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SWA Sees Benefits From Mergers, Intl. Code Shares  
User currently offlineLAXintl From United States of America, joined May 2000, 25381 posts, RR: 49
Posted (6 years 7 months 3 weeks 1 day 13 hours ago) and read 2334 times:

I would not be surprised to see SWA move fast either to back fill for any merger fall out, or participating itself in an acquisition.

Quote:
Kelly Sees Benefits From Mergers, Intl. Code Shares
02/01/2008

Southwest CEO Gary Kelly yesterday stressed the airline will not be left out in the cold if industry consolidation occurs, and he also reinforced the importance of adding international code-share partners to meet revenue growth targets.

Industry consolidation "provides opportunities for Southwest" no matter how active its involvement, Kelly said during the Raymond James Growth Airline Conference. Southwest has "enough exposure" to other airlines that it will benefit if any capacity shrinkage resulting from a merger --- as it did from the US Airways-America West merger. Southwest has the ability to respond quickly to new opportunities by postponing planned fleet retirements.

However, Kelly also said he "wouldn't eliminate the possibility we'll participate" in a merger. Southwest is well positioned for such a move with good cash balance and cost structure. Despite Southwest's well-known love of the Boeing 737, it may even consider acquiring an airline with another aircraft type. This would be "an impediment to an acquisition, but not a deal-killer," Kelly says. In fact, Southwest even has "a plan in mind" to deal with this scenario should it arise.

Southwest sees adding international code-share connections as one of its main strategies to boost load factor and meet revenue growth goals, said Kelly. He used the example of the ATA code-share, which drove $50 million in additional passenger revenue during its first year despite little extra cost or marketing effort.

Full story (subscription required)
http://www.aviationweek.com/publicat...s+FromMergers%2C+Intl.+Code+Shares


From the desert to the sea, to all of Southern California
13 replies: All unread, jump to last
 
User currently offlineZTagged From Niger, joined Oct 2007, 516 posts, RR: 0
Reply 1, posted (6 years 7 months 3 weeks 1 day 13 hours ago) and read 2321 times:



Quoting LAXintl (Thread starter):
"a plan in mind"

Typical WN, which kind of scares me. Who are they thinking of buying that has a different fleet? F9/B6/FL ?



Something awful.
User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 4061 posts, RR: 11
Reply 2, posted (6 years 7 months 3 weeks 1 day 13 hours ago) and read 2284 times:



Quoting LAXintl (Thread starter):
SWA move fast either to back fill for any merger fall out, or participating itself in an acquisition.

Perhaps now that they have the computer system and reservation set-up they can initiate something with WS for service to Canada. T7 might just completely divest themselves of any and all scheduled service. Perhaps WN also might consider adding the 738 with ETOPs to Hawaii since I doubt they would be interested in any of the T7 752s.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlineZTagged From Niger, joined Oct 2007, 516 posts, RR: 0
Reply 3, posted (6 years 7 months 3 weeks 1 day 13 hours ago) and read 2284 times:



Quoting SLCUT2777 (Reply 2):
T7

You mean TZ, right?



Something awful.
User currently offlineSteeler83 From United States of America, joined Feb 2006, 9209 posts, RR: 20
Reply 4, posted (6 years 7 months 3 weeks 1 day 12 hours ago) and read 2192 times:



Quoting SLCUT2777 (Reply 2):
Perhaps WN also might consider adding the 738 with ETOPs to Hawaii since I doubt they would be interested in any of the T7 752s.

Suppose they had an interest in serving parts of Europe, perhaps LON, LIS or MAD, or even DUB or SNN. Of course, they would be limited to PHL, or BWI...

I don't think they have an interest anyway in serving Europe just yet anyway...



Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
User currently offlineFloorrunner From United States of America, joined Jan 2004, 259 posts, RR: 0
Reply 5, posted (6 years 7 months 3 weeks 1 day 12 hours ago) and read 2164 times:



Quoting Steeler83 (Reply 4):
Suppose they had an interest in serving parts of Europe, perhaps LON, LIS or MAD, or even DUB or SNN. Of course, they would be limited to PHL, or BWI...

There are other possiblities besides PHL or BWI, What about PVD or IAD.


User currently offlineSteeler83 From United States of America, joined Feb 2006, 9209 posts, RR: 20
Reply 6, posted (6 years 7 months 3 weeks 1 day 12 hours ago) and read 2143 times:



Quoting Floorrunner (Reply 5):
There are other possiblities besides PHL or BWI, What about PVD or IAD.

