Wn Stopping (for Now) Phl & Pit Expansion?

[USA320Pilot]

Today Forbes.com reported Prudential Equity Group reiterated an "overweight" rating and $22 target price on Southwest Airlines announced upcoming additions to its schedules, including additions on the West Coast and from Long Island to Florida. "We view this as a modest positive," Prudential said, citing the company's efforts to improve margins rather than pour more capacity into direct battle with US Airways in Philadelphia and Pittsburgh.

USA320Pilot comments: Why has Southwest stopped (for now) PHL & PIT expansion? Why are they not turning up the heat on US Airways?

Regards,

USA320Pilot

 

[funguy2]

LUV probably acts in its own best interests, targeting profitable markets, not unprofitable airlines.

 

[Whatnow?]

hmmmm interesting.......maybe those 2 markets aren't worth the time and trouble to them!

 

[swflyer]

Actually, SWA announced today that on July 17th it's adding another flight from PHL to MCO and FLL , for a total of 6 and 3 RT/day.

To answer the original question, the problem at PHL is available gates, not a desire to slow down. PIT won't start for two more weeks, so it's premature to say SWA is done growing there. PHL was the notable exception to starting w/more service than originally announced.

IMHO, Prudential is guilty of only reading the parts of the press release that matched their guidance.

 

[FWAAA]

USA320Pilot comments: Why has Southwest stopped (for now) PHL & PIT expansion? Why are they not turning up the heat on US Airways?

[post="262308"][/post]​

Perhaps because WN realizes that its current level of ops in PHL and its announced ops in PIT are more than enough to kill USAir; after all, when you're burning Atlanta (or, in this case, PHL and PIT), smart victors won't waste any more gas than necessary. Especially in these times when fuel is so expensive. B)

 

[ClueByFour]

Today Forbes.com reported Prudential Equity Group reiterated an "overweight" rating and $22 target price on Southwest Airlines announced upcoming additions to its schedules, including additions on the West Coast and from Long Island to Florida. "We view this as a modest positive," Prudential said, citing the company's efforts to improve margins rather than pour more capacity into direct battle with US Airways in Philadelphia and Pittsburgh.

USA320Pilot comments: Why has Southwest stopped (for now) PHL & PIT expansion? Why are they not turning up the heat on US Airways?

[post="262308"][/post]​

You must be kidding. I've seen tops that don't spin this fast.

PHL was (and remains) the fastest expanding LUV launch city, ever. Ever. Despite the crappy airfield design and the impact on LUV's finely tuned operations that comes with that.

And within a year, they attacked the former hub at PIT, which, BTW, has not even seen service yet.

They don't have to turn up the heat on US--they can drive down prices as is to levels that US cannot profitably fly at. US cannot sustain PIT-ORD for $50 each way. They cannot sustain PHL-RDU at $50 each way. And so forth.

You put it on cruise until US is dead, and then look for around 120 flights/day out of PIT and 200+ from PHL. Mark it down. After all, who was first on this forum to point out that US' betrayal of the state of Pennsylvania would come back to haunt them, and specifically that US was making a mistake by abandoning the O&D market at PIT?

 

[Bear96]

USA320Pilot comments: Why has Southwest stopped (for now) PHL & PIT expansion? Why are they not turning up the heat on US Airways?

[post="262308"][/post]​

Hmmm...

From earlier today...

http://www.southwest.com/jp/luvhome.shtml?...wservice_041505

"With the delivery of new aircraft, Southwest Airlines continues to add new nonstop service to our Customers' favorite destinations," said Kelly. "Southwest Airlines is adding service to meet high Customer demand and to give our Customers more flight options when traveling."


The 11 additional flights break down as follows:

Beginning July 17, 2005:
* Two additional daily nonstop flights between Las Vegas and San Diego
(for a total of 14 daily).
* One additional daily nonstop flight between Las Vegas and Oakland (for
a total of 13 daily).
* One additional daily nonstop flight between San Diego and Oakland (for
a total of 18 daily).
* One additional daily nonstop flight between Philadelphia and Orlando
(for a total of six daily).
* One additional daily nonstop flight between Philadelphia and Fort
Lauderdale/Hollywood (for a total of three daily).

