Southwest Airlines in Memphis

[northernbizzkit1]

Southwest's destination list may expand to include Memphis should the Wright Ammendment be ammended to allow service from DFW to the state of Tennessee. In the MBJ this week, the news was reported that Memphis could get Southwest service fairly soon with the tweaking to the bill established in order to reduce competition in Dallas as far as the airlines go. The bill certainly will expand Southwest service in Nashville (a focus city for Southwest...the airline's 10th busiest city with 85 daily flights, according to the article), but it may have the chance to serve deprived Memphis with a discount carrier! Yes, we have AirTran and America West, but this is the big one! I'm also curious to see how it will work out with the America West/US Air merger. This should expand discount service in MEM with cheap flights to Phoenix, Charlotte, and probably Philly and Vegas (according to my bro at US Air). I'll be interested to see how this would work if Southwest entered in the Memphis market, for you'd have the long-time King of cheap flying and the new U.S. Airways that is expected to be a bigger Southwest. There is supposed to be service from Independence Air by the end of the year as well. Finally some competition would run rampant in Memphis as far as flights go! Although these discount carriers will be increased (suddenly there would be 3-4 instead of limited service by America West and MEM-ATL flights via Air Tran), I doubt these flights would harm Northwest since US Air would offer flights to just four or five destinations, Independence would fly to Washington Dulles, and Southwest would most likely offer an expanded Little Rock pattern in flights (flying to Dallas, Chicago-MDW, Houston, Vegas, Phoenix, and Baltimore). In my opinion, Southwest would probably compete with NWA by adding a MEM-DTW route and to tick U.S. Airways off, it'd add service to Philly, Raleigh, and Pittsburgh (Memphis lost Airways flights to Pittsburgh a few months ago). It will be interesting to see how the Memphis deal/Wright Ammendment goes!

[sleepy]

Lord knows, Memphis could use some cheap flights.

Awhile back, I posted some web-based walkup fares from Memphis to LA on Northwest, which were about $900 RT. Walkup fares from Nashville to LA on Southwest were something like $400.

Northwest has threatened to pull out of Memphis if a lowcost carrier puts some real competition in there. Imho, I think that's a bluff. If NWA pulls out of Memphis, they lose whatever presence they have in the southeast and become basically a midwestern carrier, although a very large one.

Also, NWA has a history of defending its fortress hubs ruthlessly by matching any and all fares--ever wonder why Southwest isn't in Minneapolis?

Not sure if Southwest would take the gamble, but for Memphis it would certainly be worth it.

[northernbizzkit1]

Lord knows, Memphis could use some cheap flights.

Awhile back, I posted some web-based walkup fares from Memphis to LA on Northwest, which were about $900 RT.  Walkup fares from Nashville to LA on Southwest were something like $400.

Northwest has threatened to pull out of Memphis if a lowcost carrier puts some real competition in there.  Imho, I think that's a bluff.  If NWA pulls out of Memphis, they lose whatever presence they have in the southeast and become basically a midwestern carrier, although a very large one.

Also, NWA has a history of defending its fortress hubs ruthlessly by matching any and all fares--ever wonder why Southwest isn't in Minneapolis?

Not sure if Southwest would take the gamble, but for Memphis it would certainly be worth it.

<{POST_SNAPBACK}>

Agreed. I think it's a major bluff. Northwest simply can't afford to lose its Southeastern base, for it's too concentrated in the Midwest. Notice that Indianapolis is becoming big for NWA...dunno if that's good or bad, but what is honestly the point of flying a 757 from Indianapolis to Detroit? Yes, it's a connecting flight, but that's the same as when they used to fly one from MEM to Ft. Smith (true story...happened a few times before to rise of the CRJ). Actually, Southwest is gaining prescence in Minneapolis due to its acquisition of some ATA sites. Like I said, I doubt Southwest and a revamped US Air would compete with Northwest place for place, but it certainly will spice things up a bit!