US Airways Dividend Miles (Pre-FlightFund Merger) - SW poised to pounce in PHL

According the DJNS article below, SW will increase capacity by 10% in 2005. It is clearly stated that their plans depend on the demise of US. Should US diminish flights from PHL, LUV will increase flights proportionally. Should US not diminish PHL, LUV will add cities (PIT?) more than likely further cannibalizing US's prime routes.

NEW YORK (Dow Jones)--Southwest Airlines Co. (LUV) executives tentatively expect to add 10% more capacity to the network in 2005, but they are delaying final planning to see what happens with some of their competitors.
In fact, if a competitor like bankrupt US Airways Group Inc. (UAIRQ) liquidates, or some other large opportunity comes up, Southwest may double its growth plans, executives said.
"We have not made plans for next year because we are wondering if something is going to happen that's fairly dramatic and whether we would want to respond," said the airline's new chief executive, Gary Kelly, during a conference call Thursday. "We'll wait as late as we can - then we'll proceed with our natural growth plan."
That natural growth plan would involve growth in the airline's newest destination, Philadelphia, if Southwest can get more gate space. Otherwise, the airline could add from one to three new destinations, Kelly said.

........................

The only specific growth Kelly mentioned was in Philadelphia, where Southwest operates out of four gates and has asked the airport for more. By the end of this month Southwest will be operating at full capacity in Philadelphia. Eventually, the airline would like to have as many as 25 gates, Kelly said. That is the sort of capacity Southwest might add if US Airways, which operates a hub in Philadelphia, liquidates, he said.
When asked how much the airline would like to grow in Philadelphia next year, Kelly said: "Could we double flights in Philadelphia? The answer is yes, if we had the gate capacity. If we did double it, would we open up a new city? I don't think so, because that (doubling in Philadelphia) would in essence be the equivalent of a couple of new cities."
-By Elizabeth Souder, Dow Jones Newswires; 201-938-4148; elizabeth.souder@ dowjones.com

Well WN seems to have decent presence down South, so I wonder if they plan to attack CLT, next? If US does liquidate, I am sure they will move into CLT, anyway, and moving into CLT would definitely improve US' chances of folding, which would then allow WN to pick up gates at PHL and CLT at better prices (since they will be empty and the Port Authorities will want to lease them ASAP).

Anyone know if LUV signage has gone up on D2/D4 yet in PHL? I've been relagated to Terminal F of late...

Southwest can pounce on this

It's what I have been saying on these threads for months. What's so sad is how easy US is making it for them.

Well WN seems to have decent presence down South, so I wonder if they plan to attack CLT, next?

LMAO, WN has decent presence in the South? They don't even serve two of the biggest metro areas in the South (Atlanta and Charlotte) and in general there's a gaping hole of service there running from ORF-RDU-BNA-BHM-MSY south and then JAX-MCO-TPA north ... that's a big area, considering its population, to have zero service.

LMAO, WN has decent presence in the South? They don't even serve two of the biggest metro areas in the South (Atlanta and Charlotte) and in general there's a gaping hole of service there running from ORF-RDU-BNA-BHM-MSY south and then JAX-MCO-TPA north ... that's a big area, considering its population, to have zero service.

Well, the CLT would be a natural expansion point for them, would it not? :)

Well, the CLT would be a natural expansion point for them, would it not? :)

Yes--WN really only flies out of Birmingham and has not really encroached on DL's territory much in the middle south.

Having said that, I know of people who drive to Birmingham from ATL to get better fares rather than fly out of ATL.

I read than WN is taking delivery of 29 new planes in 2005 and has 400 in service now (doesn't that make them the largest airline in number of aircraft now?).

They should have the capacity to absorb the traffic if US doesn't make it past the first few months of 2005.

..

Well, the CLT would be a natural expansion point for them, would it not? :)

Or GSO, now that AirTran has abandoned it. Sure, it's an hour and 15 min from RDU, but it not too much farther than that from CLT. And we all know many folks drive from CLT to GSO already.

It's what I have been saying on these threads for months. What's so sad is how easy US is making it for them.

Exactly. As US "shrinks to profitability", the abandoned gates that they leave in PHL and probably CLT too, will give LUV further leverage to push US over the edge.

There is blood in the water and LUV is circling!

Exactly. As US "shrinks to profitability", the abandoned gates that they leave in PHL and probably CLT too, will give LUV further leverage to push US over the edge.

There is blood in the water and LUV is circling!

Well--that's the American way, isn't it?

I assume the residents and businesses of those areas seeing their air service reduced are happy to see another airline filling the void.

..

Or GSO, now that AirTran has abandoned it. Sure, it's an hour and 15 min from RDU, but it not too much farther than that from CLT. And we all know many folks drive from CLT to GSO already.

More people, more top-tier corporations, more weath in general, more gates, more parking, more everything in CLT. Plus, holding all else equal, less cannoblization of RDU. WN will resist GSO and wait for CLT.

LMAO, WN has decent presence in the South? They don't even serve two of the biggest metro areas in the South (Atlanta and Charlotte) and in general there's a gaping hole of service there running from ORF-RDU-BNA-BHM-MSY south and then JAX-MCO-TPA north ... that's a big area, considering its population, to have zero service.


Beckles? Beckles? There use to be a guy named Beckles who used to hang around this place a lot.

Other than ATL and CLT, there aren't any markets in that gaping hole that are big enough to justify WN's interest at this time. CHS, SAV, CAE and others don't need that much lift.

Well--that's the American way, isn't it?

I assume the residents and businesses of those areas seeing their air service reduced are happy to see another airline filling the void.

..

Sure, it's the American way. Market forces decide which companies survive and which do not. The point is that US will basically open the door for LUV to overtake them in key markets such as PHL when they diminish service to save further costs.

It's appropriate and necessary for a business to defend it's market by differentiating their product from the competition and offering a better value (price). US has failed to accomplish this and, using BWI as an example, will succumb to LUV wherever LUV is given the opportunity enter and expand.