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OzarkD9S
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WN's 3rd Marriage...End Result?

Mon Jan 17, 2005 6:38 am

Southwest has an interesting history regarding takeovers and mergers. When they purchased Muse Air in the 80's they changed the name to TranStar, painted the planes and operated them independently without a codeshare or interline agreement. After a year or so they shut them down, without taking over the routes themselves. In fact it was many years later that WN went back into Florida following the TranStar shutdown. End Result:

In the 90's they purchased Morris Air, integrated the fleet and employee, but pulled out of many smaller western markets served by Morris. End Result: Success, unless you lived in a town vacated by the enlarged WN.

Now after "pumping and dumping" Muse, and "marrying" Morris they are "shacked up" with ATA. Should the relationship fail, does anyone care to speculate on the End Result?

I for one DON'T see WN:
1) Operating out of DCA, BOS, EWR, PIE, DEN, LGA, DFW, SFO or HNL.
2) Assuming grounded 738's or ATA employees.
3) Starting service to the Carribean or Mexico.

I DO see WN:
1) Grabbing the rest of the MDW gates.
2) Increasing service at IND.
3) Consider the possibility of operating to SJU.

Any other thoughts?
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DfwRevolution
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RE: WN's 3rd Marriage...End Result?

Mon Jan 17, 2005 6:44 am

I for one DON'T see WN:
1) Operating out of DCA, BOS, EWR, PIE, DEN, LGA, DFW, SFO or HNL.
3) Starting service to the Carribean or Mexico.


WN will serve the cities listed in point 1 before beginning international service to the Carriebean and Mexico. Granted I doubt WN would serve all of those cities, but WN is not an airline averse to change. There are still many destinations in the contigous 48 states WN can serve... or just connect the dots between their own cities...

Now after "pumping and dumping" Muse, and "marrying" Morris they are "shacked up" with ATA. Should the relationship fail, does anyone care to speculate on the End Result?

It's worth noting that WN's investment in ATA is not a buy-out merger like the examples you listed. WN does not own ATA, and thus somewhat limited in their ability to "take-over" their network.
 
USrampleadSTL
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RE: WN's 3rd Marriage...End Result?

Mon Jan 17, 2005 6:45 am

I actually can see WN picking up some of those cities you have listed. LGA and DCA, even on a limited basis could be very profitable. Also (I think this has come up before), HNL would be a real trophy. But the problems with high density longer routes are numerous, mostly involving effective aircraft utilization (too few people per 737). What seems most obvious to me is that WN will eventually sift through ATA and take what looks good. And if they ever end up operating larger aircraft on a low fare structure on longer routes... well, suffice to say they would probably become really poweful. But that's all likely a long way off. And it's all speculation anyway.
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N1120A
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RE: WN's 3rd Marriage...End Result?

Mon Jan 17, 2005 6:45 am

Of those airports, PIE is still a possibility, as WN is known to fly to more than 1 airport in a metro area (they already fly to TPA). DFW, a very long shot, is still not completely out of the question, and if they actually did get WS repealed, they would swap it to DAL. SFO may be a possibility for a return, with the new lower minimum separation rules keeping the runways open in fog. The others are really not realistic
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OzarkD9S
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RE: WN's 3rd Marriage...End Result?

Mon Jan 17, 2005 6:47 am

I realize their loosely attached to ATA, hence the term "shacked up". Does anyone know if the financial agreement gives WN first crack at any ATA assets besides the gates they already got at MDW?
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