Well, SWA is running away from PHL, it appears. Parker said SWA wasn't having much success there and that LCC was really killing them, guess he was right! Bad for commuters, yes; but GOOD for the airline and PHL revenue capabilities.
Markets that Southwest will exit on a nonstop basis are:
Birmingham-Louisville
Boise-Reno/Tahoe
Boise-Salt Lake City
Boise-Seattle/Tacoma
Jacksonville-Philadelphia
Kansas City-Seattle/Tacoma
Manchester-Las Vegas
Manchester-Philadelphia
Philadelphia-Pittsburgh
Philadelphia-Providence
Spokane-Seattle/Tacoma
*Note how they appear to also be abandoning SEA on non stop basis as well? ALK's agressive strategy to protect territory is obviously paying dividends up here as well.
Anyhow, this is clearly a victory for USAirways over the supposedly invincible LUV!! LUV first tried to crush AWA at PHX after 9/11, and AWA mgmt. (read: Parker and Kirby) smartly came up with a pricing strategy to keep LUV at bay. It was a remarkable aviation story, never fully told. LCC owns PHL, SWA can't compete against them at all. They will be running flights through BWI or stopping them completely. Watch for DAL to (attempt at least) to crush them in ATL. I think buying AirTran might have just made things worse for them.
So, in PHL, it's no surprise that LUV's fortunes immediately went south once the US/AWA merger happened. We had the better hand -- US's huge hub operation. You may remember that LUV moved into PHL shortly before this purhase, figuring they could replace US when it died.
So now we have some more great fundamental news today, and yet, the stock (and all airlines) is down?? Whatever
Thought this subject was worth more of a shout out, beyond the commuter issue.
Anyway, let's keep it up US!!
h34r: