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merger mania continues - Southwest buying AirTran

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  • merger mania continues - Southwest buying AirTran

    http://www.lowfaresfarther.com/

  • #2
    Hot dog!!! shaggy

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    • #3
      Read what little there is in the link (mostly PR).

      I'm fine with this as long as this isn't strictly a move for SWA's for expanded presence into major markets like New York, Boston, Washington Reagan and Atlanta. IF they're looking at aquiring a fleet of aircraft to service smaller markets economically, sure, I can see that.

      But what I fear is that SWA's will cherry pick what it wants and eventually discard the rest. They have always had a very specific business/profit plan and it's served them well in the past. Expanding into different aircraft violates their plan of having only one style of aircraft to keep maintencance costs low. Having a hub system violates their system of flying direct from profitable markets.

      I'll have to take a wait and see approach but, I fear that SWA's will cherry pick what they want and discard the rest, leaving many small markets without a low cost carrier that keeps the legacy carriers honest.
      Our timeshare and other photo's at http://dougp26364.smugmug.com/

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      • #4
        Here is another link from Yahoo Finance that is non PR and more comprehensive.

        http://news.yahoo.com/s/ap/20100927/...airtran_buyout
        John

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        • #5
          Originally posted by JWC View Post
          Here is another link from Yahoo Finance that is non PR and more comprehensive.

          Southwest-AirTran deal means more options for some - Yahoo! News
          Southwest founder Herb Kelleher, a cigarette-smoking, Wild Turkey-drinking Texas lawyer, revolutionized the airline industry in the 1970s by offering low fares to leisure travelers out of secondary airports. Early on, the airline drew customers by passing out booze and putting flight attendants in hot pants.
          I'm always amused when I see quotes such as this. The company that led that revolution was PSA (Pacific Southwest Airlines) in the 1960's. Because of aviation rules at the time, "discount" airlines were limited to operating within one state. PSA built the model and showed it was viable in California. All Kelleher did was ape PSA, operating within Texas.
          “Maybe you shouldn't dress like that.”

          “This is a blouse and skirt. I don't know what you're talking about.”

          “You shouldn't wear that body.”

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          • #6
            Originally posted by T. R. Oglodyte View Post
            I'm always amused when I see quotes such as this. The company that led that revolution was PSA (Pacific Southwest Airlines) in the 1960's. Because of aviation rules at the time, "discount" airlines were limited to operating within one state. PSA built the model and showed it was viable in California. All Kelleher did was ape PSA, operating within Texas.
            I remember PSA very well. I flew on PSA many times from San Diego to the SF Bay area in the 70's. Here is a link to PSA history.

            Pacific Southwest Airlines - Wikipedia, the free encyclopedia
            John

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            • #7
              It made my day when I heard this on the news this morning. I've been praying that Southwest would come to Knoxville so I and all my friends could stop driving 200 miles to Nashville. Even if not flying Southwest, their presence there makes fares on other airlines lower.

              Knoxville has Air Trans, so I am assuming/hoping we'll see Southwest once the merger is complete.

              Sheila

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              • #8
                Originally posted by dougp26364 View Post

                I'm fine with this as long as this isn't strictly a move for SWA's for expanded presence into major markets like New York, Boston, Washington Reagan and Atlanta.
                From what I read in the WSJ, that is the main reason they are doing it. It also said they will keep the 717's to serve smaller markets.

                Of course, it is all up to the pilots union to allow the merger.

                Cheers

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