SWA set to triple DEN flts
04-26-2006, 02:28 PM
#1
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SWA set to triple DEN flts
CHRIS WALSH
Rocky Mountain News (Denver, CO)
Southwest Airlines is preparing to as much as triple its daily departures from Denver International Airport, reflecting the carrier's intentions to grow rapidly in its newest market.
The low-cost airline appears close to receiving final Federal Aviation Administration approval on a proposal to fly as many as 60 daily nonstop departures from Denver. Southwest, which launched service at DIA in January, currently offers 20 daily flights from the airport.
Southwest's proposal signals that the company is bullish on its potential in Denver, said company spokeswoman Melanie Jones.
"This is a response to the success we're seeing there, and it's in anticipation of growth so when the time is right we have this step in place," Jones said, adding that the carrier has not announced specific plans for any new service.
Dallas-based Southwest last year received federal approval to start service at DIA and was told it would have to go through the process again if it planned to add more than 40 flights.
Airlines that want to start service or significantly increase flights at a given airport must meet certain environmental regulations. The FAA has issued a recommendation approving Southwest's latest proposal, saying the new flights conform with the regulations. The agency is now accepting public comment on the issue.
Southwest has said all along that it sees significant potential in Denver, and industry experts have been expecting Southwest to expand here sooner rather than later.
Last week, for instance, a Bear Stearns analyst downgraded shares of Denver-based Frontier Airlines, saying the carrier will face increased competition from Southwest.
"We believe expansion plans in Denver are aggressive and that Southwest capacity will more than triple in the next two years," analyst David Strine wrote in a research note to clients.
Experts say Southwest could boost flights from DIA to current destinations but also will look to add service to new cities such as Oakland, Calif.; Houston; Orlando, Fla.; and Nashville, Tenn.
Southwest is expanding rapidly nationwide as other airlines become more competitive. The carrier will add 33 planes to its fleet this year and has 140 planes scheduled for delivery between 2007 and 2012. Much of that growth likely will come at the expense of other carriers, said Evergreen-based aviation consultant Mike Boyd.
Still, he said, Southwest faces a tough battle in Denver. Both United and Frontier, the city's largest carriers, are fighting aggressively for passengers and are well-known in Denver. Boyd also argues that, price being equal, those two carriers offer a better product than Southwest.
"The last time I checked, Southwest was not included on the tablets Moses brought down from Mount Sinai," Boyd said. "So there's no guarantee they will be successful."
Consumers could be the biggest winners in any Southwest expansion. The carrier already has helped push down fares at DIA since its arrival less than four months ago. During the first week of April, for instance, fares at DIA were down 18 percent from a year earlier, even as ticket prices nationally were on the upswing.
And, as the competition heats up, both United and Frontier are boosting their service ahead of the summer busy season.
The airport is "very pleased with Southwest's indication that it is looking at increasing its schedule," said DIA manager Turner West. "Increased competition is always good for the traveling public."
Southwest currently has three gates on the C concourse at DIA and will gain one more in June. It typically operates about 10 flights a day at each gate it leases, meaning it would need more if it expands in Denver.
West said DIA will make "every effort" to work with Southwest on securing additional gates.
Rocky Mountain News (Denver, CO)
Southwest Airlines is preparing to as much as triple its daily departures from Denver International Airport, reflecting the carrier's intentions to grow rapidly in its newest market.
The low-cost airline appears close to receiving final Federal Aviation Administration approval on a proposal to fly as many as 60 daily nonstop departures from Denver. Southwest, which launched service at DIA in January, currently offers 20 daily flights from the airport.
Southwest's proposal signals that the company is bullish on its potential in Denver, said company spokeswoman Melanie Jones.
"This is a response to the success we're seeing there, and it's in anticipation of growth so when the time is right we have this step in place," Jones said, adding that the carrier has not announced specific plans for any new service.
Dallas-based Southwest last year received federal approval to start service at DIA and was told it would have to go through the process again if it planned to add more than 40 flights.
Airlines that want to start service or significantly increase flights at a given airport must meet certain environmental regulations. The FAA has issued a recommendation approving Southwest's latest proposal, saying the new flights conform with the regulations. The agency is now accepting public comment on the issue.
Southwest has said all along that it sees significant potential in Denver, and industry experts have been expecting Southwest to expand here sooner rather than later.
Last week, for instance, a Bear Stearns analyst downgraded shares of Denver-based Frontier Airlines, saying the carrier will face increased competition from Southwest.
"We believe expansion plans in Denver are aggressive and that Southwest capacity will more than triple in the next two years," analyst David Strine wrote in a research note to clients.
Experts say Southwest could boost flights from DIA to current destinations but also will look to add service to new cities such as Oakland, Calif.; Houston; Orlando, Fla.; and Nashville, Tenn.
Southwest is expanding rapidly nationwide as other airlines become more competitive. The carrier will add 33 planes to its fleet this year and has 140 planes scheduled for delivery between 2007 and 2012. Much of that growth likely will come at the expense of other carriers, said Evergreen-based aviation consultant Mike Boyd.
Still, he said, Southwest faces a tough battle in Denver. Both United and Frontier, the city's largest carriers, are fighting aggressively for passengers and are well-known in Denver. Boyd also argues that, price being equal, those two carriers offer a better product than Southwest.
"The last time I checked, Southwest was not included on the tablets Moses brought down from Mount Sinai," Boyd said. "So there's no guarantee they will be successful."
Consumers could be the biggest winners in any Southwest expansion. The carrier already has helped push down fares at DIA since its arrival less than four months ago. During the first week of April, for instance, fares at DIA were down 18 percent from a year earlier, even as ticket prices nationally were on the upswing.
And, as the competition heats up, both United and Frontier are boosting their service ahead of the summer busy season.
