SW Execs Boast They'll Conquer Delta's ATL w/ Air Tran Merger (& get a/c for Hawaii)

[Voice Of Reason]

SW Execs Boast They'll Conquer Delta's ATL w/ Air Tran Merger (& get a/c for Hawaii)

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"Execs: Atlanta could be Southwest's top city

Posted: October 30th, 2010 12:35 PM
By DAVID KOENIG
AP Airlines Writer
DALLAS --
Southwest Airlines Co. executives say Delta's hometown of Atlanta could become Southwest's top city within a few years after the company buys AirTran Airways.
CEO Gary Kelly also said that Southwest likely will buy new, larger planes from Boeing that would allow it to fly to Hawaii. The airline will need federal approval to fly the long over-water route to Hawaii with the Boeing 737-800 aircraft.
Kelly and other Southwest officials talked about the company's plans at its annual media day on Thursday.
Hawaii would provide a plum destination for regular Southwest customers redeeming their frequent-flier credits, and Atlanta is a key market for business travelers.
Southwest doesn't fly to Atlanta right now, but AirTran operates about 200 flights a day there.
Executive Vice President Bob Jordan said Thursday that Southwest will augment AirTran's Atlanta service with flights to 20 or more cities where AirTran doesn't fly.
"It's easy to get to kind of 250-plus" daily flights while still being a distant second to Delta Air Lines Inc. in Atlanta, Jordan said.
Las Vegas is Southwest's top city, with 224 daily departures as of Aug. 15.
Kelly was a bit more guarded, saying he wasn't ready to predict that Atlanta will surpass Las Vegas and Chicago on the Southwest schedule, "but I think that's a fair guess."
That's assuming Southwest can keep AirTran's passengers. Some AirTran business travelers have groused online about the prospect of losing first-class seating and other perks not offered by Southwest.
Southwest made inroads against US Airways in Philadelphia and is taking on United in Denver. Now it will go head-to-head against Delta, the world's second-largest airline.
"You would assume that there is no way they would just sit back and do nothing," Jordan said. "This is going to be a fight."
Southwest announced last month it would buy AirTran Holdings Inc. for $1.4 billion.
The airline also gave more details about its partnership with Mexico's Volaris.
Beginning Nov. 12, travelers will be able to book travel to Mexico from about 20 U.S. cities served by Southwest. The cross-border flights will be operated by Volaris from Los Angeles, Oakland and San Jose, Calif.
And the Dallas-based airline set a price of $5 per flight for onboard Internet access. There's still no way, however, for customers to see on Southwest's website whether their plane will be among those outfitted for WiFi. Southwest says it will notify passengers by email if their flight is equipped with WiFi. It plans to have WiFi on 60 planes by year-end.
Kelly said the company expects to raise $5 million to $10 million per year from its WiFi service. He said user rates are low, but customers will come to expect the service, and Internet access will open up other forms of in-flight entertainment. " --Airport Business
http://www.airportbusiness.com/online/printer.jsp?id=40511
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[mach none]

Small bites of that apple my friend or you will choke.

 

[StopNTSing]

Thanks for the hype, but where do you get "SW Execs Boast They'll Conquer Delta's ATL w/ Air Tran Merger" out of quotes from the article like this: "It's easy to get to kind of 250-plus" daily flights while still being a distant second to Delta Air Lines Inc. in Atlanta, Jordan said.

There's plenty of room for both airlines in the A-T-L! :beer:

 

[Flying the Line]

Since Delta couldn't kill Airtran, they will probably wipe the floor with Southwest. Or maybe SWA will just open up 300+ waffle houses' to dominate ATL.

 

[Erlanger]

Before Southwest can brag about anything they'll do in ATL, they'd better take care of Airtran's business class people.

http://www.bizjournals.com/milwauke...cpc&utm_source=twitterfeed&utm_medium=twitter

 

[Flying the Line]

They might have been the difference for Airtran, but look at SW's track record for profits. Pretty telling, isn't it.

 

[cole]

The group claims to have gathered 403 petition signatures from AirTran frequent fliers, 94 percent of whom say they'll switch to another carrier if Southwest (NYSE: LUV) carries out its plan to retrofit AirTran planes to conform to Southwest's low-cost, egalitarian passenger standards.


Read more: AirTran fans beg Southwest to keep biz class | The Business Journal
Every pax counts, but I don't think this will be a huge problem!

 

[Flying the Line]

I'm not saying SWA will be making the right move or not with regards to these folks or not, I'm simply pointing out that SWA has not needed a busisness or first class to make money.

 

[Dan Roman]

I'm surprised nobody has made the following observation. Isn't one of SWA's major strengths the fact that they don't charge for bags? That has been a major strength for them, if Delta thinks SWA is making major inroads in ATL, what's to stop DAL from doing the same? Given the same free bags deal on DAL I'm sure SWA would have a much more difficult time competing. People fly LCC's because of the perception they are getting a deal, if that goes away, I would think people prefer the full service airlines if the price is the same.

 

[Skybus]

I would think people prefer the full service airlines if the price is the same.[/QUOTE

"Full Service" Hahahahahahahah!!

Does that "full service" include the attitude that so often is included? Once upon a time I may have accepted that comment. Today, the line is very blurry and unless you are an ultimate elite flyer, and then even sometime, I really don't think the average Business Man Bob would agree with your "full service" statement.

