SWA Growth in PHX/MDW '05 (even more!)

[chase]

Southwest Airlines Adds Flights in Chicago and Phoenix
Monday November 22, 11:00 am ET

CHICAGO and PHOENIX, Nov. 22 /PRNewswire-FirstCall/ -- Southwest Airlines (NYSE: LUV - News) is giving its Customers five more things to be thankful for this holiday season -- five new nonstop flights beginning April 3, 2005. These new nonstop flights follow Southwest's schedule enhancements announced last week and reinforce the carrier's commitment to expanding at Chicago Midway. Additionally, four of the new flights are enhancements to Southwest's Phoenix operation. To take advantage of this new Southwest service and great low fares, visit: http://www.southwest.com/jp/luvhome.shtml?src=PR_MDW2_112204

"Chicago is our number one focus at this point and these new flights are Southwest's response to the need for reliable, low fare service at Chicago Midway," said Gary Kelly, Southwest's Chief Executive Officer. "Southwest is dedicating our Boeing deliveries in the first quarter of next year to these new routes."

Beginning April 3, 2005:

• One additional daily nonstop roundtrip flight between Chicago Midway and Hartford (for a to total of three daily nonstop departures).
• Two additional daily nonstop roundtrip flights between Chicago Midway and Phoenix (for a total of eight daily nonstop departures).
• One additional daily nonstop roundtrip flight between Phoenix and Seattle/Tacoma (for a total of three daily nonstop departures).
• One additional daily nonstop roundtrip flight between Phoenix and Portland (for a total of three daily nonstop departures).

Phoenix is Southwest's second largest operation in terms of daily departures. Southwest operates 190 daily nonstop departures at Phoenix Sky Harbor and has more than 4,600 Employees based in Phoenix. With today's announcement, the airline will have 194 daily nonstop departures to 40 cities with direct or connecting service to 16 cities.

Beginning March 17, 2005 (Previously Announced):

• One new daily nonstop roundtrip flight between Chicago Midway and Norfolk, Va.
• One new daily nonstop roundtrip flight between Chicago Midway and Salt Lake City.
• One additional daily nonstop roundtrip flight between Chicago Midway and Orlando.
• One additional daily nonstop roundtrip flight between Chicago Midway and Phoenix.
• One additional daily nonstop roundtrip flight between Chicago Midway and Baltimore/Washington.

Additional Nonstop Chicago Midway Service (Previously Announced):
* Two additional daily nonstop roundtrip flights between Chicago Midway and Orlando starting January 16 and February 4, 2005.
* One daily nonstop roundtrip flight between Phoenix and Burbank starting January 16.
* Two additional daily nonstop roundtrip flights between Chicago Midway and Fort Lauderdale/Hollywood starting January 16 and February 4, 2005.
* Two additional daily nonstop roundtrip flights between Chicago Midway and Manchester starting January 16 and February 4, 2005.
* One additional daily nonstop roundtrip flight between Chicago Midway and Las Vegas starting February 4, 2005.
* One additional daily nonstop roundtrip flight between Chicago Midway and Raleigh-Durham starting February 4, 2005.
* One additional daily nonstop roundtrip flight between Chicago Midway and Tampa starting February 11, 2005.
* One additional daily nonstop roundtrip flight between Chicago Midway and Los Angeles International starting March 4, 2005.
* One additional daily nonstop roundtrip flight between Chicago Midway and Oakland starting March 4, 2005.
* One additional daily nonstop roundtrip flight between Chicago Midway and starting March 4, 2005.
* One additional daily nonstop roundtrip flight between Chicago Midway and Seattle starting March 4, 2005.
* One additional daily nonstop roundtrip flight between Chicago Midway and Providence starting March 4, 2005.
* One additional daily nonstop roundtrip flight between Chicago Midway and Philadelphia starting March 4, 2005.
* One additional daily nonstop roundtrip flight between Chicago Midway and Columbus starting March 4, 2005.

