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http://blogs.wickedlocal.com/massmarkets/2012/01/31/southwest-airlines-drops-all-flights-out-of-new-england-to-philadelphia/#ixzz1l4BLBri4
Is the LUV Affair over?
All this decision does is confirm that WN is well run but it is by knowing that getting into costly fights with other carriers would only hurt WN.
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WN's success has been built on carving out a strong market presence in small markets or ones that it has dominated. There really is not much history of WN being a large player alongside another network carrier in its hub.
WN is smart enough to know that it can have a decent sized presence in PHL and other airline hubs but its presence will be heavily focused on service to WN's own hubs/large focus cities as well as large markets where there is room for multiple carriers regardless of the stripe.
The PHL-NE market was just not large enough for WN and US side by side.... WN's best strategy is indeed to serve those smaller NE cities from other cities and focus on using their assets in other locations where they can make more money.