 

[Dog Wonder]

No doubt Southwest is running scared!

 

[sfb]

Basically, what swflyer said. They DID announce two new round-trips at PHL, including one from PHL to US's so-called "focus city" at FLL. By my count, they'll be up to at least 50 daily departures from PHL in late July; this is the fastest they have grown at any new city, ever. They're constrained at PHL by only having six gates spread across two terminals with no connection beyond security. PHL is the only city where they had announced an additional "wave" of flights before even starting service -- and they haven't yet started service at PIT. I suspect that PIT-BWI will be coming pretty soon.

I'd add that Gary Kelly mentioned during LUV's earnings conference call that bookings from PIT are looking "really good" and that they're "very excited" about starting service at PIT in three weeks.

 

[ua767fo]

USA320Pilot comments: Why has Southwest stopped (for now) PHL & PIT expansion? Why are they not turning up the heat on US Airways?

USA320Pilot

[post="262308"][/post]​

You and I both know the SWA can put any major out of business anytime they want. Yes that means USAirways, United, and American. Smart business does not necessarily mean tanking the competition, it simply means getting the best return on your capital. Simple concept.

There are better markets out there than PIT, PHL, and CLT......but you know that already.

DENVER,CO

 

[Winglet]

SW is like a cat playing with the mouse until he get tired . . . . then chomp. Bleeding US Air slowly. Maybe they want to take out the fee-for-departure parasites (Air Whiskey) once they throw more money into the black hole.

 

[PITbull]

Today Forbes.com reported Prudential Equity Group reiterated an "overweight" rating and $22 target price on Southwest Airlines announced upcoming additions to its schedules, including additions on the West Coast and from Long Island to Florida. "We view this as a modest positive," Prudential said, citing the company's efforts to improve margins rather than pour more capacity into direct battle with US Airways in Philadelphia and Pittsburgh.

USA320Pilot comments: Why has Southwest stopped (for now) PHL & PIT expansion? Why are they not turning up the heat on US Airways?

Regards,

USA320Pilot

[post="262308"][/post]​

Unlike the rest of the "cut throats" in this industry, SW doesn't need to drive anyone out of business, they are already in the lead and making money hand over fist, even in this type of economy.

Their labor is happy, their pax are happy, their stockholders are happy, and their managment knows instinctively who comes first in their business model.

They deserve to be #1. And as long as they don't copy the other carriers in any way, they will continue to maintain their place in the sun.

USAirways cut their own throat when they thought they could change their fate by beefing up PHL with basically the same business model. In this economy today, rolling a hub like PHL and then introducing GOFARES in that market, killed our airline. And U has one of the lowest labor CASMS of any carrier. This managment is just simply not competent enough to recognize that when a HUB like PHL has the highest O/D market and no improvements to the runways to handle traffic, not enough man power to handle customer service, failure is certain. One of U's many mistakes was downsizing PIT.

I am glad to see other airlines come in and goble up the traffic and gates and keep Pittsburgh business' operating. Its a welcome site.

 

[etops1]

hey , i heard you were leaving the company. is that true?

 

[ngneer]

USA320Pilot comments: Why has Southwest stopped (for now) PHL & PIT expansion? Why are they not turning up the heat on US Airways?

[post="262308"][/post]​

US Airways isn't feeling any heat from SWA? I suppose implementing the GoFares whan SWA arrived was a coincidence. And Siegel reacted very coolly when SWA announced they were coming to PHL with his famous statement, "They're coming to kill us!"

 

[usairways85]

So let's see WN just announced a 6th PHL-MCO flt, 3rd PHL-FLL flt, they will be up to 7 PHL-MDW flts shortly, and will start 4 PHL-PIT flts in a few weeks. That's 10 new flts WN has announced since January. Considering the limited space WN already has at PHL i'd say they aren't stopping anything.