Thought we could start new topics with the subject line of Airline News: and the name of a specific airline.
The postings in each of the topics would contain news articles, personal anecdotes, and other items related to a specific airline that really don’t fit into any of the other current topics.
Source: Reuters India
ANALYSIS-Southwest may pounce as oil wrecks airline plans
By Bill Rigby
Excerpts (emphasis mine)
NEW YORK, June 19 (Reuters) - As record oil prices force U.S. airlines to cut flights and slash payrolls, cash-rich and well-hedged Southwest Airlines Co … could pick up routes and expand its business as it has done in previous downturns.
The airline …, has $6 billion in the bank and $5 billion of fuel hedges on its books, a massive cushion that could help it swoop into markets that other airlines find unprofitable.
“Business cycle after business cycle, Southwest grows into the vacuum that’s created by network carrier retrenchment,” said Robert Mann, president of airline consultancy R.W. Mann & Co Inc. “That’s what they do.”
It already has a cost advantage over most rivals with its point-to-point route map, lack of expensive hubs to maintain, only one type of plane and a simple one-class fare structure.
…
It would be no surprise if Southwest launched new services after the peak summer flying season, analysts said, when other airlines are planning to prune networks to save money.
“Southwest is far from done in terms of developing our route system,” Southwest Chief Executive Gary Kelly said at an airline investor conference this week. He did not rule out an acquisition or large expansion, but said “it better be right for us”, given the risks to the industry from high oil prices.
…
Its market value stands around $10.4 billion, more than the rest of the top 10 U.S. airlines combined.
It has grown by entering markets where it thinks it can gain a foothold by forcing down fares, as it did at Chicago’s Midway airport, Baltimore-Washington, Philadelphia and Denver.
Since returning to Denver International Airport in 2006, Southwest has ramped up its services, hurting local low-cost rival Frontier Airlines … and … United Airlines. Since Frontier filed for bankruptcy protection in April, Southwest has announced more new flights from there.
“This is what they (Southwest) excel at,” said Betsy Snyder, an airline analyst at Standard & Poor’s. …
Next up could be flights to large airports in New York, Boston and Atlanta …
“These are places that historically they haven’t gone because they haven’t needed to,” Mann said. “But as the big guys retrench, there will be some room that frees up.”
Southwest had a code-share deal with ATA Airlines on flights to New York’s LaGuardia that lapsed when ATA went out of business in April, another victim of fuel prices. Southwest may be tempted to run its own service there at some point.
…
Southwest’s fuel hedges are working well amid the oil crisis. It paid an average $2.01 per gallon of jet fuel in the first quarter, higher than a year ago, but well below the market average of $3.07.
…
The hedges saved the company $291 million on fuel in the first quarter alone. It has hedges in place for the next few years, and though they are slowly losing potency, Kelly said they are worth $5 billion through 2012 at current oil prices.
From its position of strength, the carrier has launched an ad campaign poking fun at the new fees imposed by cash-strapped rivals, with the slogan “Fees don’t fly with us”.
Southwest, which has not introduced extra charges, reckons new baggage and booking fees, along with fuel surcharges, are jacking up the average domestic airfare by about 70 percent.
The carrier has not been immune to the crisis, scaling down fleet plans twice in the last nine months, cutting deliveries of Boeing … 737s. It will still make a net fleet expansion this year and next, but much less than originally planned.
Kelly admits the environment is “terrible,” and the airline is “trimming out” flights that are unlikely to make money. But overall, as it introduces flights on popular routes, he still expects to see a 4 percent increase in capacity this year. Most majors are planning double-digit capacity cuts this winter.
“Other airlines are shrinking, while we are continuing to grow, although very modestly,” Kelly said at the investor conference. “Southwest Airlines is very well prepared to weather this storm.”
Source: Chicago Sun-Times
Why Southwest soars as other airlines sags
BY LEWIS LAZARE llazare@suntimes.com
While every legacy airline in America is slipping and sliding, Southwest Airlines is preparing to use this dark moment in aviation history to cement its position as the pre-eminent domestic carrier – one that may soon have wireless Internet onboard and several international codeshare airline partners.
In an impressive talk before a large crowd at a Greater North Michigan Avenue Association luncheon at the Hyatt Regency Chicago, Southwest Chairman and CEO Gary Kelly laid out how Southwest plans to keep soaring while other airlines struggle just to stay aloft.
“We now board more passengers annually than any other airline in the world,” said Kelly. He admitted he could never have envisioned such an outcome when he took his first flight on then fledgling Southwest in 1972, while he was still a college student. “There were three passengers on that plane, along with three flight attendants in hot pants,” remembered Kelly. “The service was great, but I didn’t think they were gonna make it.”
Aside from the hedges its made in the volatile fuel market that will save Southwest $2 billion this year, Kelly pointed to other aspects of “the Southwest way” of doing business that will help it prosper in a difficult climate.
The first is treating employees like family, something Kelly insists has been true at Southwest since it was founded 37 years ago. In return, said Kelly, the airline expects its tens of thousands of employees to treat their customers the same way. Customer service clearly is an obsession with Kelly. He mentioned it repeatedly during nearly an hour-long talk. And the airline is constantly looking at ways to improve its service, which already ranks far ahead of other domestic carriers in nearly every survey taken. “Everyone likes working for a winner,” Kelly noted.
