Southwest Adds new flights/cities to DEN and new pairs.

[Alex T]

http://phx.corporate-ir.net/phoenix.zht ... highlight= (http://phx.corporate-ir.net/phoenix.zhtml?c=92562&p=irol-newsArticle&ID=868695&highlight=)

The new service breaks down as follows:

Beginning July 17, 2006
* One new daily nonstop roundtrip flight between Denver and Houston
Hobby. Fares begin as low as $79 one-way (see fare rules below).
* One additional daily nonstop roundtrip flight between Denver and
Baltimore/Washington (for a total of two daily).
* One additional daily nonstop roundtrip flight between Denver and
Chicago Midway (for a total of five daily).
* One additional daily nonstop roundtrip flight between Denver and
Phoenix (for a total of six daily).
* One additional daily nonstop roundtrip flight between Houston Hobby and
Tampa Bay (for a total of three daily).

Beginning August 4, 2006
* Four new daily nonstop roundtrip flights between Denver and Kansas
City. Fares begin as low as $59 one-way (see fare rules below).
* One new daily nonstop roundtrip flight between Denver and Orlando.
Fares begin as low as $99 one-way (see fare rules below).
* One new daily nonstop roundtrip flight between Denver and Nashville.
Fares begin as low as $89 one-way (see fare rules below).
* One additional daily nonstop roundtrip flight between Denver and Las
Vegas (for a total of seven daily).
* One additional daily nonstop roundtrip flight between Denver and
Houston Hobby (for a total of two daily).

Beginning August 17, 2006
* One new daily nonstop flight between Baltimore/Washington and Oakland.
Fares begin as low as $99 one-way. $99 fare available for nonstop
flight only and must be purchased by Aug. 17, 2006. See additional fare
rules below.
* One additional daily nonstop roundtrip flight between Boise and Oakland
(for a total of two daily).

The good news is STL-DEN is now bookable (it wasn't before) through MCI.

Alex

[PhilDernerJr]

I was reading another message board (in a thread also started by Alex), and someone said that with Southwest also building up IAD, that maybe they are actualy going after United as opposed to Frontier. I found that interesting.

[Alex T]

I was reading another message board (in a thread also started by Alex), and someone said that with Southwest also building up IAD, that maybe they are actualy going after United as opposed to Frontier. I found that interesting.

If Southwest Starts IAD-DEN UAL is in big trouble, they already fly 777, with tv,s IFE and such. If customers are truly driven by the prices offered by WN and good service, usual average cheap fares and such then United needs to get their act together quickly before WN starts up IAD. Big planes won't mean anything to the customers if price is the driving factor.

Alex

[T-Bird76]

I don't think they are going after United per-say but Southwest knows if its to keep being a profitable airline it needs to change its business model. In the past WN would target the secondary cities like FLL, PVD, MDW, and BWI rather then go into the larger airports. While this has worked for them those cities are running out and growth at cities like BWI is tapped out. Your going to see WN do some very unWN things in the next few years. So long Love Feild hello DFW.

[PhilDernerJr]

As I understand it, WN has only been doing so well lately because of hedges on oil that let them buy in the $30 range, almost half of what most other airlines are paying.

[Alex T]

As I understand it, WN has only been doing so well lately because of hedges on oil that let them buy in the $30 range, almost half of what most other airlines are paying.

That is a very valid argument phil and certainly the truth, but one seems to think its the ONLY reason. IF WN hadn't hedged they would be loosing money if they did nothing, that would be absolutely correct. However we know WN is not stupid and is certainly not foolish to sit around and do nothing.

They would have raised fares as they currently did to compensate, and figured out other ways to raise revenue without laying off employeees or returning aircrafts and such.

Alex

[T-Bird76]

As I understand it, WN has only been doing so well lately because of hedges on oil that let them buy in the $30 range, almost half of what most other airlines are paying.

Yes the hedges have totally shielded them from the high price of fuel. Those low hedges run out around 2009. Plus WN is going to have some interesting labor issues real soon. Their pilots are paid some of the highest wages in the industry, give backs will be at hand. Again WN is out for blood or in this case yield and they have the money to pull off anything.

[Midnight Mike]

As I understand it, WN has only been doing so well lately because of hedges on oil that let them buy in the $30 range, almost half of what most other airlines are paying.

Part of the reason, the airlines used to hedge as well, Southwest was wise enough to maintain, which is good business expense. In some of the quarters, even without hedging, Southwest would have made a profit.

Every little thing that Southwest does saves money.

Flight Attendants clean the aircraft between flights
One type of airplane, 737
No Pension, instead, Southwest relies on stock options & a 401k plan.

Even when the networks were looking for an airline to be part of the airline show, which the other airlines turned down flat, Southwest was brave enough to allow itself to be in front of the camera. Whether you liked the show or hated it, it did get the Southwest name out there.