Swerpipe
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- Oct 29, 2002
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DALLAS, Nov 12 (Reuters) - Low-cost carrier Southwest Airlines (LUV.N: Quote, Profile, Research) on Friday ruled out starting operations at to Dallas/Fort Worth International Airport, saying it would not be a good business move to challenge American Airlines at its main hub.
"We have no intention of going to DFW," Southwest Chief Executive Gary Kelly told a business meeting.
Southwest, which has its main operations at Love Field in Dallas, a few miles (km) from DFW airport had been looking at taking over gates at the airport as Delta Air Lines (DAL.N: Quote, Profile, Research) winds down its operations there.
Southwest has restrictions on where it can fly at Love Field, and flying at DFW would have given the carrier the chance to connect Dallas with more cities in the United States.
Kelly said that DFW is like a "fortress hub" for AMR Corp.'s (AMR.N: Quote, Profile, Research) American, the world's largest airline.
With American and its affiliated regional jet carrier operating about 700 flights a day at DFW, it would take too much effort for Southwest to start at DFW and also keep operations at Love Field viable, Kelly said.
"It just does not fit into our business model," Kelly said. "We are basically in one airport and we don't go into the hub airport."
Delta Air Lines Inc. (DAL.N: Quote, Profile, Research) has had the No. 2 position at DFW airport, one of the largest in the country. Financially strapped Delta has said it will reduce its daily flights at the airport by about 90 percent in the coming months from 254 to 21.
Kelly stepped back and talked about the future of the industry and said all U.S. carriers will have to adopt a low-cost approach to survive.
Several struggling carriers such as American, Delta, Northwest and others have slashed costs through items such as employee concessions as they struggle with record-high jet fuel prices and try to compete with low-cost carriers such as Southwest. "Over the next several years, every carrier will have to be a low-cost carrier," Kelly said.
"We have no intention of going to DFW," Southwest Chief Executive Gary Kelly told a business meeting.
Southwest, which has its main operations at Love Field in Dallas, a few miles (km) from DFW airport had been looking at taking over gates at the airport as Delta Air Lines (DAL.N: Quote, Profile, Research) winds down its operations there.
Southwest has restrictions on where it can fly at Love Field, and flying at DFW would have given the carrier the chance to connect Dallas with more cities in the United States.
Kelly said that DFW is like a "fortress hub" for AMR Corp.'s (AMR.N: Quote, Profile, Research) American, the world's largest airline.
With American and its affiliated regional jet carrier operating about 700 flights a day at DFW, it would take too much effort for Southwest to start at DFW and also keep operations at Love Field viable, Kelly said.
"It just does not fit into our business model," Kelly said. "We are basically in one airport and we don't go into the hub airport."
Delta Air Lines Inc. (DAL.N: Quote, Profile, Research) has had the No. 2 position at DFW airport, one of the largest in the country. Financially strapped Delta has said it will reduce its daily flights at the airport by about 90 percent in the coming months from 254 to 21.
Kelly stepped back and talked about the future of the industry and said all U.S. carriers will have to adopt a low-cost approach to survive.
Several struggling carriers such as American, Delta, Northwest and others have slashed costs through items such as employee concessions as they struggle with record-high jet fuel prices and try to compete with low-cost carriers such as Southwest. "Over the next several years, every carrier will have to be a low-cost carrier," Kelly said.
