GoAllegheny
Topic Author
Posts: 310
Joined: Fri Nov 17, 2000 4:48 am

Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 6:34 am

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.
 
DfwRevolution
Posts: 8651
Joined: Sat Jan 09, 2010 7:31 pm

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 6:37 am

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
 
SESGDL
Posts: 2621
Joined: Sat Jan 13, 2001 6:25 am

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 6:59 am

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
 
FriendlySkies
Posts: 3540
Joined: Fri Aug 13, 2004 3:57 pm

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 7:19 am

WN is out for blood...I just hope they don't push it too far.
 
DfwRevolution
Posts: 8651
Joined: Sat Jan 09, 2010 7:31 pm

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 7:28 am

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.
 
DCA-ROCguy
Posts: 3903
Joined: Fri Apr 21, 2000 5:03 am

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 7:54 am

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
Need a new airline paint scheme? Better call Saul! (Bass that is)
 
klm
Posts: 71
Joined: Sun Mar 11, 2001 10:15 pm

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 8:10 am

any link on this subject?

-klm-
Klm all the way!
 
Indy
Posts: 3979
Joined: Thu Jan 20, 2005 1:37 pm

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 8:13 am

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
 
stirling
Posts: 3897
Joined: Sat Jun 12, 2004 2:00 am

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 8:21 am

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
 
ntspelich
Posts: 740
Joined: Tue Aug 05, 2003 2:35 am

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 8:21 am

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?
 
N60659
Posts: 639
Joined: Thu Mar 10, 2005 3:24 pm

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 8:27 am

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
 
Midway2AirTran
Posts: 847
Joined: Wed Jul 16, 2003 7:34 am

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 10:20 am

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."
 
DfwRevolution
Posts: 8651
Joined: Sat Jan 09, 2010 7:31 pm

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 11:33 am

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.
 
GoAllegheny
Topic Author
Posts: 310
Joined: Fri Nov 17, 2000 4:48 am

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 12:10 pm

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.
 
sv11
Posts: 217
Joined: Tue Jun 01, 1999 6:26 am

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 1:51 pm

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

sv11
 
stlgph
Posts: 9176
Joined: Tue Oct 12, 2004 4:19 pm

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 2:16 pm

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.
if assumptions could fly, airliners.net would be the world's busiest airport
 
leelaw
Posts: 4520
Joined: Sat May 29, 2004 4:13 pm

RE: Southwest: "Chicago Is Our No. 1 Priority"

Sat Apr 09, 2005 9:51 pm

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.
Lex Ancilla Justitiae

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos