Southwest Airlines CEO Gary Kelly lays groundwork for future growth

700UW

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Nov 11, 2003
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http://aviationblog.dallasnews.com/2014/05/southwest-airlines-ceo-gary-kelly-lays-groundwork-for-future-growth.html/

 
Southwest Airlines chief executive Gary Kelly said today that the airline has an opportunity to add up to 50 new destinations over the next few years as flight restrictions are removed at Dallas Love Field.
 
“We have a very exciting opportunity over the next few years,” Kelly told an audience of more than 100 people at the company’s annual shareholder meeting today in Dallas. “With the repeal of the Wright Amendment, we have a chance to grow beyond what we’ve already announced.”
 
 
 
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Thank you 700 for posting. I was going to do the same, but you beat me to it.  The growth for the up coming 5 years is looking great for SWA.  With the up coming W/A going away, there will be major growth for SWA just at DAL LF.  Plus the international flights starting in July. The added slots won by SWA at LGA and DCA and maybe even more from other airport divested gates from AA at other airports. The final integration of AT into SWA metal and routes. As well as future growth of international flights once they start.  As I have said before, and someone out here have knocked down time after time, and was confirmed by GK himself, Boeing cannot get us aircraft fast enough for our growth for the next 5 years or so.  This is why SWA is looking and buying any and all aircraft, including used aircraft, to support the growth as much as possible.  There are some movements in the works as we speak that will come out later that may very well increase the growth at DAL LF.  Times are good for SWA and us, as employees, just hope it will continue further out longer than 5 years. Below is the full article that you linked above, and again thx for posting it.
 
Southwest Airlines CEO Gary Kelly lays groundwork for future growth
 
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SWAMT  I know theres been talk about intl flights out of HOU (I think it was)  does DAL have customs too for any intl flights or no?  
 
Thank you 700 for posting. I was going to do the same, but you beat me to it.  The growth for the up coming 5 years is looking great for SWA.  With the up coming W/A going away, there will be major growth for SWA just at DAL LF.  Plus the international flights starting in July. The added slots won by SWA at LGA and DCA and maybe even more from other airport divested gates from AA at other airports. The final integration of AT into SWA metal and routes. As well as future growth of international flights once they start.  As I have said before, and someone out here have knocked down time after time, and was confirmed by GK himself, Boeing cannot get us aircraft fast enough for our growth for the next 5 years or so.  This is why SWA is looking and buying any and all aircraft, including used aircraft, to support the growth as much as possible.  There are some movements in the works as we speak that will come out later that may very well increase the growth at DAL LF.  Times are good for SWA and us, as employees, just hope it will continue further out longer than 5 years. Below is the full article that you linked above, and again thx for posting it.
 
Southwest Airlines CEO Gary Kelly lays groundwork for future growth
I'm not sure if you are referring to me but let's be very clear that I have never knocked you or WN for the strategic decisions they are making.

I have said and WN's traffic reports confirm that WN is flying fewer flights on larger aircraft and has had to close some cities in order to prepare for all of the opportunities that will happen this year.

I have repeatedly said that WN has enormous opportunities in front of them and that they will succeed wildly including at DAL.

BTW, there is one other strategic priority I would like to give you. There is a certain SEA based airline that, like FL, has costs well below WN's that DL would be happy if you bought. They have ETOPS routes, plenty of longhaul traffc, and are in a region of the country where WN has not been as strong as they are further down the coast.

and they have a pretty modern fleet of 737NGs.

They play with other airlines a lot including your crosstown competitor.

Think you could work on taking them out - or down?

thanks in advance.
 
robbedagain said:
SWAMT  I know theres been talk about intl flights out of HOU (I think it was)  does DAL have customs too for any intl flights or no?  
International flights are prohibited from DAL by the settlement agreement that limits DAL to 20 gates, and WN acknowledged that in its latest announcement.
 
WN has already announced that it will feature one-stops from DAL via HOU, where WN is building FIS facilities.   
 
Correct. HOU will be to WN what MIA is to AA, and it's perfectly located to funnel traffic from anywhere in their network.

