Originally Posted by
Flyby1206
I wonder how significant NYC is to SWA. Yes, it is no doubt the biggest market in the country, but there is an incredible amount of competition and JFK is not really a domestic airport. The value of JB JFK ops would be higher to someone like AA who has a lot of international traffic, as opposed to SWA who is a domestic carrier.
I really dont think SWA is capable of turning into an international powerhouse. Their IT is so far behind the times, and even if they buy JB they will have a serious amount of work to do before they can take full advantage of a JFK hub.
I agree with pretty much all of that. But SWA needs into a big NYC airport big time and there just isn't enough of a presence anywhere, barring a very unlikely large asset sale at AA, other than JB at JFK. I'm sure they would rather have a massive LGA presence but if AA doesn't basically liquidate, and they're not going to, then all or large parts of JB at JFK are the consolation prize they are going to have to settle for.
JFK may not be as good a domestic airport at LGA, but its proven it can suffice in that role. I don't think SWA will attempt becoming an international powerhouse for a while. If they ever do they will be absolutely crushed unless they time it perfectly again to when multipile legacies are on the ropes and they have another lucky multibillion dollar hedge bet, etc. For now though, gaining a sizeable foothold in the world's most important domestic market is the next step in their manifest destiny they simply can't afford to pass up. Growing the "near international" aka pseudo international presence JB brings to nicely suppliment what AT brought is just icing on the cake.
You make a good point about AA. SWA's need to want ratio for a large NYC presence right now is probably around 50:50, while AA's is 90:10, with or without a US merger. AA needs it more and sooner, but I can't see SW letting it go without a fight and its hard to imagine either walking away without making some level of the gains they each need. However they both do it.