Wednesday, November 19, 2008

Southwest to Expand into New York

Southwest Airlines Co. has released a statement that they plan on expanding to New York City by purchasing several takeoff and landing slots at New York LaGuardia Airport.

Since ATA airlines has gone bankrupt, previously used take off and landing slots are currently unused and currently held by the bankruptcy court in Indianapolis. The court has made the claim that they would auction off the LaGuardia slots, and therefore Southwest would need to make bids in order to expand to the New York Area.

Currently, the airline only operates to Islip Airport on Long Island, making it difficult for many customers to access. Since LaGuardia Airport is one of the three major metropolitan airports in the New York City area, Southwest's expansion to the area would allow the carrier to finally enter the competative arena of being able to connect to European flights, since most European flights fly out of New York. Although Southwest operates as a completely domestic carrier, it is currently working with other international airlines to expand its service. Recently, Southwest has made ties that would allow it to operate code share flights to Canada and Mexico. Therefore, by moving into the New York market, Southwest would potentially become a larger international carrier through code shares and eventually, their own flights to and from Europe.

Southwest is the largest carrier in the US domestic arena, yet the airline is known to arrive on time most of the time, unlike other carriers which carry a smaller passenger load. This is mostly due to its well planned flight schedule, proven at both Philadelphia and San Francisco airports. As the airspace in New York is one of the most overcrowded areas in the nation, the airline will be facing some difficulty in scheduling. However, at the same time, since Southwest is only planning on purchasing 14 slots, which can allow about one gates worth of flights a day, for now, it is expected that they would succeed in continuing their mantle of success.

For the future, critics will be focusing on both Southwest Airlines' performance as well as how the airline would fare in the New York City environment, due to the large amount of international carriers in the area. But for now, at least Southwest is planning on expanding to LaGuardia while cutting flights from less profitable markets. This in turn allows the airline to stay the same size since the size of its fleet would not have to be expanded. Perhaps the airline will succeed in New York - prospects currently look good since the airline is the only carrier without fees.

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