Johnboy From United States of America, joined Aug 1999, 2472 posts, RR: 1 Reply 1, posted (7 years 7 months 5 days 18 hours ago) and read 10250 times:
Southwest Airlines to Serve Denver International Airport
DALLAS, Oct. 20 /PRNewswire-FirstCall/ -- Southwest Airlines (NYSE: LUV), the nation's low-fare leader, announced today it will initiate service from Denver International Airport beginning in early 2006. The airline will announce specifics of its flight schedule and fares via a news conference in Denver next week.
"Southwest has experienced strong Customer demand to serve an obvious gap in our route network, and this service will return Southwest's legendary low fares to Colorado," said Gary Kelly, Southwest's Chief Executive Officer. "Denver's growing community is one we have studied and intended to serve, for quite some time, and we look forward to also serving the people of the entire State of Colorado."
Southwest's announcement today is a testament to the positive changes that have occurred as a result of the construction and cost conscious operation of Denver International Airport. Southwest served the Denver market between 1983 and 1986 from Stapleton International Airport. Since then, the Denver airport system has established a strong infrastructure, with six runways, and substantially reduced its rates on a cost per passenger basis, creating an economically attractive environment for Southwest Airlines. Additionally, Denver International Airport was ranked number one for ontime arrivals in 2004, making the airport a great fit for Southwest's quick aircraft turn times.
"Over time, Denver International has dramatically reduced its costs, increased its efficiency, and demonstrated that Denver can be a viable opportunity for Southwest Airlines," Kelly said. "This year a leading travel publication named Denver as the 'Best Airport in North America.'"
Southwest Airlines was able to accelerate the start-up of this planned new city due to aircraft availability created by Hurricane Katrina-related schedule changes and the resumption of new aircraft deliveries from The Boeing Co. subsequent to the cessation of a Boeing work stoppage.
Historically, when Southwest enters a new city, fares drop substantially and demand for travel greatly increases. The U.S. Department of Transportation (DOT) in a 1993 study described the phenomenon as the "Southwest Effect." Statistics from one of Southwest's newest cities, Philadelphia, provide a perfect example:
* Since Southwest Airlines entered the Philadelphia market in May 2004,
total Philadelphia traffic has increased nearly 30 percent.
* In the third quarter of 2004, the average one-way fare between
Philadelphia and Chicago Midway Airport fell 46 percent, while traffic
increased by 137 percent. In addition, the average one-way fare between
Philadelphia and Chicago O'Hare (an airport that Southwest Airlines
does not serve) fell 44 percent, while traffic increased by 28 percent,
showing that Southwest Airlines' arrival in new markets benefits even
sister airports and other airlines.
Southwest has reported 32 consecutive years of profitability and job security for its Employees, and earlier this year celebrated its 34th year in business. Based in Dallas, Southwest operates a fleet of 439 Boeing 737s with an average age of nine years-among the youngest pure jet fleets in the domestic airline industry. Southwest Airlines, the nation's largest carrier in terms of domestic passengers enplaned, currently serves 61 airports in 31 states. Based in Dallas, Southwest currently operates more than 2,900 flights a day and has 31,000+ Employees systemwide.
ManchesterMAN From United Kingdom, joined Sep 2003, 1192 posts, RR: 1 Reply 4, posted (7 years 7 months 5 days 18 hours ago) and read 10143 times:
This is great news as I love going to Denver and into the rockies but the fares seem very expensive. Hopefully the "southwest effect" will force UA and F9 into reducing their fares a bit which can only be good for the city and local tourism. I was in Denver last week and the city seems to be pushing tourism very hard so this can't do them any harm at all.
FlyPNS1 From United States of America, joined Nov 1999, 6049 posts, RR: 25 Reply 5, posted (7 years 7 months 5 days 18 hours ago) and read 10126 times:
While this will hurt both UA and F9, I actually believe F9 might be more vulnerable. Almost any route WN launches will directly compete with UA and F9. That means many routes will have 3 (or more) carriers which may be too much.
F9 might find itself sandwiched in between a strong LCC and a traditional network carrier (who has lowered their costs substantially in BK).
