The US Airways / American Airlines merger should inspire Southwest Airlines to search for opportunity in this union.  Southwest’s ability to do business in the Dallas Fort Worth area has been constrained by American Airlines for more than 20 years.

The argument that Southwest has rid itself of the Wright Amendment at Love Field may come to mind, I would argue that they remain fairly constrained at Love Field and particularly so when compared to other high density metropolitan areas such as Chicago.

For instance, the maximum number of gates at Love Field were reduced from 32 to 20 and Southwest is limited to using just 16 of those gates.  The other 4 go to SuperLegacy airlines (of which American Airlines is one.)  Furthermore, if Southwest were to introduce any services at DFW airport, it would lose gates at Love Field.

It’s a deal with the devil that got made because of political considerations instead of reality.  I wouldn’t criticize Southwest for making the deal but I would urge that the deal be revisited at this point.

Frankly, I would urge that Southwest being penalized for instantiating services at DFW be changed.  The truth is that Southwest has been boxed into this area for decades and while a successful strategy for Southwest, it has impacted competition in the DFW area.  American Airlines owns DFW as an airport like few hubs are.

Southwest is now seeing competition from both ULCC carriers such as Spirit and SuperLegacy such as American Airlines.  It fills a niche that more would like to enjoy.  But the idea that people in Fort Worth avail themselves of Love Field for Southwest fares is a bit amusing to me at this point.  They just don’t.

The legacy airline playing field will be leveled with this latest merger.  In fact, 4 airlines will dominate the landscape when it is completed:

• Delta Airlines
• United Airlines
• American Airlines
• Southwest Airlines

I think it’s time we stop listening to the economic arguments made by the first 3 now that they all enjoy costs that are as low or lower than Southwest.  Instead, let’s start promoting competition between those airlines like we never have before.

Filed under: Airline Service, Mergers and Bankruptcy by ajax