Some observatons from others and myself about the decision:
1. Last 3 new cities announced have been UAL hubs....coincidence? Things that make one go hmmmm
2. Previously to 911, low cost carriers weren't courted by SFO airport authorities....fast forward to now and as GK said, new management, more cost conscious, LOTS OF PEOPLE with access to large sums of money and that won't come across the bay to OAK or SJC to fly....they would like us now and in a big way...other LCCs are in the mix and that generates more revenue for the airport....they are relearning the value of the SWA effect that has been created by other LCCs coming into their airport...wise move..."make SWA a deal" and I think they have.... ...we'd be foolish to ignore such a large population base.
3. Weather/ATC delays were problems in PHL....those have been minimized when folks said they couldn't....the same challenges exist in SFO...are they fixed? We'll see but obviously folks with a lot more information on the "big picture" than anyone of us believe it is worth the risk....we're getting more gates in PHL and I suspect there are some options for further growth in SFO if SWA needs it.
4. SWA needs places to put airplanes...we have more on the way and the more options in terms of cities and city pairs to choose from, well it makes sense.
5. We are limited in growth at OAK right now....with the new gates it could be argued it won't grow much beyond that....not to mention to relieve some of the dependence on one airport to handle such large traffic requirements....SJC is the only relief....now SFO can fill that bill as will OAK & SJC in return for SFO
6. How many passengers of the 10 million a month that visit the website don't buy because we don't fly into one of the most popular airports around? You and I don't because we know they don't fly there now....many folks aren't that connected & now that revenue will stay with SWA instead of going to UAL or other places...the most visited airline site in the world.
7. As someone said, this makes the backers of Virgin America realize that coming out of the gate there will be tough competition for the US customer with multiple LCC...this will alter their loads no matter how you look at it and may discourage some investings from continuing to sit there and do nothing
8. Lets Wall Street know GK isn't sitting still...did they say there were to be no new cities this year? Just unlikely he said but always a possiblity....this keeps the competition on their toes..."what will those boys at SWA do next? You can never say die with those guys."
9. Competition is good...even among airports in close proximity...SJC has been talking about jacking up landing fees...quite significantly due to some new construction bonds they wish to float the voters, expansion, etc. Guess who will have to pay the bill....when that got floated at SEA SWA fought back...talked about moving, talked about other airports, demanded accountability....what better way to keep those increases reasonable vs. exorbitant than to have a new airport, SFO to wave in SJC's face to say..."be careful...we have options guys." GK is adamant at holding down costs...landing fees are a part of that...we now have SFO lowering landing fees to a point that they are now attractive...are they lower than SJC? I suspect they may be but it would be interesting to find out.
10. Less traffic in to SFO than before....maybe not be significant but departure/arrival delays for SFO are below, with PHL immediately below those numbers. Interesting in the comparison in 2006.
Departures
Airport On time % Delay %
SFO 75.77 22.43
PHL 72.20 26.0
Arrivals
Airport On time % Delay %
SFO 70.43 27.55
PHL 70.42 27.59
Interesting nums...we make money at PHL...I think we'll do OK in SFO.
I think SWA will do just fine...again, so far GK and the gang are keeping us in the black and progressing well....oh, BTW, happy Valentine's Day to the employees from GK...every employee received $150 (minus uncle sam's share) from SWA as a way to say thanks for beating Lowcur's projection

that we would not meet our goal of 15% return on investment....You'll be receiving your's in the mail LC...thanks! Just joking my friend but the $150's going toward the wife for allowing me to post on FI...happy luv to all.