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Southwest won.

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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 because SWA has always squeezed the nickels together and made the buffalo cry! For ATA its a no brainer. They can continue to operate although at a smaller size rather than have no light at the end of the AirTran rainbow. Code share with our company which now has 2800+ flights per day in the US and allows us both to make a small fortune together. They have the chance to recover in some form rather than to have nothing and shrink into a small charter operation back in INDY preserving more jobs in the long run. SWA has always had a great rapport with ATA. Most people outside of the two companies dont understand this at all. They were the first ones our company agreed to give multiple jump seats to and they gave them to us. This is just a small example but you get the drift. I think in time we will see some more very substantial agreements between to 2 of us that will surprise everyone. Time will tell. But hey what do I know? But I did stay in a Holiday Inn Express last nite! ;-)
 
Assistance? There are more elements in the big picture.

It's a strategic plan with much potential to benefit both ATA and SWA while limiting AAI's potental in Chicago, Dallas, and other areas. There's great potential, but who will benefit most remains to be seen.

Judging from chatter among residents near Midway, the partnership is a winner. Acquaintances in Maryland think the codeshare makes a nifty way to visit Hawaii. That is not a Wilson Poll, but this doesn't have to be a money waster. When Ty writes his book about swallowing his way up the career ladder, he can buy Y fares to make appearances on his book tour...


Here's the first marketing slogan:


More Destinations!
Great Fares!
Scab Free!
 
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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
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 ATA 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.
 
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Dude, ATA Captains were making like $48,000/yr. until the last contract. I know you could make more, but I think the term you guys used was "whore flying".

Take a look in the mirror you deush.
 
All hail Powderfinger, King Idiot of the Message Board.

Talk to us in 24 months, buddy, when you're on the street and on your knees.

With your winning ways and personality, though, I'm sure you'll be back in the right seat in no time.:cool:
 
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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.
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!
 
Jim,

I don't doubt that SWA will have fares lower than what is available at O'Hare. It wouldn't make sense not to. However, with no sizeable competitor now at MDW and with such an advantage in available seats, SWA may have an opportunity to raise fares to a price point higher than that of other airlines also operating from MDW. That would also make sense.

My only real point in this is that SWA entered into this deal only to help itself. It had to structure the deal to convince the bankruptcy court, the creditors, and the city that it is the best package for ATA. SWA is not concerned about ATA's or any competitor's interests in the least. That's how any airline and any business has to operate. That's not a bad thing. To think anything else, however, is to delusionally elevate SWA in your mind to some kind of fanciful airline industry fairy godmother.
 

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