There's also plenty of room to expand if they want to.
 
robbedagain said:
SWAMT  I know theres been talk about intl flights out of HOU (I think it was)  does DAL have customs too for any intl flights or no?  
Robbed.  Yes and no to your question.  The new DAL airport has an area built into the new design to handle or be customs at a later date.  And, the old Legend Airlines terminal, across from SWA's terminals are a custom area as well as something else to do with security.  Basically it will be an area that can be converted very easily and fast and very efficiently.   GK was updating us on the airport progress awhile back and he was asked about the permanent restrictions on international flights.  His answer was, "never say never", and he discussed the area being designed into the new airport for a later fight to get international flights out of DAL.   I can only assume this will not happen for some time (years) and after SWA could show the positive results from other international flights and use that to help getting rid of the restrictions.  FWAAA is correct, there are current restrictions in place as of now, as well as the 20 max gates, but I will assure you SWA will be going after tweaks later on for international flights and to add a gate here and there,  if you know what I mean.  The entire new design has future growth possibilities built into it, and remember SWA were the ones doing the designs and build so they pretty much got whatever they wanted out of it.
 
eolesen said:
Correct. HOU will be to WN what MIA is to AA, and it's perfectly located to funnel traffic from anywhere in their network.

There's also plenty of room to expand if they want to.
From what we have been hearing, HOU is going to be big for SWA, with lots of growth, but it will all come slower than SWA wants due to the lack of planes Boeing can deliver.   And if HOU does as well as planned, and the connections from DAL to HOU for the international flights go without huge complaints from customers, then they may very well ax the idea at DAL LF.
 
There's no idea to axe at DAL -- WN already agreed that DAL would be domestic only when they signed onto the compromise that eliminated the perimeter, even if pre-clearance were to be launched in Mexico.

The only way that changes is if the compromise is repealed, and that opens Pandora's Box in a huge way which could be more risk than its worth. WN might gain international flights, but they'd also see lawsuits from Fort Worth coming back into play, as well as the potential for implementing a more stringent local noise ordinance (which could ultimately prove to be more limiting than the curfew and gate restrictions).
 
Just let it all play out.  What we are all talking about now is going to happen years down the road.  But, E, I will tell you this, there are plans to eventually get international flights at LF, again, eventually, I have no idea how long it might take, but when it does, there will also be a request to add more gates as well.  What ever it takes to get to that point will be taken.  The "entire" repeal is what SWA originally started out to get, the "compromise" was the stopping of risking any changes at all at LF.  I am not saying you are incorrect by any means, but I will assure you that SWA will reopen another fight down the road concerning the restrictions still left from the W/A...
 
Go read the compromise, and get back to me on how they're adding international... it will require an act of Congress, and the appetite for making a third set of changes may not be there.
 
it's a given that it will require an act of Congress... the question is whether lawmakers can show that N. Texas is better off expanding int'l services from N. Texas or protecting a single airport.

Of course there are clearly two camps as to how the domestic expansion after Wright will play out but I fully expect that WN will make every effort to show its value... Virgin gives extra reason to ensure that pricing is very competitive.

I have less belief that WN will win over the right to expand the terminal but adding int'l flights using the same aircraft has little impact on the communities.

it will take years for the process to play out and it is doubtful that WN will make any move until they are well into a year of expanded operations at DAL.

And of course opening or reopening Pandora's box is exactly what WN wants to do - after they lock up all of the gates that are currently available.
 
eolesen said:
Go read the compromise, and get back to me on how they're adding international... it will require an act of Congress, and the appetite for making a third set of changes may not be there.
It took an act of congress to get to the compromise.  SWA can get it done again if they choose to do so.  
 
It's a matter of demographics. DAL is the airport of the wealthy, remember?... DAL has emotional value to WN because it's their home airport, but I think some of you over-emphasise the actual overall strategic value it plays in their network.

WN's future to Mexico lies at PHX, LAX, HOU and SAT. That's where the population densities are to support nonstops, and they're an easy connect to the rest of their network.
 
swamt said:
It took an act of congress to get to the compromise.  SWA can get it done again if they choose to do so.
You have it backward. After decades of lawsuits, the Five Parties negotiated what is now the Five Party Agreement between 2004 and 2006, and brought that to Congress, asking them to repeal of the 1979 Act.

Given the history, that's the only path I see for changes to the 2006 Act: the Five Parties coming to a new agreement, and bringing it to Congress. Any attempt to try and change it in the reverse direction are going to be met with considerably more resistance.
 
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