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Southwest May Start Red-Eye Flights as AirTran Is Absorbed
By Mary Schlangenstein - Jan 19, 2012
Southwest Airlines Co. may offer its first red-eye flights, the overnight trips pioneered decades earlier by larger rivals, as it integrates operations with AirTran Holdings Inc.
As many as 15 of the flights now flown by AirTran may become part of Southwest’s schedule once the smaller airline’s network is absorbed, Southwest Chief Commercial Officer Bob Jordan said today. He said the red-eye service generally is profitable at AirTran, which was acquired in May.
“I wouldn’t rule out some modest red-eye flying in the mix,” Jordan said on a conference call with reporters. “Nothing dramatic, 10 to 15 flights.”
Southwest, the largest discount airline, has never operated overnight flights because of its longtime focus on shorter, point-to-point and high-frequency trips. The Dallas-based carrier also flew to few eastern U.S. airports until 2004, so overnight flights from western cities didn’t make sense.
“If it makes money for Southwest, they absolutely should do that,” said Henry Harteveldt, chief research officer at Cambridge, Massachusetts-based Atmosphere Research Group. “It allows the airline to increase the efficiency of its fleet, generate revenue and serve the customer well.”
Merger Lessons
The move also shows Southwest is “approaching the merger wisely by learning from AirTran what has worked well and made money for them,” he said. JetBlue Airways Corp. and Virgin America Inc. are among discount airlines with transcontinental red-eyes.
AirTran’s current overnight offerings include nonstop trips such as Las Vegas to Atlanta, according to the carrier’s website.
Larger competitors such as AMR Corp (AAMRQ).’s American Airlines have long operated red-eye flights to help connect business markets such as Los Angeles and New York. An evening trip from the west coast can reach New York in time for the next workday.
After cutting some evening flights that weren’t making money in recent years, Southwest may restore some of that service, Jordan said. The additions would be part of Southwest’s plans to boost productivity and revenue after losing half of its cost advantage over competitors.
“As we rework the network and as we get some economic improvement in 2012, it does look like there’s a chance to stretch the day out a bit and add some flights toward the end of the day,” Jordan said.
Southwest expects to win regulatory approval this quarter to combine operations with AirTran, Jordan said. By year’s end, 13 of AirTran’s Boeing Co. 737s should be converted to the Southwest brand, said Jordan, who is also AirTran president.
To contact the reporter on this story: Mary Schlangenstein in Dallas @Bloomberg.net
Godspeed!
The OYSter
By Mary Schlangenstein - Jan 19, 2012
Southwest Airlines Co. may offer its first red-eye flights, the overnight trips pioneered decades earlier by larger rivals, as it integrates operations with AirTran Holdings Inc.
As many as 15 of the flights now flown by AirTran may become part of Southwest’s schedule once the smaller airline’s network is absorbed, Southwest Chief Commercial Officer Bob Jordan said today. He said the red-eye service generally is profitable at AirTran, which was acquired in May.
“I wouldn’t rule out some modest red-eye flying in the mix,” Jordan said on a conference call with reporters. “Nothing dramatic, 10 to 15 flights.”
Southwest, the largest discount airline, has never operated overnight flights because of its longtime focus on shorter, point-to-point and high-frequency trips. The Dallas-based carrier also flew to few eastern U.S. airports until 2004, so overnight flights from western cities didn’t make sense.
“If it makes money for Southwest, they absolutely should do that,” said Henry Harteveldt, chief research officer at Cambridge, Massachusetts-based Atmosphere Research Group. “It allows the airline to increase the efficiency of its fleet, generate revenue and serve the customer well.”
Merger Lessons
The move also shows Southwest is “approaching the merger wisely by learning from AirTran what has worked well and made money for them,” he said. JetBlue Airways Corp. and Virgin America Inc. are among discount airlines with transcontinental red-eyes.
AirTran’s current overnight offerings include nonstop trips such as Las Vegas to Atlanta, according to the carrier’s website.
Larger competitors such as AMR Corp (AAMRQ).’s American Airlines have long operated red-eye flights to help connect business markets such as Los Angeles and New York. An evening trip from the west coast can reach New York in time for the next workday.
After cutting some evening flights that weren’t making money in recent years, Southwest may restore some of that service, Jordan said. The additions would be part of Southwest’s plans to boost productivity and revenue after losing half of its cost advantage over competitors.
“As we rework the network and as we get some economic improvement in 2012, it does look like there’s a chance to stretch the day out a bit and add some flights toward the end of the day,” Jordan said.
Southwest expects to win regulatory approval this quarter to combine operations with AirTran, Jordan said. By year’s end, 13 of AirTran’s Boeing Co. 737s should be converted to the Southwest brand, said Jordan, who is also AirTran president.
To contact the reporter on this story: Mary Schlangenstein in Dallas @Bloomberg.net
Godspeed!
The OYSter
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