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Southwest: "Chicago Is Our No. 1 Priority"  
User currently offlineGoAllegheny From United States of America, joined Nov 2000, 340 posts, RR: 0
Posted (9 years 3 months 2 weeks 5 days 14 hours ago) and read 4119 times:

Good article in this week's Crain's Chicago business about Southwest's rapid expansion at Chicago/MDW. Buying 6 gate leases from ATA certainly helped, but that's not the entire story. Bottom line is that SW wants to make Midway its biggest hub, and United and Alerican are targets. The facts are impressive:

*By July, SW will operate 192 daily departures from MDW, which is a 32% jump from last October. (Putting aside ATC limits, it could handle 250 departures a day - 10 from each of its 25 gates).

*SW's overall Chicago (ORD and MDW) marketshare will increase from 11.2% in July 2004 to 15.7% by July 2005. Meanwhile, UA and AA will be flat at 38% and 30%, respectively.

*SW is starting new non-stop service to 10 cities from MDW (Albany, Buffalo, Norfolk, New Orleans, Austin, Tucson, SLC, San Jose, Sacramento, and Portland) plus picking up several ATA routes.

*Average business fares from the Chicago airports have dropped 53% in the last year, attributable in part to SW's expansion.

16 replies: All unread, jump to last
 
User currently offlineDfwRevolution From United States of America, joined Jan 2010, 960 posts, RR: 51
Reply 1, posted (9 years 3 months 2 weeks 5 days 14 hours ago) and read 4099 times:

Quoting GoAllegheny (Thread starter):
Bottom line is that SW wants to make Midway its biggest hub, and United and Alerican are targets.

And B6, FL, and others I imagine.

Quoting GoAllegheny (Thread starter):
By July, SW

Southwest = WN

Or stock ticker- LUV


User currently offlineSESGDL From United States of America, joined Jan 2001, 3466 posts, RR: 10
Reply 2, posted (9 years 3 months 2 weeks 5 days 14 hours ago) and read 4045 times:

I'm glad to see WN taking on the likes of AA and UA. AA, for example, has gotten enough leverage through cheap government amendments at DFW, so WN should really give it to them. This will only further hurt UA, who's in deep trouble. I'm sure WN will do well though. The O&D is obviously there. I just wish they'd take over some TZ routes to places like BOS, LGA, EWR, DCA, MSP, and DFW. That'd be wicked! MSP especially needs the low fares.

Jeremy


User currently offlineFriendlySkies From United States of America, joined Aug 2004, 4105 posts, RR: 5
Reply 3, posted (9 years 3 months 2 weeks 5 days 14 hours ago) and read 3995 times:

WN is out for blood...I just hope they don't push it too far.

User currently offlineDfwRevolution From United States of America, joined Jan 2010, 960 posts, RR: 51
Reply 4, posted (9 years 3 months 2 weeks 5 days 14 hours ago) and read 3977 times:

Quoting FriendlySkies (Reply 3):
WN is out for blood...I just hope they don't push it too far.

It would be very difficult for them to do so. Adding 50 brand-new 737NG is only 11% growth.

Quoting SESGDL (Reply 2):
I just wish they'd take over some TZ routes to places like BOS, LGA, EWR, DCA, MSP, and DFW.

WN is perfectly content to leave those routes to TZ. WN doesn't own TZ and they don't control TZ. It makes sense to consolidate WN/TZ opperations but not for WN to wholesale conqure TZ's routes.


User currently offlineDCA-ROCguy From United States of America, joined Apr 2000, 4488 posts, RR: 33
Reply 5, posted (9 years 3 months 2 weeks 5 days 13 hours ago) and read 3927 times:

I've long wondered when WN would start flights from MDW to ALB and BUF. Westbound is still Upstate New York's weakest zone of LCC representation. Flights to those cities should do extremely well, especially with WN's connection synergy at MDW and relationship with ATA.

Jim


User currently offlineKlm From Norway, joined Mar 2001, 73 posts, RR: 0
Reply 6, posted (9 years 3 months 2 weeks 5 days 13 hours ago) and read 3887 times:

any link on this subject?

-klm-



Klm all the way!
User currently offlineIndy From United States of America, joined Jan 2005, 4537 posts, RR: 18
Reply 7, posted (9 years 3 months 2 weeks 5 days 13 hours ago) and read 3879 times:

What will happen now that WN has to pay high fuel prices like everyone else does? They were living on borrowed time for a while.


Indy = Indianapolis and not Independence Air
User currently offlineStirling From Italy, joined Jun 2004, 3943 posts, RR: 22
Reply 8, posted (9 years 3 months 2 weeks 5 days 13 hours ago) and read 3854 times:

Quoting GoAllegheny (Thread starter):
Bottom line is that SW wants to make Midway its biggest hub, and United and Alerican are targets.

Alerican! Yes! I've heard of them!

That was going TO BE the name of a new airline formed by the failed merger between American, and your username-namesake; Allegheny!

Beat out the second choice Amerigheny by a 3 to 1 margin!



Delete this User
User currently offlineNtspelich From United States of America, joined Aug 2003, 764 posts, RR: 0
Reply 9, posted (9 years 3 months 2 weeks 5 days 13 hours ago) and read 3852 times:

Quoting Indy (Reply 7):
What will happen now that WN has to pay high fuel prices like everyone else does? They were living on borrowed time for a while.

