Quote:
Originally Posted by huntsvillefan
So--the SWA acquisition is good news for HSV?
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That is the $64,000 question. The recent HSV Times article stated that AirTran's HSV-BWI route is only around 40% full and the HSV-MCO (Orlando) route is only 52% full, whereas systemwide,AirTran's planes are running 85% full. Southwest is not going to loose money (they never have) and if they believe that the local business travelers are so loyal to Delta and its frequent flyer program that they'll never fly another carrier, why should they loose money flying out of HSV?
I saw the empty seats first hand while flying AirTran out of HSV to Boston a week ago - the flights from HSV to and from BWI were a third to 40% full, but the BWI-BOS-BWI flights were almost completely full. I thought then AirTran will pull out of HSV within 6 months - they are loosing too much money.
The most likely scenario which Southwest will do is to build up the existing AirTran hub at ATL by adding service to additional southern cities so they can create more connecting passengers to the larger cities where AirTran currently flies to from ATL and then add more flights so for example instead of having 4 flights a day to LAX, they would have 6 or 7. The most obvious cities for this would be BHM and BNA (Nashville). Also, Southwest has announced that they are beginning service to Charleston and Greenville, SC which again would be obvious destinations to add from ATL. With this strategy, HSV will be a second tier market to add service to from ATL. With AirTran's experience so far, it doesn't bode well. Also, keep in mind that out of both BHM and BNA, Southwest is already the dominant carrier so it will be easy to get their customers to fly to their new ATL hub.
The bottom line is that the business travelers around HSV have a tremendous opportunity for across the board lower fares to almost all business destinations through the new Southwest hub at ATL, but it is all dependent on supporting AirTran now.