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Atlanta Business Chronicle - 11:05 AM EDT Friday
Southwest on standby for Atlanta?

The nation's top low-fare carrier, and one that is experienced in ramping up where traditional carriers have scaled back, may come in for a future landing at Hartsfield-Jackson International Airport.

An executive with Dallas-based Southwest (NYSE: LUV) told reporters at an industry meeting in Europe that the airline might expand services if bankrupt Delta Air Lines Inc. decides to reduce flights. The executive said Southwest will be aggressive.

A Southwest spokesperson told Atlanta Business Chronicle today that Southwest's moves depend mostly on how Delta scales back.

"There's been no discussion of Atlanta whatsoever, but that doesn't mean it can't come up in the future," said Ed Stewart, Southwest senior director of public relations. "In terms of knowing what to expect with the [bankruptcy] filing, we're at the starting gate. We just don't know what Delta's going to do. It's a question that has no answers right now."

Right now, Atlanta travelers who want to fly Southwest and benefit from its low fares have to drive to Birmingham, Ala., the closet Southwest currently flies to Atlanta.

Southwest has come in before where traditional carriers have struggled and has found success with its low fares. When US Airways Group Inc. (OTCBB: UAIRQ) scaled back at Pittsburgh International Airport, Southwest swooped in. It began its Pittsburgh service in May 2004 with 10 daily flights from Pittsburgh to four destinations: Chicago Midway, Philadelphia, Las Vegas and Orlando. This fall, Southwest will add eight daily nonstop flights in Pittsburgh, bringing its daily total nonstop departures to 19. New markets include Tampa, Fla., and Phoenix.

US Airways, fighting to emerge from Chapter 11 bankruptcy, filed its plan of reorganization in June, and said it "remains on track to complete all regulatory and court requirements and to close on the merger" with America West Holdings Corp. by late September or early October. The plan was approved by its creditors on Sept. 12, one day after America West Holdings shareholders put their stamp of approval on plans to merge with US Airways.

Hartsfield-Jackson is already the hub of low-fare carrier AirTran Airways (NYSE: AAI), which is based in Orlando.

 

Southwest will "rule the skies" by 2012. They ALWAYS do a better job of hedging fuel costs and continually make a profit albeit while groing their business. My forecast is that most Legacy carriers will be scaled back to just overseas transporters with SWA as their feeder

 

WOW WEE
Thats a BOLD statement.

Great attitude though.........remember my friend
when you are number ONE there is ONLY one way to go
and thats DOWN.

If this will be true, can we start calling you'all Sky Nazis?

Signed
laughing in DFW

 

The Borg. Resistence is Futile.

Seriously, while I would caution all SWAers to maintain humility, there is one very important fact that everyone must consider. Over the years there have been several airlines "at the top", and as you pointed out, once there, the only place to go is down. What is different though, is that up until now, those who got the glory of ruling the roost always did so as a high cost producer taking advantage of high yields at that particular moment to support their tenuous position on top.
If and when SWA is King they will do it as the most efficient LOW COST producer, and as such could very well be in a position to dominate for years if not decades.

 

You have to work to remain "on top"/the best you can be. The differance is they know it.
As Herb used to say,"When you rest on your laurels, all you get is a thorn in the ass".

 

don't count on it. SWA is rapidly running out of profitable city pairs and as their growth slows, their expenses increase as workers age and must be paid more, etc.

also, their hedging dept is doing an outstanding job but how many 30 dollar barrels are they going to be getting next year or the year after or the year after? i can't see too many hedging companies writing any more of those contracts for a while.

also, steve forbes thinks fuel is going to crash sometime in the next year.

 

Any of you LCC pilots tempted to gloat over your good fortune better think twice while you're drinking company Kool-Aid, "whistling through the graveyard" in your mostly lower pay, five year-renewable employment contracts and marginal retirements. While your airlines are healthy, they have succeeded dumbing down pilot pay and retirement benefits with you all as willing accomplices. News flash: There are thousands of twenty-something RJ weenies living in their parents' attic chomping at the bit to do it for a fraction of your pay. And yes, SWA is maturing and is facing increasing pressure on labor costs and yes, fuel costs in the future. They are very successful, but Herb and his legacy ain't gonna live forever. I hope for the SWA guys, it does. The rest of the LCCs will follow suit as they mature and employees increasingly want a piece of the prosperity and costs will go up and growth will stop. In the meantime, the legacy carriers will clear their balance sheets in ch. 11 and come out the other side with little debt, no pension obligations, LCC pay/benefit cost structures and huge networks...maybe more mergers. They will become more like you in their cost structure only they'll have more RJs on domestic routes and big jets on highly profitable international routes. Maybe some or all legacy carriers will go the way of the dinosaurs, or maybe they'll eat your lunch and you'll be furloughed and be forced to go back to active duty military, corporate, or regional flying...or a day job in your college major. Your jobs replaced the legacy jobs and regionals could replace yours. It's all a cycle. Enjoy it while it lasts...this career is a roll of the dice and nobody is immune from hard times.

 

Yeah, what he said. B767flyr's post is the best assessment of todays situation I've read in a while. This industry is a mess with hungry pilots willing to eat or be eaten. Some sort of regulation is required for the industry to truly prosper and stabilize. I don't think it is coming soon however

 

Will not happen. SWA might become a true powerhouse, but the fuel hedging is starting to dwindle. SWA is going to have their first quarterly loss in the not to distant future. Industry leading pay + high fuel costs = trouble. Even my "regional" airline made more money the the first quarter of 2005.