The airport is "very pleased with Southwest's indication that it is looking at increasing its schedule," said DIA manager Turner West. "Increased competition is always good for the traveling public."
Southwest currently has three gates on the C concourse at DIA and will gain one more in June. It typically operates about 10 flights a day at each gate it leases, meaning it would need more if it expands in Denver.
West said DIA will make "every effort" to work with Southwest on securing additional gates.
04-26-2006, 04:40 PM
#3
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Correct me if I am wrong, but up until the end of 2005, Southwest flew to ONE of United's five major hubs (Not SFO, DEN, ORD, or IAD). So there was hardly any route overlap. Now Southwest is moving into DEN. Oh well. That's 2 out of 5. How can you say bye bye United when over 50% of United's revenue comes from international flights, and Southwest does not fly international. Furthermore, Southwest does not fly a single flight to their most profitable hub (SFO), nor do they fly a single flight to their largest hub (ORD).
This seems to be more of a problem for Frontier because they are based solely in Denver. United is spread out all over the globe, and the affect of Southwest should be minimal. Besides, their fuel hedges are running out soon. And what happens when an airline's largest expense doubles???
One thing for sure, Southwest will be forced to raise fares, and the Southwest affect will continue to deteriorate, allowing the industry to rise out of the termoil caused by high oil prices and low cost competition.
This seems to be more of a problem for Frontier because they are based solely in Denver. United is spread out all over the globe, and the affect of Southwest should be minimal. Besides, their fuel hedges are running out soon. And what happens when an airline's largest expense doubles???
One thing for sure, Southwest will be forced to raise fares, and the Southwest affect will continue to deteriorate, allowing the industry to rise out of the termoil caused by high oil prices and low cost competition.
04-26-2006, 05:44 PM
#4
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Position: B737 CAPT IAH
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Originally Posted by BZNpilot248
Bye Bye Unitied and frontier.....
Remeber this if you ever read it. SWA is looking for revenue opportunities because the sh*t is about to hit the fan with their little part of the world. They have no other choice.....fuel hedges are running out and they pay their Capt's flying a guppy the same as United pays their 747 Capt's. Go and get a calculator and figure it out my friend.
As to Bye Bye to UAL or Frontier, I'd rather fly either for the same ticket price (which we all know they will be) and not have to stand in a CATTLE LINE WAITING TO BOARD. SWA works for some, but given the choice for the same price, I wouldn't board that CATTLE CAR!
Ya'll take care.
Lee
04-26-2006, 08:12 PM
#5
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Joined APC: Jan 2006
Posts: 345
Originally Posted by LeeFXDWG
Dude,
Remeber this if you ever read it. SWA is looking for revenue opportunities because the sh*t is about to hit the fan with their little part of the world. They have no other choice.....fuel hedges are running out and they pay their Capt's flying a guppy the same as United pays their 747 Capt's. Go and get a calculator and figure it out my friend.
As to Bye Bye to UAL or Frontier, I'd rather fly either for the same ticket price (which we all know they will be) and not have to stand in a CATTLE LINE WAITING TO BOARD. SWA works for some, but given the choice for the same price, I wouldn't board that CATTLE CAR!
Ya'll take care.
Lee
Remeber this if you ever read it. SWA is looking for revenue opportunities because the sh*t is about to hit the fan with their little part of the world. They have no other choice.....fuel hedges are running out and they pay their Capt's flying a guppy the same as United pays their 747 Capt's. Go and get a calculator and figure it out my friend.
As to Bye Bye to UAL or Frontier, I'd rather fly either for the same ticket price (which we all know they will be) and not have to stand in a CATTLE LINE WAITING TO BOARD. SWA works for some, but given the choice for the same price, I wouldn't board that CATTLE CAR!
Ya'll take care.
Lee
I dont know if any of you watch King Of the Hill but on one of the last new ones they made fun of the SW boarding procedure, I thought it was preety funny.
04-26-2006, 08:27 PM
#6
Line Holder
Joined APC: Apr 2006
Posts: 55
Originally Posted by ryane946
Correct me if I am wrong, but up until the end of 2005, Southwest flew to ONE of United's five major hubs (Not SFO, DEN, ORD, or IAD). So there was hardly any route overlap. Now Southwest is moving into DEN. Oh well. That's 2 out of 5.
04-26-2006, 11:18 PM
#8
Da Man
Joined APC: Feb 2005
Position: DC-10 F/O
Posts: 436
Originally Posted by av8r4aa
Wow, SWA is really booming.
Gotta give it to them, they are a smart company!
We will all see how this pans out.
Gotta give it to them, they are a smart company!
We will all see how this pans out.
I don't work for SWA, sometimes I wish I did. They are buying airplanes, hiring pilots, and oh yeah.....making money. I also don't think it's doomsday for other airlines because SWA is starting to look more an more like a network carrier. They have asmart management team so, yes, we'll see how it pans out.
04-27-2006, 06:45 AM
#9
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Joined APC: Aug 2005
Posts: 243
Lee,
I would have to agree with you. In another 2-3 years SWA's game is up and all the other carriers - UA and Frontier included - will be much more competitive. With fuel costs being roughly equal and just taking a quick look at the payscales this has to be obvious. The big question is whether or not a carrier like Frontier has the strength to compete for 3 years. However, I think they probably have the loyalty of the folks in Denver.
Mike
I would have to agree with you. In another 2-3 years SWA's game is up and all the other carriers - UA and Frontier included - will be much more competitive. With fuel costs being roughly equal and just taking a quick look at the payscales this has to be obvious. The big question is whether or not a carrier like Frontier has the strength to compete for 3 years. However, I think they probably have the loyalty of the folks in Denver.
Mike
