Even Michael Boyd says Kevin Cox is out of his mind. 😀
Southwest decides to stick with Hobby
Carrier says flying from two Houston airports didn't make sense
11:55 PM CST on Thursday, January 27, 2005
By SUZANNE MARTA / The Dallas Morning News
Southwest Airlines Co. said Thursday that it would stop serving Houston's George Bush Intercontinental Airport to focus its entire schedule for the city on William B. Hobby Airport.
"With all the industry challenges, we can't continue to serve two airports in one market and continue to have the losses we've had for years at Intercontinental," said Southwest spokeswoman Whitney Eichinger.
Houston is the only major city where Southwest's operations were split between two airports.
Officials at Dallas/Fort Worth International Airport, who have lobbied Southwest to launch service there, said the move appears to be directly tied to the debate over flight restrictions at Dallas Love Field.
"After 24 years of operating out of dual airports in Houston, we find the timing of this announcement rather curious," said Kevin Cox, D/FW's chief operating officer.
Mr. Cox noted that Southwest, which is based at Love Field, continues to operate out of multiple airports in the Los Angeles area and in southern Florida.
D/FW had hoped Southwest would take over some of the 24 gates set to be vacated when Delta Air Lines Inc. dismantles its North Texas hub there on Monday.
"Southwest has publicly admitted that it can operate profitably out of D/FW Airport, but it has chosen not to provide this service option to the North Texas traveler," Mr. Cox said. "Instead, it appears to be positioning itself for a long, costly and unnecessary legislative battle which will benefit no one in the end."
Southwest officials denied their decision to pull service from Intercontinental had anything to do with the fight to repeal the Wright amendment, which limits most flying from Love Field to nearby states.
"Our move today is purely related to Houston," Ms. Eichinger said. "It was a business decision."
Southwest said in November that it didn't want to split its North Texas operations by launching D/FW service. Instead, Southwest said, it wants the Wright amendment repealed so it can expand at Love Field.
Industry consultant Mike Boyd said Southwest's elimination of service to Intercontinental underscores the carrier's argument for not going to D/FW, but it also makes good business sense.
"They're not going to pull out of a market that they're making money in just because it makes a political statement," Mr. Boyd said. "Southwest doesn't do nonsense like that." (emphasis added)
Mr. Boyd said Southwest's limited schedule of just six daily flights from Intercontinental doesn't fit the carrier's business model for a market of Houston's size.
"Things are different now," Mr. Boyd said. "They're expanding, and they need airplanes in other places."
Southwest said the service change, scheduled to take effect April 3, would give it an additional aircraft to deploy elsewhere.
Southwest, one of a handful of profitable U.S. carriers, has been on an aggressive expansion program, adding service at Chicago's Midway Airport and Pittsburgh International Airport.
Intercontinental was one of Southwest's original three airports when the carrier was launched in June 1971. But within six months, Southwest moved its Houston operations to the city's smaller Hobby Airport.
Southwest reinstated service at Intercontinental with seven daily flights to Love Field in 1980, offering as many as eight daily departures as recently as last October.
Hobby is Southwest's fifth-largest operation with 139 daily departures, including 29 to Love Field.
The airline operates 17 gates at Hobby and commands nearly 86 percent of the passenger market there. Its single gate at Intercontinental, which has a lease expiring in June, attracts less than 1 percent of airport passengers.
Houston-based Continental Airlines Inc. serves Intercontinental from D/FW and Love Field. American Airlines Inc., based in Fort Worth, serves Intercontinental from D/FW.
Southwest continues to enjoy its monopoly position at Love Field, where it flies more than 97 percent of passengers.
Research released Thursday by Unisys R2A Transportation Management Consultants showed that Southwest outperforms its competitors on flights to both Houston airports based on revenue.
The study compared 13 routes flown by Southwest from Love Field against the same routes flown by American, Delta and Continental from D/FW.
The study didn't examine Southwest's costs on the route to determine if it was profitable.
Staff writer Eric Torbenson contributed to this report.
E-mail smarta@dallasnews.com
SOUTHWEST'S HOUSTON SERVICE
Airport Daily flights Cities served nonstop
Hobby 139 26
Intercontinental 6 1 (Dallas Love Field)
SOURCE: Southwest Airlines
