from most anywhere in the Chicago area north of PWK east to Lake Michigan and west to I-90 than it is to MDW.

Let's go to the tape. Say you live in Waukegan, IL, or its environs - a fast-growing, generally wealthy area which likely generates plenty of customers for airlines

According the Mapquest, it's 50 miles to MDW from Waukegan, so you figure what? an hour or less? Not so fast my friend! Ever tried to actually drive that corridor, either through downtown Chicago and then out to MDW, or around on I-294? Most days, it's a total nightmare, even with the advent of open-road tolling. Easily a 1.5 to 2 hour drive from your front door to parking your car - so if you want to make sure you get to your gate on time, leave at least 3 hours before your flight. For ORD, give yourself at least 2 hours.

According to Mapquest it's 45 miles to MKE from Waukegan, all on 6 lane expressways with no tolls and nary a traffic jam. At 75 mph or more (common speeds on that portion of I-94), you can drive to MKE, park in the giant ramp directly connected to the terminal (currently charging $10/day with plenty of room to expand, by the way), go through security and be at your gate within 1.5 hours, no sweat.

I think a reasonable case can be made for SWA here because they could continue their huge presence at MDW, but also pick off customers on the north side of Chicago. Sort of "stealth-competing" with the legacy carriers at ORD for domestic routes while avoiding a direct fare war - something every carrier, including SWA would like to avoid. A northern front, if you will, in SWA's war on the legacies in a top three market. At the same time, Midwest would probably fold like a wet noodle on any directly competing routes from MKE.

Who knows? Just my humble two cents.

Fly safe,

 

[samballs]

It's going to be hard for Republic to compete against SWA in MKE!

 

[fam62c]

If Southwest isn't growing where are they getting all the extra capacity for MKE, MSP as well as building up some of their newer cities from the last few years? I'm not sure that MKE is big enough for two LCC's, there's only a few destinations from MKE able to support more than one carrier. With both SWA and AirTran MKE will be stealing some passengers from ORD and MDW so that may increase MKE traffic numbers as Chicago folks drive North for cheap fares. As these LCC's compete head-to-head more frequently it's going to get harder for anyone to have any kind of decent profit margin unless somebody gets knocked out of the game.

I wonder if TPG/NWA still think it was a good idea to buy Midwest. NWA was trying to fend of AirTran and now they will have AirTran and SWA to deal with in MKE and MSP and they have shrunk Midwest down to nothing. I don't get it.

 

[BUDDHA145]

It's going to be hard for Republic to compete against SWA in MKE!

Dont know what you really mean!!!
but
this could be the final dager for Midwest!!!and its employes...crap I'm so sorry.
uke: but then again the whole industry (Mainline, LCC, Regionals) love Cannibalism!!!!

 

[climbhappy]

MSN, home of the Badgers is the where the real excitement is... they were drinking pitchers by the lake at the student union on a tuesday morning at 1100am... Pilots paradise..

 

[Tejas-Jet]

"no way SWA will make it there...they don't know how to operate in cold weather"

Told to me by a flight Attendant when SWA started service into BWI in 1993 with flights to just 2 destinations...her airline had the most flights at BWI at that time.

 

[BUDDHA145]

It's going to be hard for Republic to compete against SWA in MKE!

I don't know why you compare Sw to Rep we're no even close yet!!!

A friend of mine make this funny joke!!:

"why fly Southwest when you can pay 100 bucks more to fly on the mighty 170 and get attitude from our FA's.... oh that is right, you get 2 cookies! Genius!":smash:

in a totall serius note this could be Midwest final dagger!!!

uke:management!!!

 

[jonjuan]

"no way SWA will make it there...they don't know how to operate in cold weather"

Told to me by a flight Attendant when SWA started service into BWI in 1993 with flights to just 2 destinations...her airline had the most flights at BWI at that time.

And you married her.

 

[Whataburger]

I'm thinking MKE to DEN, MDW, BOS, LAS, SNA, MCO, FLL. Start with 24 flights/day.

 

[General Lee]

Has SWA hedged on de-icing fluid?

Bye Bye--General Lee

 

[MSNFlier]

MSN & Memorial Union...

Climbhappy - Are you from MSN? I grew up there and went to UW for undergrad and law school. There is simply no better place in the world (to us UW Badgers) to drink a beer than the Memorial Union about this time of year. The wildlife is usually quite plentiful and happy that it's spring!

 

[airline#5]

AAI will turn tail and run...guarantee it. A slow, quiet reduction in flying in spite of recent announcements. Not enough $$$ on hand to punch it out with SWA over a long haul. The SW hedges will be paying off for years to come, even while they are gone now. $ucks for weaklings like AAI, Midwest, etc., but hey that's Capitalism. Wouldn't change it for the world. Obama on the other hand...

 

[Colonel Savage]

AAI will turn tail and run......

I guess being at "airline #5" makes you an expert on airlines that "turn tail and run".

 

[firstthird]

A The SW hedges will be paying off for years to come, even while they are gone now.

if you mean that SWA will be paying money to settle our hedging debts, then yes, you are correct. if you mean that we're making money on hedges, you are dead wrong.

We would've made 30 million in the first quarter and instead lost 20, due to a 50 million real money hedge cost.

we have another 950 million that we owe over the next 3 years or so, about 250 a year plus a little after that. So, we don't start making money for the year until we make at least 250 million to pay off the hedging hangover. karma's a biatch and it is time for us to pay up for all the undercharging we did when we were making money on hedges.

didn't you wonder why airtran and jetblue both posted profits in the first quarter and SWA didn't. hedging. bad hedging.