Business Travel News - April 27, 2009 - (Page 20)

DESTINATIONS Southwest Spells Out Its Plans For New York-LaGuardia Service BY JAY BOEHMER maining 65 cities in their route system,” he said. that’ll result mostly in decimated yields, not stimSouthwest Airlines plans to launch service at The carrier in December 2008 announced its ulated traffic.” New York’s LaGuardia Airport in late June with initial plans to launch service in New York through Still, true to form, Southwest is entering the five daily nonstops to and from Chicago Midway the purchase of airport slots owned by the now- market with introductory fares of $89 per way International Airport and three to and from Bal- defunct ATA Airlines. The anfor Chicago Midway service and timore/Washington International Airport. nouncement prompted analyst $49 per way for Baltimore/WashThough the carrier’s entry into the New York musings on the coming of the ington service. market remains modest, its planned service taps “Southwest effect” to the largest Seaney, examining fares filed into larger networks already established at Chica- U.S. business travel market and for the new routes, said, “In the go Midway and Baltimore/Washington. South- spurred hopes among some cornew price structure out of New west said connecting options at those airports porate travel buyers that SouthYork, the walkup airfares puroffer more than 45 destinations from New York. west’s entry would lower fares chased by many business travelSouthwest’s new routes put the carrier “smack- (BTNonline, Dec. 8, 2008). ers are lower than the legacy airdab in the middle of a hornet’s nest of competiMichael Boyd, head of aviation lines, in some cases substantially, tion,” airfare tracker Rick Seaney, CEO of Fare- consultancy The Boyd Group, in with prices ranging from $225 to Compare.com, this month in a research note said, a research review of Southwest’s $425 each way. This may be in noting there already are 103 daily departures move into LaGuardia said the popart to compensate for the legaconnecting metro Washington, D.C., with New tential for the “Southwest efcy airlines’ advantage with freCEO GARY KELLY York-area airports, and 76 daily defect”—which requent nonstops to several popuWhat LGA can do for SWA partures connecting New York with Access the sults in reduced lar business destinations out of 2008 Annual Airline Survey Chicago airports. fares and higher deNew York where Southwest must see btnonline.com/airsurvey “The method to Southwest’s madmand—would be minimal. connect with a one-stop.” ness is revealed with a quick look at these two “The consensus-following analysts will inject Meanwhile, addressing concerns about long prominent Southwest ‘focus cities.’ Chicago Mid- that the ‘Southwest effect’ will stimulate the mar- delays at LaGuardia tainting system performance, way, with 222 daily departures, and Baltimore, ket based on lower fares. Memo to analysts: You CEO Gary Kelly during Southwest’s first-quarter with 173 daily departures, allow Southwest to are wrong.” Boyd wrote. “True, they may try low- earnings call this month said, “With 16 trips, we extend their one-stop reach from New York La- ering fares, but United and American will match. think the risk of that is modest.” Kelly noted the Guardia to slightly over three-fourths of the re- In a business market like Chicago-New York, revenue potential of the New York market, saying, “We have real evidence based on our ATA codeshare about what LaGuardia will do for Southwest. We’re very confident that with that number of flights it will be a positive contributor.” ■ jboehmer@btnonline.com ■ Antitrust Alarm Sounds Continued from page 8 inance in structuring agency and distribution agreements. Concerning the tentative approval of the Star application, ASTA and ITSA said the deal “could be used to undermine independent travel distributors, which are critical to promoting airline competition and consumer welfare. The result will be fewer choices and higher prices for consumers.” ASTA and ITSA during the DOT proceeding argued, “Plans to cooperate in the area of distribution and sales are contrary to the public interest,” and ultimately would force “independent travel distributors to accept lower prices for their services.” In its tentative approval, DOT this month rebuffed those requests, claiming, “we tentatively find that the proposed alliance should not operate with special restrictions on distribution or sales.” ■ jboehmer@btnonline.com ■ 20 Monday, April 27, 2009 www.BTNonline.com Business Travel News http://www.FareCompare.com http://www.FareCompare.com http://www.btnonline.com/airsurvey http://furnishedquarters.com http://furnishedquarters.com http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - April 27, 2009

Business Travel News - April 27, 2009
Airlines To Test Tracking Unbundled Charges
Contents
Contents (cont'd)
Booking Tool Fees Go Past Transactions
Inside Track
Amex To Enable Online Holds For Mtg. Res
Profiles In Travel Mgmt
Forum
Corporate Housing Shedding Inventory
Lodging
EuroBTN: BA Resumes Agent Incentives
EuroBTN
Destinations

Business Travel News - April 27, 2009