There's another thread going on about it right now, but we're 100% hedged for the rest of this year and something like 70 or 75% hedged for next year and 60-some% the year after that. It'll be awhile until our fuel costs are up there with everyone elses.

NTS



United 717 heavy, you're facing the wrong way. Any chance you can powerback to get off of my deice pad?
User currently offlineN60659 From United States of America, joined Mar 2005, 654 posts, RR: 25
Reply 10, posted (9 years 3 months 2 weeks 5 days 13 hours ago) and read 3824 times:

Quoting Ntspelich (Reply 9):
There's another thread going on about it right now

The thread Ntspelich is referencing is this one:
The King (Southwest) Has No Clothes! (by Padcrasher Apr 8 2005 in Civil Aviation)



Nec Dextrorsum Nec Sinistrorsum
User currently offlineMidway2AirTran From United States of America, joined Jul 2003, 864 posts, RR: 2
Reply 11, posted (9 years 3 months 2 weeks 5 days 11 hours ago) and read 3709 times:

Quoting Indy (Reply 7):
What will happen now that WN has to pay high fuel prices like everyone else does? They were living on borrowed time for a while.

All carriers face the same issue and WN isn't the only carrier that hedges fuel. It's been a heck of a strategy that was available to almost all carriers back in the good days when it was 50-80 cents instead of $1.40.

As for the rapid growth at MDW, I believe WN has higher incentives than just 6-7 gates and a codeshare program with TZ. I believe there is more to this move than meets the eye at the moment.



"Life is short, but your delay in ATL is not."
User currently offlineDfwRevolution From United States of America, joined Jan 2010, 960 posts, RR: 51
Reply 12, posted (9 years 3 months 2 weeks 5 days 9 hours ago) and read 3629 times:

Quoting Ntspelich (Reply 9):
There's another thread going on about it right now, but we're 100% hedged for the rest of this year and something like 70 or 75% hedged for next year and 60-some% the year after that.

It's 85% for this year.

Quoting Midway2AirTran (Reply 11):
All carriers face the same issue and WN isn't the only carrier that hedges fuel.

Others have heged, but not to WN's extent!

Quoting Indy (Reply 7):
What will happen now that WN has to pay high fuel prices like everyone else does? They were living on borrowed time for a while.

They have fuel hedgning to some extent through 2009, in other words, some modest "borrowed time." Here and now, they are doing quite well. Just to review:

Today's price: $54.11

2005 hedging: 85% at $26.00
2006: 65% at $32.00
2007-2009: 45% at $31.00

Quoting Midway2AirTran (Reply 11):
As for the rapid growth at MDW, I believe WN has higher incentives than just 6-7 gates and a codeshare program with TZ. I believe there is more to this move than meets the eye at the moment.

IMO: drawing domestic passengers away from ORD and making Chicago synonomus with WN before B6 shows up.


User currently offlineGoAllegheny From United States of America, joined Nov 2000, 340 posts, RR: 0
Reply 13, posted (9 years 3 months 2 weeks 5 days 9 hours ago) and read 3557 times:

I wonder if more people are noticing that MDW rarely faces the same level of delays as ORD during bad weather? Also, a lot of people live in the South suburbs of Chicago, and getting to ORD is a real pain.

I just wish that both MDW and ORD had some express train service. The Europeans on this board would get a laugh out of the digital time service at ORD where the subway arrives. One readout gives the time from downtown Chicago to ORD via the highway, the other readout gives the time from downtown Chicago to ORD via the train. Except during rush hour (which admittedly is a long rush hour), driving is often faster than the train, since the train has so many stops. It's about a 40 minute ride from downtown Chicago on the train. About 25 minutes driving with no traffic.

BTW, I like the name Alerican. I think I will create a new name for myself, take out a line of credit on my house, and buy Chicago Express. Oh, wait. I'm too late.


User currently offlineSv11 From United States of America, joined May 1999, 161 posts, RR: 0
Reply 14, posted (9 years 3 months 2 weeks 5 days 7 hours ago) and read 3456 times:

Midway is the perfect hub to allow coast to coast travel with one stop.

sv11


User currently offlineSTLGph From United States of America, joined Oct 2004, 9299 posts, RR: 25
Reply 15, posted (9 years 3 months 2 weeks 5 days 7 hours ago) and read 3422 times:

I look for Southwest to build up such a large presence that it scares/drives out some of the other carriers from Midway. I would not be surprised sometime within the next three to four years to see nonstops from Chicago to almost every single Southwest destination (outside of Love Field).

As and ATA fan, I'd personally like to see ATA stick around for years to come and for the alliance to continue as it best suits both airlines needs. Perhaps for ATA to add service to Toronto or Dulles or New York Kennedy connecting into the Southwest system.



Eternal darkness we all should dread. It's hard to party when you're dead.
User currently offlineLeelaw From , joined Dec 1969, posts, RR:
Reply 16, posted (9 years 3 months 2 weeks 4 days 23 hours ago) and read 3320 times:

Quoting STLGph (Reply 15):
Perhaps for ATA to add service to Toronto or Dulles or New York Kennedy connecting into the Southwest system.

Toronto makes sense. JFK and IAD don't. EWR and LGA in New York area, and DCA in Washington D.C., are far better portals into these markets to/from Chicago than JFK and IAD.


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