Southwest Air says could add 60 jets in 2005
Tue Nov 9, 2004 02:41 PM ET
By Jon Herskovitz
DALLAS, Nov 9 (Reuters) - Southwest Airlines Inc. (LUV.N: Quote, Profile, Research) sees steady growth for the airline in a struggling industry, and the low-cost carrier could add as many as 60 aircraft to its fleet this year, Chief Executive Gary Kelly said on Tuesday.
Southwest, which recently took delivery of its 400th aircraft, has delivery and retirement plans that will result in it adding 29 net aircraft to its fleet this year.
"We think we can probably take 50 to 60 airplanes in total, not incrementally, for 2005," Kelly said at an analyst meeting that was monitored via Webcast. He said that if Southwest added as many as 50 or 60 aircraft, that would be a record year for new aircraft for Southwest.
Southwest exclusively operates 737 aircraft from Boeing Co. (BA.N: Quote, Profile, Research) . Kelly said that apart from the deliveries of new aircraft from Boeing, Southwest may consider used 737 models on the market, reiterating an interest in 737-800 planes operated by bankrupt carrier ATA.
Kelly said the main focus of Southwest's growth in 2005 would be at Chicago's Midway airport and in Philadelphia, where it started operations earlier this year.
Kelly said Southwest was interested in bidding on gates that may be available at Midway due to ATA's withdraw and said a good number of new gates for Southwest would be about seven.
ATA parent Indianapolis-based ATA Holdings Corp. (ATAH.O: Quote, Profile, Research) sought bankruptcy protection in October. It is the largest presence at Midway.
Southwest has been the only consistently profitable major U.S. airline since the Sept. 11, 2001 attacks on the United States. It has relied on a model of no-frills service, simple airplane fleets and low operating costs to secure steady profits.
Kelly said recruiting, training and deployment of personnel were the main constraints to Southwest flying more passengers.
"We are not interested in growing just for growth's sake," Kelly.
Kelly said struggling rivals are flooding the market with seats for sale but once there is a shakeout in the industry, Southwest should thrive.
"The earning power of Southwest has not yet been realized," he said.
Tue Nov 9, 2004 02:41 PM ET
By Jon Herskovitz
DALLAS, Nov 9 (Reuters) - Southwest Airlines Inc. (LUV.N: Quote, Profile, Research) sees steady growth for the airline in a struggling industry, and the low-cost carrier could add as many as 60 aircraft to its fleet this year, Chief Executive Gary Kelly said on Tuesday.
Southwest, which recently took delivery of its 400th aircraft, has delivery and retirement plans that will result in it adding 29 net aircraft to its fleet this year.
"We think we can probably take 50 to 60 airplanes in total, not incrementally, for 2005," Kelly said at an analyst meeting that was monitored via Webcast. He said that if Southwest added as many as 50 or 60 aircraft, that would be a record year for new aircraft for Southwest.
Southwest exclusively operates 737 aircraft from Boeing Co. (BA.N: Quote, Profile, Research) . Kelly said that apart from the deliveries of new aircraft from Boeing, Southwest may consider used 737 models on the market, reiterating an interest in 737-800 planes operated by bankrupt carrier ATA.
Kelly said the main focus of Southwest's growth in 2005 would be at Chicago's Midway airport and in Philadelphia, where it started operations earlier this year.
Kelly said Southwest was interested in bidding on gates that may be available at Midway due to ATA's withdraw and said a good number of new gates for Southwest would be about seven.
ATA parent Indianapolis-based ATA Holdings Corp. (ATAH.O: Quote, Profile, Research) sought bankruptcy protection in October. It is the largest presence at Midway.
Southwest has been the only consistently profitable major U.S. airline since the Sept. 11, 2001 attacks on the United States. It has relied on a model of no-frills service, simple airplane fleets and low operating costs to secure steady profits.
Kelly said recruiting, training and deployment of personnel were the main constraints to Southwest flying more passengers.
"We are not interested in growing just for growth's sake," Kelly.
Kelly said struggling rivals are flooding the market with seats for sale but once there is a shakeout in the industry, Southwest should thrive.
"The earning power of Southwest has not yet been realized," he said.
