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SWA to add up to 50 new destinations over the next few years as it continues to grow.

HowardBorden

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Southwest Airlines chief executive Gary Kelly said today that the airline has an opportunity to add up to 50 new destinations over the next few years as it continues to grow.

?We have a very exciting opportunity over the next few years,? Kelly told an audience of more than 100 people at the company?s annual shareholder meeting today in Dallas. ?With the repeal of the Wright Amendment, we have a chance to grow beyond what we?ve already announced.?

He was referring to the expiration on Oct. 13 of flight restrictions under the Wright Amendment, which will let airlines at Dallas Love Field fly nonstop to any other U.S. airport. The Dallas-based airline leases 16 of the 20 gates at Love Field, with 12 active now and four that will open by Oct. 13.

In February, Southwest said it plans to start nonstop service from Dallas Love Field to 15 cities after Oct. 13, but it has not yet announced the number of flights or pricing. The airline also has said it plans to fly to its first international destinations (taking over service from its AirTran Airways subsidiary) starting with Aruba, Nassau in the Bahamas, and Montego Bay, Jamaica, from several cities on July 1.

Southwest still won?t be able to fly nonstop to international destinations from Love Field ? even after Oct. 13, but the airline will offer ?plenty of international destinations? from Love Field with a connecting stop, he said.

Southwest will announce new initiatives in 2015 and 2016, Kelly said today. ?We have more opportunities over the next five years than we have planes,? he said.

Last year, Southwest saw sold revenue growth and this year is looking to be even better, Kelly said. The airline reported a record net profit for the first quarter and April revenue trends are strong, he said.

?For as big as 2013 was, 2014 is bigger,? Kelly said. ?It is a monumental year for Southwest Airlines. In 2015, all aircraft flying will be in Southwest livery and all employees will be in Southwest uniforms and badges.?

The carrier plans to focus first on launching international flight service on July 1 and then completing the integration of Air Tran into Southwest by the end of the year.

Southwest also today increased its quarterly shareholder dividend by 50 percent to 6 cents per share from 4 cents per share. And it launched a new $1 billion share repurchase program after its previous $1.5 billion program finished last week.

http://aviationblog.dallasnews.com
 

redflyer65

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1 BILLION dollar stock repurchase and an increase of the dividend by 50%.

Add in the new destinations and things are looking interesting. I'll feel better when those routes are on the schedule and we have planes in the air. Looking a little more promising.
 

CesnaCaptn

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When Gary said new destinations, is he speaking of 50 cities not currently served by Southwest or is he speaking of 50 new routes, as in DAL-LAX?
 

Skyboy722

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Well, he said destinations. But that, of course, makes no sense at all because he also said that ASM growth over that period would be in the 3% range, which is roughly what you accomplish by replacing the remaining 717s with 800s.

He also said "opportunity for......." Which is GK speak for "enormous load of bullsh!t."
 

BILL LUMBERG

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How about a Pilot contract first Gary?
 

Dan Roman

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Southwest Airlines chief executive Gary Kelly said today that the airline has an opportunity to add up to 50 new destinations over the next few years as it continues to grow.

?We have a very exciting opportunity over the next few years,? Kelly told an audience of more than 100 people at the company?s annual shareholder meeting today in Dallas. ?With the repeal of the Wright Amendment, we have a chance to grow beyond what we?ve already announced.?

He was referring to the expiration on Oct. 13 of flight restrictions under the Wright Amendment, which will let airlines at Dallas Love Field fly nonstop to any other U.S. airport. The Dallas-based airline leases 16 of the 20 gates at Love Field, with 12 active now and four that will open by Oct. 13.

In February, Southwest said it plans to start nonstop service from Dallas Love Field to 15 cities after Oct. 13, but it has not yet announced the number of flights or pricing. The airline also has said it plans to fly to its first international destinations (taking over service from its AirTran Airways subsidiary) starting with Aruba, Nassau in the Bahamas, and Montego Bay, Jamaica, from several cities on July 1.

Southwest still won?t be able to fly nonstop to international destinations from Love Field ? even after Oct. 13, but the airline will offer ?plenty of international destinations? from Love Field with a connecting stop, he said.