Flightopsguy From United States of America, joined Jan 2005, 346 posts, RR: 0 Reply 7, posted (7 years 7 months 5 days 17 hours ago) and read 10056 times:
Quoting FlyPNS1 (Reply 5): While this will hurt both UA and F9, I actually believe F9 might be more vulnerable. Almost any route WN launches will directly compete with UA and F9. That means many routes will have 3 (or more) carriers which may be too much.
F9 might find itself sandwiched in between a strong LCC and a traditional network carrier (who has lowered their costs substantially in BK).
You are so correct. F9 does not have the same resources to compete that UA has. This will overall be good for the DEN area, however, WN will also encounter some unique operating challenges at DEN, with reduced takeoff weights during the hot summer months, and de-icing challenges during the winter, not to mention Pena Blvd slowing to a crawl during the snowstorms.
Anybody know what percentage of the traffic at DEN is O&D as compared to connecting?
This could also force out some carriers that have very minor presences at DEN.
ManchesterMAN From United Kingdom, joined Sep 2003, 1192 posts, RR: 1 Reply 13, posted (7 years 7 months 5 days 17 hours ago) and read 9922 times:
Well isn't DEN the largest airport in the world? One thing they are not short of is space, you can after all fit ORD and DFW into the area covered by DEN (I read this last week but still find it a little difficult to believe).
PHLBOS From United States of America, joined Mar 2004, 7253 posts, RR: 25 Reply 14, posted (7 years 7 months 5 days 17 hours ago) and read 9908 times:
I just hope that WN's presence in DEN doesn't force F9 to go out of business. Hopefully, after being around for 11 years; F9 should have developed strong hometown airline relationship with Denver residents following by now.
F9 wasn't even around during the 2 times WN was at Stapleton; although the original Frontier was still around when WN was in DEN the first time.
"TransEastern! You'll feel like you've never left the ground because we treat you like dirt!" SNL Parady ad circa 1981
William From United States of America, joined Jun 1999, 1138 posts, RR: 0 Reply 17, posted (7 years 7 months 5 days 17 hours ago) and read 9877 times:
This is going to be interesting. Congrats to Denver. It is true,Frontier is the most vunerable here. I am waiting to see what happens when those lovely fronts come rushing down the Rockies forcing the Airport to use the crosswind runways. It will be interesting seeing SWA planes joining the Conga line.
SWA pretty much has the country covered,I think soon they will be running out of markets to serve with their business model and using 737s. This is beginning to prove it. Congrats to SWA and DIA.
Drerx7 From United States of America, joined Jun 2000, 4906 posts, RR: 9 Reply 20, posted (7 years 7 months 5 days 16 hours ago) and read 9860 times:
Quoting William (Reply 17): think soon they will be running out of markets to serve with their business model and using 737s. This is beginning to prove it. Congrats to SWA and DIA.
I'll have to disagree--there are still plenty of 737 markets. I think you'll see them start connecting more dots--then they'll push into other major hubs, like they are doing at DEN. I expect Northwest will be in their sites--MSP, MKE, MEM. Ultimately you'll see them in ATL--that may be a decade or more away though-IMO.
Quickmover From United States of America, joined Mar 2004, 2464 posts, RR: 0 Reply 22, posted (7 years 7 months 5 days 16 hours ago) and read 9747 times:
DEN has plenty of land. Gate space is what they need. DEN actually has fewer gates than the old Stapleton did when it closed. F9 has been lobbying for more gates for years. UAL has more than they really need right now, but I can't see them giving up any. I think at the far east end of the C concourse, one of the the old TWA gates is not being used. That's the only one I can think of.
Azstar From United States of America, joined May 2005, 541 posts, RR: 0 Reply 24, posted (7 years 7 months 5 days 16 hours ago) and read 9721 times:
Definitely not good news for F9, which is not a particularly well managed company. The immediate effect, I believe, will be the defection of their best employees at DIA, leaving only the worst performers to man the counters and the gates.They don't have the WN corporate culture where the employees feel connected to the company and feel they have a genuine stake in its success.Frontier has developed a "hub" mentality "we're really important and we can do what we want here" although they have not been able to turn a profit for several years, and will be unable to do so if downward pressure on fares continues. Ultimately, I don't think they will survive.
