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Southwest on offense: 20 new flights, 2 cities

Capacity rises 21 percent at DIA as others cut

By Chris Walsh, Rocky Mountain News (Contact)

Published June 26, 2008 at 10:10 p.m.

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Southwest ramp worker John Kachinko unloads a jet Thursday. Southwest announced it will add flights but said the move wasn't related to Frontier cuts.

Photo by Ken Papaleo / The Rocky

Southwest ramp worker John Kachinko unloads a jet Thursday. Southwest announced it will add flights but said the move wasn't related to Frontier cuts.

Photo by The Rocky / 2006

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Southwest Airlines will add 20 daily departures and two new cities to its schedule in Denver, continuing its breakneck growth here as other large carriers scale back.

The low-cost giant made the announcement Thursday, just hours after Denver-based Frontier - which is operating in Chapter 11 bankruptcy - detailed plans to slash 17 percent of its service and eliminate hundreds of jobs.

Despite the timing, Southwest said its decision to grow here is not tied to Frontier's announcement.

Regardless, it's a welcome development for Denver travelers, as it could help blunt some of the cutbacks by Frontier and other carriers.

"I understand the perception, and we certainly pay attention to the market and what's going on with our competitors," said Southwest spokesman Chris Mainz. "But this was an announcement we had on the books for a while. Denver is a growth city for us right now, and we will try to continue to grow there when we can."

Southwest plans to increase its daily flights from Denver to a dozen cities including Baltimore, Chicago Midway, Las Vegas, Phoenix, San Francisco and Orlando, Fla. It also will launch three daily nonstops to Orange County, Calif., and two to Tulsa, Okla.

The changes, which include the elimination of one daily flight to Oakland, Calif., and one to Seattle, amount to a 21 percent increase in the carrier's capacity.

In addition to the added service, Southwest will look to bring on another 100 workers, boosting its local work force to 320, Mainz said.

Southwest also said it is working with DIA to get more gate space. The C concourse - where Southwest operates - is full. The airport could look to move other carriers to another concourse, particularly if other carriers give up some gates as part of their cutbacks.

"We are confident that we'll have the gates we need to accommodate the flights," Mainz said.

The expansion comes as Dallas-based Southwest reallocates some aircraft from underperforming routes to "productive" markets. As part of those changes, Southwest will increase service in Oakland and Fort Lauderdale, Fla., adding a total of nine new flights across its system.

Southwest has focused heavily on Denver since arriving in 2006, making it the fastest-growing market in the company's history.

The carrier launched service with three cities and 13 flights; by fall it will serve 32 cities with 115 flights.

It currently captures about 7 percent of DIA's passenger traffic and could grab a much bigger share in the future.

"Southwest is well on its way to owning" DIA, said Bill Brandt, a turnaround specialist and bankruptcy consultant in Chicago. "They simply run a better company. All of the others run airlines and occasionally operate them like businesses. Southwest runs a business that happens to be an airline."

Experts say there's no doubt that the carrier is looking to take advantage of the weakened state of its main competitors in Denver.

Southwest has announced five major expansions at DIA this year alone, which will more than double its flights in Denver compared with 2007.

Its competitors are going in the opposite direction.

United Airlines - DIA's largest carrier - will slash the number of seats it flies in North America by up to 14.5 percent by the end of the year. It has already outlined plans to cut 5 percent of its capacity at DIA and said Thursday it will end its Denver-London flight.

The company expects to detail more changes in Denver and elsewhere in coming weeks.

At the same time, homegrown Frontier is axing 21 departures in Denver, and its bankruptcy has left a huge question mark over the company's future.

Southwest has a strong advantage over those airlines, as it previously cemented contracts that locked in its fuel prices at below-market levels.

"Southwest is as close as you get to success story in the airline business these days, and they can afford to expand as other airlines cut capacity," said industry consultant Richard Aboulafia of the Teal Group. "I'm sure they sense weakness and fear in Denver. But consider yourselves fortunate. In a time of cutbacks, there's lots of interest from another domestic provider."

Observers have long questioned whether Denver can support three large carriers, and some say it appears that Southwest is trying to push out either United or Frontier.

Frontier, though, says it is holding its own against Southwest, pointing to the fact that its passenger traffic is growing and that its planes are full on routes where it competes with the discount giant.

"They are not taking market share away from us," said Frontier spokesman Steve Snyder. "And in the last several months we've been able to get our costs down, which allows us to compete better with them."

walshc@RockyMountainNews.com or 303-954-2744

Next stop . . .

Southwest will add 20 flights in Denver, starting Nov. 2.

Existing routes from Denver that will see a capacity increase:

* Addition of one daily flight: Austin, Texas; Baltimore; Los Angeles; Nashville, Tenn.; Orlando; San Francisco

* Addition of two flights: Kansas City; Las Vegas; Phoenix; Salt Lake City

* Addition of three flights: Chicago Midway

And new to the lineup . . .

Southwest will add service to Orange County, Calif. (three daily flights) and Tulsa, Okla. (two daily flights).

Comments

  • June 27, 2008

    5:46 a.m.

    Suggest removal

    boogman writes:

    It is amazing how United keeps giving its business away to Southwest. Its not like it is a secret as to how Southwest takes over a market. I sure hope Frontier is able to stay in business to offer an alternative to the cattle car's of Southwest.

  • June 27, 2008

    10:56 a.m.

    Suggest removal

    Roca writes:

    heyyy theres another alternative, JetBlue... they really offer the best for your money. WWW.JETBLUE.COM try it just like i did, and trust me youll never fly with another airline....

  • June 27, 2008

    9:50 p.m.

    Suggest removal

    SteveM writes:

    Can Denver support three carriers? What's that got to do with anything? The question that locals should be asking is...Do you keep the 1000s of jobs in Denver (people who shop in your stores, buy your houses, buy your gas, pay local and state taxes) or do you ship the jobs and all the ancillary and related income to Texas? Denver did not need Southwest Airlines to come back after they deserted us due to high landing fees at the new airport. Currently they are so desperate to take over Denver they are flying half-full planes on most routes. They figure they can do this until one airline cracks and is gone. Is that what we want? Fly Frontier!

  • June 28, 2008

    10:32 p.m.

    Suggest removal

    Shirp writes:

    Sounds like you're in bed with the purple plague kkkriss...

    Can't wait to read your crap when frontier is gone and united is limping and the purple plague is charging $800.00+ for a round trip to LA.

    Do your homework media wizard....check prices on routes where they're not infecting others with homeless, jobless diseases.

  • June 30, 2008

    7:23 a.m.

    Suggest removal

    jacka writes:

    Vote YES on Amendment 47, giver Colorado workers and Colorado companies the same rights as Texas workers and Texas companies.

    YES on 47 for worker choice and paycheck protection.

  • July 1, 2008

    5:37 p.m.

    Suggest removal

    hebdfw writes:

    Southwest didn't desert DIA because of the high landing fees...when it came and left STAPLETON in the 1980's, the airport was loaded with delays. Southwest wasn't a huge carrier with extra aircraft back then and needed all its planes to be able to do quick turnarounds, and Stapleton just couldn't deliver. I worked for the original Frontier and it's amazing how Southwest's Denver route structure looks like the Frontier of old.