How Will Southwest Respond?

[DLFlyer31]

bizjournals.com

Southwest on standby for Atlanta?

Friday September 16, 11:36 am ET
The nation's top low-fare carrier, and one that is experienced in ramping up where traditional carriers have scaled back, may come in for a future landing at Hartsfield-Jackson International Airport.

http://biz.yahoo.com/bizj/050916/1165565.html?.v=1

[post="301615"][/post]​

Current projects only have DL reducing domestic capacity by about 10-15%. However, those cuts will not be spread evenly....CVG is taking a bigger hit than ATL or SLC.

Given the relatively small cuts DL will be making at ATL plus the presence of Airtran, I don't see WN coming to ATL. CVG would be more likely, but even that is remote.

PIT and PHL were different. In PIT, USAirways did a massive pull down (50%+) leaving a huge opening...plus PIT had minimal LCC service. PHL was a massive O+D market with minimal LCC presence making it ripe for the picking.

 

[Raizin_Cain]

Can all the experts explain why Delta closed DFW and toned things down in CVG? I can. It's called retreating back to their home base,Atlanta,re-grouping and defending it !

 

[WorldTraveler]

Folks,
DL and NW aren't cutting capacity in their local markets; they are cutting connecting capacity. DL had a very low percentage of local traffic in DFW and a very high percentage of flow traffic in CVG relative to the size of the local market which DL dominated. The legacies have O&D revenue management systems and O&D controls that allow them to determine how much local vs. flow traffic they take. DL could reduce capacity in ATL by 20% (not saying nor is there any indication that they are) but still be fully competitive w/ every carrier on nonstop flights out of ATL - and any other hub. With the exception of some flow O&Ds which AirTran carries over ATL, most LCCs including WN and FL do not compete in the same flow markets that DL does.

WN and FL's statements only ensure that DL gets their capacity changes right so they help DL and not anyone else.