25 SunValley: Your statement is so untrue. They DO NOT pretty much have the country covered.
26 DAYflyer: CVG has no gates available thanks to DL, RIC is now occupied by Airtran and another recently announced carrier (I have forgotten who); CLT is no loge
27 DAL767400ER: Actually, there are plenty of gates available in the dumps they call Terminals 1 and 2, and most of the gates don't have jetways, but that hasn't sca
28 Quickmover: I wonder how this will tie in with ATA. They fly DEN-MDW and just recently started DEN-PHX with a 757. Maybe they will use ATA's gate.
29 IADLHR: Also, isnt this the first city they have opened up west of the Mississippi in quite a number of years?
30 PVD757: not that there will be nonstops right away, but the greater BOS market (MHT/PVD included) sees an average of 660 passengers each way per day on only 5
31 LTBEWR: I would think that Denver would be an ideal market for WN and apparently now the fees and operations are now better matched for WN's ops and cost stru
32 RL757PVD: I would have much rather seen PVD-DEN on F9, but im starting to think that wont ever happen now
33 BigGSFO: So they'll serve the very big DEN but not th very big DFW? Will this also be the first time WN returns to a city they once served, or have there been
34 HAJFlyer: Do you see any chance of WN moving into more "remote" high plains markets such as BIS or RAP where NW is currently the only legacy network airline tha
35 MSYtristar: WOW! All I can say is that i'm glad that I left F9 at DEN. It will probably be a blood bath up there once WN comes to town. Fact is, even though F9 is
36 ERJ170: Well... since F9, UA, Ted, nor anyone else will do RDU-DEN.. perhaps WN will seize the opportunity.. it is the right size aircraft for the route.. bet
37 Dartland: "In addition, the average one-way fare between Philadelphia and Chicago O'Hare (an airport that Southwest Airlines does not serve) fell 44 percent, wh
38 Atrude777: 28% increase was for the airport, meaning as WN forces the others to lower airfares, more customers will fly on the legacies because they have lower
39 N1120A: I am sure at least one Texas market, San Diego and ABQ will be in there It is huge, but smaller than 1 other airport, JED
40 Tom in NO: From the press release: Sounds like WN is content to let NW take over the number 1 role at MSY, and frankly, to take a back seat here while most every
41 OPNLguy: Southwest has only served DEN Stapleton once, starting in 1983 and pulling out in 1986, due to bad ATC delays at the old airport. Before you get too
42 PHXinterrupted: F9 better diversify its routes. Perhaps they can open new routes to Canada and the Caribbean.
43 Commavia: This is going to hurt United, but this is really going to hurt Frontier. This is going to be interesting ...
44 Apodino: I kinda figured they might do this, since the reason they pulled out of the old airport was mega delays, and that isn't really an issue at this airpor
45 N1120A: The thing about WN to MSY is that they were the main provider of tourist seats into the market before the hurricane, with the other airlines handling
46 PHLBOS: My bad, that's what I get for rush-reading through the press release at just one glance.
47 Drerx7: They did serve IAH twice and pulled out for a 3rd time this year.
48 Burnsie28: If they plan at operating at a loss, Denver is a very expensive airport to operate out of, Western Pacific found that out the hard way. DIA on has on
49 Dolphinflyer: I think that WN would have stimulated more incremental new traffic through commencing service to COS iso DEN. The gains that WN makes at DEN will come
50 STT757: Sounds like other Colorado Cities are in the works?.. There's no way to compare Charlotte and Cincinnati to Denver, there's tons more traffic going t
51 Ckfred: If WN is adverse to going into DFW, in part, because of the taxi times, wait until they start into DEN. A friend of mine is an AA pilot, and he has fo
52 ERJ170: How do they compare with the wait times at PHL???
53 Okie: I am thinking this is to appease someone in Colorado while hanging the carrot out there about possible service to DAL with the abolishment of the WA.
54 Goingboeing: Heck...AA pilots out of MCI take about 15 to 20 minutes to taxi to 1L...
55 SPREE34: At DFW it's distance and time waiting. At DEN it's going to be distance, and then an almost immediate departure clearance. I've never had the time wa
56 Vivavegas: Southwest Effect: FRONTIER AIRLINES (NasdaqNM:FRNT) Delayed quote data Last Trade: 8.40 Trade Time: 10:59AM ET Change: -2.36 (-21.93%) Craig MKE
57 TWA902fly: I think Ted will compete just fine. United/Ted has an extremely strong following in the Denver area, and Ted fares to places such as Florida will be
58 UA744Flagship: Thanks goodness we have Ted aircraft, which can better compete with WN than mainline. Time to prepare battle strategy...
