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Jim,Jim Smyth said:If you have read my posts in this thread you will see that I said it is to our best interest to protect our home turf. That means securing one of our biggest and very profitable base. So rather than let Airtran or JB or some other LCC come in we are providing money to ATA to help them out of there situation which benefits us both. We would have never done it if there wasnt money making potential in there
Delville, you dont understand the way we work and it seems that the more I try to explain to you the more you get confused. Have you ever been to Love field? I think the fares there are alot cheaper than DFW and there is no competetion at DAL other than the automobile!Delville said:Jim,
I completely agree with you that this is about protecting SWA's home turf. However, that is all that it is about. SWA is not "providing" money to SWA for nothing. SWA is receiving gates in exchange for paying ATA however many millions of dollars.
If SWA is interested in helping ATA, does that mean they will set their MDW airfares for fifty dollars more than ATA's fares in order to funnel business to ATA? I think not. The way SWA makes money in this deal is because now it will not have to engage in a fare war with AirTran at MDW. SWA may, in fact, be able to raise fares at MDW due to the semi-monopoly situation they have created for themselves there.