Oh yeah. I was referring to markets with a larger WN presence. IAD is growing, and I think PVD has quite a presence as well.

Would PIT or CLE be good places as well?



Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
User currently onlineCitrusCritter From Pitcairn Islands, joined May 2007, 1104 posts, RR: 3
Reply 7, posted (6 years 7 months 3 weeks 1 day 11 hours ago) and read 2079 times:

I'd wager on WN running any intl. ops out of BWI. It's an easy connection to the Washington area, Baltimore itself has at least some O&D (though not a lot), and an easy connection to PHL, as well as to most of the WN network.

If WN were to contract with TZ for the intl ops, could you fly 757s BWI-LON?



TLH
User currently offlineTys777 From United States of America, joined Aug 2006, 404 posts, RR: 0
Reply 8, posted (6 years 7 months 3 weeks 1 day 11 hours ago) and read 2058 times:

You should be able to, NW is going to be running them DTW-LHR


Is it bad that I get excited to see even a CRJ overfly? Man, what this place does to you
User currently offlineCaptSeth From United States of America, joined Jan 2008, 27 posts, RR: 0
Reply 9, posted (6 years 7 months 3 weeks 1 day 11 hours ago) and read 2058 times:



Quoting CitrusCritter (Reply 7):
If WN were to contract with TZ for the intl ops, could you fly 757s BWI-LON?

Yes, in a two class configured -200. But yields are not so hot over the Atlantic, so I'm skeptical that anything like that could emerge.


User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 4061 posts, RR: 11
Reply 10, posted (6 years 7 months 3 weeks 1 day 11 hours ago) and read 2031 times:



Quoting ZTagged (Reply 3):
You mean TZ, right?

Very Correct!

Quoting Steeler83 (Reply 4):
I don't think they have an interest anyway in serving Europe just yet anyway...

 checkmark  I don't see WN going beyond North America for quite awhile, but I think they are running out of options for the lower-48 which explains why Gary Kelly has strongly hinted at an acquisition (can someone say FL?). WN will go beyond the lower-48 soon, but only to Hawaii with their own metal, to Canada, with or without a WS code-share and to Mexico and a few Caribbean destinations.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlineFlyingcat From United States of America, joined May 2007, 541 posts, RR: 0
Reply 11, posted (6 years 7 months 3 weeks 1 day 10 hours ago) and read 1956 times:



Quoting SLCUT2777 (Reply 2):
Perhaps now that they have the computer system and reservation set-up they can initiate something with WS for service to Canada.

Isn't WS in talks with Oneworld to begin a codesahre partnership?


User currently offlinePITops From United States of America, joined May 2007, 1442 posts, RR: 4
Reply 12, posted (6 years 7 months 3 weeks 1 day 6 hours ago) and read 1813 times:



Quoting Steeler83 (Reply 4):
Suppose they had an interest in serving parts of Europe, perhaps LON, LIS or MAD, or even DUB or SNN. Of course, they would be limited to PHL, or BWI...



Quoting Steeler83 (Reply 6):
Would PIT or CLE be good places as well?

PHL is too crowded as it is. BWI would be my guess since they have 160 some flights a day. PIT would be good since it's away from the crowded airspace of the east coast, but this would be on the back burner I would think since they don't even know if they are going to build up PIT now. CLE... I don't know. I think they are more interested in PIT then CLE.



Ground Ops, Southwest Airlines, CMH
User currently offlineXT6Wagon From United States of America, joined Feb 2007, 3409 posts, RR: 4
Reply 13, posted (6 years 7 months 3 weeks 1 day 2 hours ago) and read 1731 times:

Frontier is front in my mind for WN taking a nice bite out of the competition more or less on theri own dime. I can't imagine that WN couldn't make a decent pile of thier cash back tossing the A32x planes on the market as they replace them, and increased profits on many of the currently overserved routes that frontier is on. interestingly I bet unitied and others would jump for joy at it given that they could reasonably expect to see seats pulled from these routes making everyone remaining a bit happier.


For the "pie in the sky" merger, Continental + WN I think would be outstanding. Continental could interline most of thier domestic Y passengers and move thier own domestic services to a far more premium mix for the routes that need it. Short term I can't imagine it being a "real" merger but rather a fairly extensive agreement on copoperating.


In the "snowshoveling becomes a common pastime in hell" front, AA and WN doing anything together. Well I guess if WN convinced enough investment bankers to raid AA and dimantle it to sell off the assets that might be a *possible* interaction if super unlikely to occur.


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