Southwest has gotten a transition plan for its absorbtion of Airtran approved the FAA it would appear they are on track to close their merger later this spring.  The transition plan calls for both Southwest and Airtran to be operating on one certificate early in 2012. 

In addition, Southwest has gotten a transition agreement into place with its pilots’ union which establishes the procedural framework for integrating Airtran pilots into Southwest’s structure.  This does not mean that we yet know how Airtran pilots will be actually integrated into the Southwest seniority list.  The silence on that issue is probably an indicator that progress is being made.  Unions don’t usually start firing public shots at each other unless they feel like progress is being blocked. 

I expect we’ll see more announcements on the merger in the next few weeks and certainly after Airtran holds its vote on March 23.

On another front, Southwest’s Gary Kelly has said that Southwest plans to grow further in Milwaukee.  Like Airtran and Frontier, Southwest sees Milwaukee as a real opportunity and by taking over Airtran, it should have plenty of space and opportunity to continue its growth.  I expect that we’ll see Southwest continue its battle against Frontier in this city as well Denver where both have grown  but more at the expense of United than each other.  Southwest is now carrying more passengers out of Denver than Frontier. 

Finally, Southwest should start flying from the NYC area’s Newark Liberty International Airport.  Southwest gained important slots from ContiUnited as a function of their merger and they’ve now got approval from the airport to begin flying from 3 gates to 2 destinations (Midway and St. Louis). 

With toeholds in both La Guardia and Newark Airport as well as Long Island’s Islip airport, I expect that we’ll see Southwest look for other opportunities to grow each new airport’s flights.  La Guardia, I expect, will be the slower growth airport as slots are extremely valuable there and several airlines are vying to be New York City’s airline of choice.  

One wonders if service to Islip will continue in the face of this NYC area growth and I expect the answer is that the flights will stay as long as they remain profitable and there are no other better profit opportunities elsewhere.  In the near term, I expect they’ll stay.  Islip is nowhere close to NYC and Southwest has been serving primarily East Coast destinations from Islip with Chicago Midway being the one exception to that.  Chicago may perhaps be dropped but I expect that if Southwest has found it valuable to serve the airport today, it will find it to be profitable to do so in the future.  Currently, Southwest’s competition is US Airways at Islip.

Filed under: Airline News by ajax