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Southwest Announces Post-Wright-Amendment Destinations
Southwest Airlines announced the cities it intends to serve following the expiration of the Wright Amendment later this year. The announcement, made from Dallas Love Field on Monday morning, will see Southwest add service to 15 new nonstop destinations from Love, bringing Southwest to a total of 31 nonstop destinations. (airchive.com) المزيد...Sort type: [Top] [Newest]
SWA, a true no-nonsense airlines. Would LOVE to see them expand into the Alaska routes from SEATAC!
Will be interesting to see what short-haul routes/frequencies are cut. The new routes will be probably 40ish flights but Kelly said that there will only be a net increase of 20 flights at DAL, meaning they will have to cut 20 existing flights.
Of all the new routes, obviously the ones to the other hubs will do well. I think the one that will struggle the most is FLL as there is already low-cost competition from NK and WN isn't exactly the top player in the south-Florida market. I was surprised they didn't add either OAK or SFO. Something where the only competition would be AA and is a strong WN spoke like JAX, CMH, or PIT I think would have been a better choice.
Of all the new routes, obviously the ones to the other hubs will do well. I think the one that will struggle the most is FLL as there is already low-cost competition from NK and WN isn't exactly the top player in the south-Florida market. I was surprised they didn't add either OAK or SFO. Something where the only competition would be AA and is a strong WN spoke like JAX, CMH, or PIT I think would have been a better choice.
It is about time! I find it a bit ironic that the Wright Amendment was signed by Jimmy Carter, the promoter of Deregulation, i.e. let any airline fly anywhere without government interference! Then again, he and Alfred Kahn said that deregulation would increase competition. Before deregulation we had somewhere north of 20 airlines competing for your business, now we have FOUR. So much for that theory and the Wright Amendment.
We never had 20 airlines servicing every route. We didn't even have one airline servicing almost all.
Now we have four airlines with nationwide coverage, three with extensive international networks in addition to their national networks.
There are also a number of smaller, nimbler airlines with lower cost structures that are competing against the big four. These smaller airlines are growing at much faster rates than their bigger counterparts.
The larger airlines also get an outsize amount of their profits from their long-haul and international operations. Those operations will increasingly come under pressure from both foreign airlines and LCCs.
These same LCCs, that you seem to discount, make profits on short-haul (which the network legacy carrier tend to lose money on, but keep as strategic feeder routes). These LCCs are growing faster not only on short-haul, but increasingly on long-haul and international.
Four is just a number. It is but a mere snapshot in time. Four will change. If not just in number, then in which airlines will make up the four.
Don't count competition out just yet. The more conpmacient some get, the more opportunity others will have in undercutting their competitors with either lower prices or better service, or both.
Now we have four airlines with nationwide coverage, three with extensive international networks in addition to their national networks.
There are also a number of smaller, nimbler airlines with lower cost structures that are competing against the big four. These smaller airlines are growing at much faster rates than their bigger counterparts.
The larger airlines also get an outsize amount of their profits from their long-haul and international operations. Those operations will increasingly come under pressure from both foreign airlines and LCCs.
These same LCCs, that you seem to discount, make profits on short-haul (which the network legacy carrier tend to lose money on, but keep as strategic feeder routes). These LCCs are growing faster not only on short-haul, but increasingly on long-haul and international.
Four is just a number. It is but a mere snapshot in time. Four will change. If not just in number, then in which airlines will make up the four.
Don't count competition out just yet. The more conpmacient some get, the more opportunity others will have in undercutting their competitors with either lower prices or better service, or both.
* complacent
Deregulation also gave us the breakup of the Bell System. That was also supposed to make telecommunications cheaper by increasing competition....
How much is your land line phone bill?
How much is your land line phone bill?
The Wright Amendment was garbage law and now it has finally found its way to the landfill.