 

[PCL_128]

I'm surprised nobody has made the following observation. Isn't one of SWA's major strengths the fact that they don't charge for bags? That has been a major strength for them, if Delta thinks SWA is making major inroads in ATL, what's to stop DAL from doing the same? Given the same free bags deal on DAL I'm sure SWA would have a much more difficult time competing. People fly LCC's because of the perception they are getting a deal, if that goes away, I would think people prefer the full service airlines if the price is the same.

SWA was doing just fine before the "bags fly free" campaign. I doubt they'll have any problems if DAL were to get rid of bag fees. DAL would sure lose a ton of revenue, though.

 

[minrest]

Why would SW need new (bigger) airplanes in order to fly to Hawaii? The 700 works just fine and in fact is better suited for Hawaii than the 800/900, especially out of OGG or SNA.

 

[CaptainKiwi]

more seats = better CASM
800 CASM is lower than the 700

 

[Ben Franklin]

more seats = better CASM

Why don't they just buy up some new 747-8's then?

 

[minrest]

more seats = better CASM
800 CASM is lower than the 700

True, but given that SWA will cram so many seats in the 800, it will probably be severely weight restricted, especially in the Winter months. The 700 is already in use by several airlines and can fly out of a 7,000' strip fully loaded with the tanks topped off.

 

[737tanker]

given that SWA will cram so many seats in the 800

SWA is planning on 175 seats in the -800, I don't think that is cramming seats.

 

[higherflyer]

Why don't they just buy up some new 747-8's then?

Because the overhead panel has too many pushbuttons and not enough antique switches. The SWA pilots will be unable to adapt since the 747-8 doesn't look like a 737-200.

 

[BILL LUMBERG]

SWA is planning on 175 seats in the -800, I don't think that is cramming seats.

You think so?? As many seats as a 757 and that's not cramming them in?? C'mon....

 

[scoreboardII]

Uh, Bill, SWA don't do business class so no, it's not cramming them in.

 

[StopNTSing]

You think so?? As many seats as a 757 and that's not cramming them in?? C'mon....

When was the last time you sat in the cabin of a SWA 737? You might just be surprised at the seat pitch compared to Delta coach.

 

[seerickyfly]

Im not sold on this ATL is so damm good city. Most of the pax are connectors because DAL and AAI hub there. I mean, is like ATL bigger tham NY? BOS? PHL? population wise? No. How many ATL customers are originating? Travelers hate to connect there too.

SWA is buying a hub and spoke airline but still claims they are not. Yeah right. I see a short term increase of flights for SWA in ATL but over the long term they will realise its just another STL situiation. My .02 worth.

 

[PCL_128]

ATL is the largest city in the South. Lots of O&D traffic. And AirTran is far from a hub and spoke carrier. Over half of our flights never touch Atlanta.

 

[minrest]

SWA is planning on 175 seats in the -800, I don't think that is cramming seats.

Sorry, didn't mean to offend you with the use of the word "cramming."

Perhaps I should say that SWA will put a "a lot of seats" in that plane and that equates to more weight than say an 800 with only 150 seats. More payload equals less fuel at the gate and higher burn getting to the critical point.

 

[seerickyfly]

ATL is the largest city in the South. Lots of O&D traffic. And AirTran is far from a hub and spoke carrier. Over half of our flights never touch Atlanta.

Not according to independant studies. Less than a third is originating. ATL is 33rd on the list in pop, behind ELP, HOU, BWI, DAL, FTW, AUS, JAX, CLT, CMH, SJC, DET, SAT, NY, BOS, PHL, SFO, MEM, SEA, MKE, ect ect ect....

I just dont think its the golden nugget its played out to be. Largest in the south???? Whats the south in your world? Georgia?

 

[FlyinGuy]

Sorry, didn't mean to offend you with the use of the word "cramming."

Perhaps I should say that SWA will put a "a lot of seats" in that plane and that equates to more weight than say an 800 with only 150 seats. More payload equals less fuel at the gate and higher burn getting to the critical point.

Apparently you have not seen how many of our passengers came straight from the buffet line!! 200 pound average for pax weight....yeah right! From my calculations the boeing has no trouble lifting the double wides we put in there so weight is not a problem.

 

[GuppyWN]

SWA is buying a hub and spoke airline but still claims they are not. Yeah right. I see a short term increase of flights for SWA in ATL but over the long term they will realise its just another STL situiation. My .02 worth.

WN is the biggest carrier in STL. If ATL turns out like STL......... I'm down with that!

Gup

 

[Z_Pilot]

All very interesting moves by Southwest.
What bamboozles me is that they are aggressively moving away from their successful business model by:

-Acquiring other airlines
-Acquiring other aircraft types (717s and talk of a "larger" airplane as referenced by OP's article)
-Moving into primary / largest airports in a metro area (EWR, ATL, DEN) instead of focusing on reliever airports

Southwest is going to be just another legacy carrier in 10 or 15 years with no first class.

 

[scoreboardII]

I think you need to subtract 11-16 years from your estimate.

 

[RedDogC130]

All very interesting moves by Southwest.
What bamboozles me is that they are aggressively moving away from their successful business model by:

-Acquiring other airlines
-Acquiring other aircraft types (717s and talk of a "larger" airplane as referenced by OP's article)
-Moving into primary / largest airports in a metro area (EWR, ATL, DEN) instead of focusing on reliever airports

Southwest is going to be just another legacy carrier in 10 or 15 years with no first class.

A company that does not adapt to the changing world it operates will not survive. SWA is just changing within the world it operates.

 

[Full of LUV]

A company that does not adapt to the changing world it operates will not survive. SWA is just changing within the world it operates.

What's funny is it's "changing" to adapt to the world is supposedly so despised just a few short years ago....