In addition:
- The airline will outfit four of its aircraft in late summer with the prototype of a new wireless Internet service that uses satellite technology. If the test goes smoothly, the Internet service could start rolling out across Southwest’s fleet early in 2009. Kelly hinted the new Internet service could also be used to provide passengers with a variety of onboard entertainment options.
- The carrier is aggressively negotiating with several international carriers to provide codeshare service to Canada, Mexico, the Caribbean and Hawaii by mid-2009. Southwest had a codeshare deal with ATA to provide Hawaii service, but that ended when ATA abruptly ceased operating in April. New codeshare deals with international carriers would give Southwest customers access to popular vacation destinations that are not part of Southwest’s domestic route structure, which includes service to 64 airports.
Kelly said there are currently no plans to add additional domestic destinations this year, but Southwest will be looking at the impact of major service reductions in the fourth quarter of 2008 by competitors such as American and United. Southwest could be well-positioned to ramp up service next year to some markets where those carriers sharply reduce service. Southwest expects to take delivery of more than 25 of the newest, fuel-efficient Boeing 737 aircraft over the next couple of years.
We have been told that 2009 will show little to no growth but i’ve heard that before.
Personally, I’m glad to see the word “Atlanta” in the article. Beats the heck out of the 2 hour drive to the “Atlanta-West Airport” in Birmingham.
Me and Clark Howard will be so happy when that one actually happens.
Regarding the new addition of STL nonstops…
I wonder if Southwest is gonna try to get some of the old AA/TWA gates, since AA seems to be winding down there…Turn it into a “Mega” station… I think that’s what they called it.
There are plenty of gates available at STL as it is.
Almost an entire former TWA concourse (D) sits vacant. This is connected to SWA’s E-concourse and SWA could theoretically just keep taking gates further down into D-concourse. The only airline that would have to be moved is Midwest, who could either be moved further down D towards the low#'d end or into concourse B (which is also almost completely vacant).
Does anybody know if Southwest have plans to enter the Caribean market ? Especially San Juan ,Puerto Rico. Since in September American is planning to cut back 40% percent of its flights to the U.S.A. , I think it will be nice for Southwest to fill in the gaps that American will be left behind … 
If Southwest was to enter the Caribbean market it would be through a code share.
One of the key things about Southwest’s operation is that they have quick turnarounds. That would not be possible in international operations.
San Juan, because it doesn’t require customs clearance from flights from the USA, could possibly be a destination. One problem is that they would need more over-water flight equipped aircraft.
Sorry for the question who or what is WESTJET and will that help get SOUTHWEST to start operations to the Caribean? Especially San Juan , Puerto Rico … 
Southwest isn’t filling in any of American’s “gaps” at SJU. Routes to STT and STX and New York aren’t part of their business plan. What you may see is that routes that otherwise may have been pulled by JetBlue and Spirit will hold on though and they may expand slightly in that market.
Westjet is Canada’s version of Southwest Airlines.
On WestJet’s website they state they offer the following destinations outside both Canada and the United States:
La Romona Dominican Republic
Honolulu, Hawaii
Maui (OGG)
Mazatlan, Mexico
Nassau, Bahamas
Puerto Plata, Dominican Republic
Punta Cana, Dominican Republic
Stations common to both Southwest and Westjet:
Fort Lauderdale (FLL)
Fort Myers (RSW)
Las Vegas (LAS)
Los Angeles (LAX)
Orlando (MCO)
Phoenix (PHX)
and Tampa (TPA)
Want to fly to Puerto Rico?, Southwest has decided to leave that route to Airtran and Jetblue. Don’t expect them to add it. Right Dami…?
As I mentioned earlier, that’s my hunch. I can’t see Southwest itself flying to any part of Caribbean. I also can’t see them code sharing with eithe AirTrans or JetBlue.
stanger thing have happened…
He never suggested that they would codeshare with AirTran or JetBlue. He was saying that the existing heavy presence of LCC’s at SJU (mainly Spirit and JetBlue) makes SJU not a particularly enticing opportinity for WN.
The code-sharing deal between South West and WestJet looks like great news for both airlines.
Here is an article from the Globe and Mail
reportonbusiness.com/servlet … iness/home
This is going to make both companies stronger and more competitive.
So would it now be safe to say that Calgary and Toronto are Southwest’s next 2 mega’s, or are their aircraft strictly staying in the USA?
So would it now be safe to say that Calgary and Toronto are Southwest’s next 2 mega’s, or are their aircraft strictly staying in the USA?
Isn’t Westjet going to be the one flying over the borders? I think what Southwest should really do is look at a codeshare with someone in Europe, and maybe Asia too. A trio (4 if you count Westjet) would be unstoppable.
We have no details as to where Southwest passegers will be ble to fly to on Westjet. Remember that we had a codeshare with ATA that did not include any international routes. We (Southwest) are working on a new computer reservation system that, i beleive, will be able to due international travel. As far as Europe, rumers are that is in the works.