Southwest has 145 daily nonstop departures and more than 2,900 Employees based in Chicago. With today's announcement (and the previously announced service to begin in the first quarter of 2005), the airline will have 169 daily nonstop departures to 32 cities with additional direct or connecting service to 26 cities.
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When I get home I'll try to get a better picture but what might be surmised from all of these announced new flights is an increase in the planned deliveries for the 1Q05. In Jan SWA loses the remaining 5 -200s but receives (this is what I need to confirm) what had originally been announced as approximately 10 aircraft, this would equate to only a net gain of 5 aircraft.

Could there be a sped up delivery schedule from Boeing for some previously purchased aircrafts to add more than a net of 5? Maybe so but the sheer number of new flights that are to begin in 1Q05 I believe exceeds what "announced" new aircraft could fill. This might bode well for the rumor that is out there that SWA is in the final phases of acquiring "xx" 737s from unknown sources. Delaying the announcement may be part of the ploy of bidding on some of the ATA assets.

The strategy may run something like this...make a bid for ATA assets at a low ball offer but knowing they have a backup offer for another batch of 737s at a similar low ball offer...either way they know they have the assets to fly these new lines...if the bankruptcy judge likes the offer then we get new 800s at a pretty good price...if he he doesn't then SWA goes to plan B...take the leases of -300s as a block & start filling the void that is going to be felt if other carriers fall by the wayside. Growing oneself into great profitability is possible if we can add airplanes without adding overhead.

The training department has cleared their slates for increased training in 1Q05 for new hires & CAs.....lots of stars are lining up for this to all happen but again the ramblings of an FO aren't much to bet the farm on so don't....when you get the call that you're hired then you can worry about it but until hope the thread provides some lively speculation. Other discussions among management pilots indicate there a huge plans on the near horizon. Kelly appears to be making audibles at the line of scrimmage as things change weekly so don't be surprised at anything from Dallas in the way of "what ifs". All of that bodes well for those wishing to get on at Southwest.

 

[JayhawkDude]

American to delay aircraft purchases

DALLAS (AP) — American Airlines, struggling to make money despite high fuel prices and fierce competition, is delaying the delivery of 54 jetliners from Boeing (BA) between 2006 and 2010.
The move lets American delay $2.7 billion in spending through 2010, more than half of which was expected to occur in 2005-2007.

American, the nation's largest carrier, said Monday that it would delay taking 47 Boeing 737-800 jets by seven years and seven Boeing 777 aircraft by six years.

Instead, American said it would add only 777s in 2006, including one originally scheduled for delivery in 2007, to help expand international flights.



Question: how hard and how much lead time would it be for Boeing to convert these into SWA-style 737-700s?

 

[RJones]

"Question: how hard and how much lead time would it be for Boeing to convert these into SWA-style 737-700s?"

I doubt they would convert. Two ways to look at it ... 1. SWA take's them as -800's or 2. if they haven't been built yet they turn into -700's.

You got to think maybe Boeing has approached SWA about this. Should be interesting to see what develops.

 

[SWAdude]

Question: how hard and how much lead time would it be for Boeing to convert these into SWA-style 737-700s?

I have heard (from a very reliable source) that as long as it hasn't hit the assembly line it can be converted into a 700.

SWAdude

 

[JayhawkDude]

"Convert" is probably the wrong term. I mean how far out can they switch from building a -800 to a -700? One month? One year? Any ideas?

 

[SWAdude]

I understood the question as converting an 800 order to a 700.

When you upgrade at SWA you have lunch with the CEO. Fortunately Herb was still CEO and he informed us as long as Boeing hasn't began assembly of the aircraft then the 800 could become a 700.

SWAdude

 

[Cheesemo]

I have heard from several sources (all fit the rumor category, that extra a/c next year will come from a non-Boeing source, i.e. the used a/c market. Could/should be an interesting year!


Cheers