Originally Posted by
Angel
Southwest eyes international growth for 2012
Southwest Airlines could expand into international markets as early as next year, Chief Financial Officer Laura Wright said Thursday. The carrier will begin taking delivery of larger Boeing 737-800 aircraft in 2012, allowing efficient service on international routes "should we want to." Wright also noted that takeover target AirTran Airways has an extensive network in the Caribbean, bringing needed expertise in international service. "We're certainly going to learn a lot about those international markets with AirTran," she said.
HOW could this affect NKS' traffic ????
Source: ATA Smart brief.
Well...right now, Spirit isn't much of a threat to anyone. The airline is still relatively small and offers limited frequency to the markets we serve (of course, there are some exceptions). The big boys will let NK get away with flying a route here or there.
The problem I see down the road is if Spirit tries to grow their network to the point where it impacts the revenue generation of Southwest, JetBlue, AA, etc. At that point, those carriers have enough "tools in their arsenal" where they can engage NK in a prolonged fare war, and attempt to bleed NK's cash like no tomorrow. Nobody is doing that yet because everyone is conserving cash...but, when things turn around, and the time for growth is right, those other guys will seize the opportunity.
Remember, NK has a "go it alone strategy." We'll have to see how that strategy plays out without having partnerships like other airlines.