59 Ckfred: ERJ170: You're right about the wait times at PHL. My AA friend hates going into PHL, because there is always a line for takeoff. But the taxi time at
60 ERJ170: Trust me.. I'd much rather be taxing for 15 minutes and moving, than sitting beside the runway for 20-45 minutes at PHL waiting for clearance to take
61 Goingboeing: Watch a Southwest jet taxi. Then watch an AA jet taxi. Big difference. Now, imagine a Southwest jet trying to taxi out behind a conga line of slow mo
62 MaverickM11: Sucks to be COS! They must be feeling like Allentown now...
63 MAH4546: Re-read what he said. Southwest claims that the "Southwest Effect" benefits other airlines, and he disputes that. You have to be drinking a lot of ko
64 PA110: The above is a huge overestimation of WN's plans. WN is exanding "to" Denver. There has been absolutely no mention of WN making DEN a new hub.
65 Commavia: My predictions: *BWI *MDW *LAX *LAS *PHX *MCO
66 EA CO AS: Typical WN spin at work. Which ultimately is still harmful because the increase in the volume of passenger traffic typically isn't enough to overcome
67 Junction: That's what I thought. Especially the landing fee part. Wonder what brought on the change of heart for DEN with WN? Guess maybe WN is so well leverag
68 N1120A: DEN has reduced costs of late, and I really doubt WN will use DEN's f'ed up baggage system. Not really, as WN will plan accordingly. They have learne
69 Goingboeing: And as a passenger whose time is money, the faster I am in the air, the better. If a V1-10 taxi speed accomplishes that, more power to 'em.
70 RedFlyer: My guess is they are going to serve the airport predominantly with 700's, which, after all, were intended originally to blunt Airbus 320's. Especiall
71 Gigneil: The plans include out to Concourse E. I'd suggest they get started on D soon. Me too. God knows, Colorado Springs leads the industry in yield. T2 is
72 Texan: We could also question if this is a political move to try to convince Allard and Salazar to vote their way on a hot button issue. Good news for DEN, h
73 N1120A: Which is again proof positive of why legacy carriers need to get away from boom and bust yield based thinking and move to a steady income model like
74 SHUPirate1: You all don't think that Southwest would start Denver-Salt Lake City or Denver-Kansas City? After all, they do usually like to have at least one or tw
75 Uadc8contrail: cos has 11 open gates......gates 6,5b,7&9. and the entire concourse on the east side(7)4 with jetways and 3 with out since cos sold 3 of the jetways
76 ModernArt: The U.S. legacy carriers have had ample warning - a decade plus - to get their house in order, reduce the number of employees per aircraft, standardi
77 DLKAPA: I've seen planes wait for takeoff clearance in the line at 25 for half an hour while the UA arrival bank was in full swing. Agreed. 16, and all 4 on
78 Quickmover: "You all don't think that Southwest would start Denver-Salt Lake City or Denver-Kansas City? After all, they do usually like to have at least one or t
79 Ssides: I am glad WN is starting service to DEN, but this could finally be the PR break that AA and DFW are looking for in the Wright debate. I am somewhat pr
80 Iowaman: I'm quite surprised about this news, I would of thought MSP would of been first.. MSP (which I get this feeling it's coming soon, although not as soon
81 N1120A: DEN is the only choice in Denver, DFW is not the only choice in Dallas DEN is not delay prone in the winter, unless there is a sudden massive blizzar
82 DIA77: DEN actually ranked number 1 in ontime arrivals (as the article also mentions). The perception of DEN is that it snows all the time and that there ar
83 Falcon flyer: Probably one of the greater examples of why very few can predict the direction of this industry. I'm kind of surprised that no one heard any rumblings
84 DLKAPA: Unless WN plans on a "Open up APA" debate (which I see them looking into but probably going nowhere), they'll have to stay at DEN because it's curren
85 CO757bos2iah: Because AA would SPANK that a** AA has a loyal business following. I don't think everyone is going to up and leave the Admirals Lounge for elbow-to-e