Southwest will announce new initiatives in 2015 and 2016, Kelly said today. ?We have more opportunities over the next five years than we have planes,? he said.

Last year, Southwest saw sold revenue growth and this year is looking to be even better, Kelly said. The airline reported a record net profit for the first quarter and April revenue trends are strong, he said.

?For as big as 2013 was, 2014 is bigger,? Kelly said. ?It is a monumental year for Southwest Airlines. In 2015, all aircraft flying will be in Southwest livery and all employees will be in Southwest uniforms and badges.?

The carrier plans to focus first on launching international flight service on July 1 and then completing the integration of Air Tran into Southwest by the end of the year.

Southwest also today increased its quarterly shareholder dividend by 50 percent to 6 cents per share from 4 cents per share. And it launched a new $1 billion share repurchase program after its previous $1.5 billion program finished last week.

http://aviationblog.dallasnews.com


You do realize this is negotiating 101....put out the carrot before contract talks?
 

General Lee

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Are there anymore isolated West Texas towns you guys could go to from Dallas Love? How about Pecos or Ft Stockton? How about nonstop to Las Cruces, NM? Awesome! Go flat for those!



Bye Bye---General Lee
 

fr8doggie

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Yes but can I get a sundae?
 

daviator

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Yawn, stockholders meeting. Tell the minions what they like to hear. Hopefully, new destinations will actually happen. Until the schedule come out don't get excited.
 

redflyer65

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I agree Daviator.

There are plenty of places we don't go, so there is definitely room for growth.

More international. Consider larger cities in Mexico and Canada, more Caribbean. Alaska will be a given and then Hawaii down the line.
 

scoreboardII

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Here's my take after hearing this at a Message to the Field and reading him state it now three times and how he follows up the question.

He means 50 destinations OUT OF DAL.

Think about it, there is no way SWA will start flying to 50 more N America destinations that are not already being flown. We are leaving AT destinations and our own like Jackson MS.

He is being very coy and misleading when he speaks of these "New Destinations", he refuses to speculate where, he most likely means 50 destinations out of DAL. This makes sense in regard to the WA going away.

This is exactly the same tone of message delivered during the -800 talks regarding going to HI. "we need the -800 to go to HI, where else would we go with it?" (direct quote from chief of training). Next thing you know, the "rumor" morphed into must have the -800 to go to HI. And now we fly the -800 for the same rates, and don't go to HI.

Doing the counter math, what international destinations could we add that we don't have, 5 in Canada maybe? 5 more South of Mexico? No way 50 international destinations in North America.
 
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737tanker

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North America includes the US, Canada, Mexico, Central America, and all of the Caribbean. I'm sure that when Gary is talking about 50 new destinations for SWA he is including places that AirTran is going now as new destinations for SWA.
 

General Lee

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Yes but can I get a sundae?

Not enroute. Funny thing is, you know it's true on all of the Legacy INTL flights. They offer desserts to First or Business class pax, and ice cream sundaes are usually included. I don't eat them every trip, but when I do, it tastes FANNNNTASTIC, especially over Greenland heading West.



Bye Bye---General Lee
 
Last edited:

General Lee

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Here's my take after hearing this at a Message to the Field and reading him state it now three times and how he follows up the question.

He means 50 destinations OUT OF DAL.

Think about it, there is no way SWA will start flying to 50 more N America destinations that are not already being flown. We are leaving AT destinations and our own like Jackson MS.

He is being very coy and misleading when he speaks of these "New Destinations", he refuses to speculate where, he most likely means 50 destinations out of DAL. This makes sense in regard to the WA going away.

This is exactly the same tone of message delivered during the -800 talks regarding going to HI. "we need the -800 to go to HI, where else would we go with it?" (direct quote from chief of training). Next thing you know, the "rumor" morphed into must have the -800 to go to HI. And now we fly the -800 for the same rates, and don't go to HI.

Doing the counter math, what international destinations could we add that we don't have, 5 in Canada maybe? 5 more South of Mexico? No way 50 international destinations in North America.

50 more cities out of DAL Love? Darn it, you really did need those other two gates...


Bye Bye---General Lee
 

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