Future Southwest flyers can expect fewer fees but higher ticket prices
What will Southwest’s decision to buy Air Tran mean to passengers? For starters, more routes, fewer delays, and less fees. But also cancellations in smaller cities and higher fares (at least in the northeast) and probably the end of super-low sale fares.
The US$1.4 billion deal will move Southwest into 37 new cities. It will also expand its presence in some cities such as New York and Boston. It will also give it a presence in Atlanta, the busiest airport in the US.
“Combining the AirTran and Southwest routes means more connecting options for people flying through places like Moline, Ill., and Wichita, Kan., which should result in fewer delays and cancellations because there will be more options for rerouting passengers,” said the AP.
In bigger cities like the Northeast hubs, however, fares will probably eventually go up, according to most observers. They may not happen immediately because many of those cities are still served by a third discounter, JetBlue Airways, said fare expert George Hobica.
What will happen to the superfare discount fares? They probably will be lost because of less competition, experts say.
"The era of irrational, stupid, destructive fare sales is over," Hobica told the AP. "This is the new normal. JetBlue now has permission to raise prices between Baltimore and Boston. Other airlines now have permission to raise prices between Washington, DC, and Florida."
One bit of good news: Southwest said it will drop AirTran’s bag fees when the pair combine in 2012. Right now, AirTran charges $20 for the first checked bag, $25 for the second. In addition, the combined carrier will not assign seats, under current Southwest style, according to several reports.
Some major airlines charge even more for baggage.
Southwest claims it has lured passengers by refusing to charge for bags, and it has built a marketing campaign around the policy, with baggage handlers shouting declarations of love to suitcases on the tarmac.
The combined airline probably won’t be large enough to pressure big competitors like United and American to give up the hundreds of millions of dollars a year they make from baggage fees, airline analyst Jay Sorensen said.
While Southwest will be about 25 percent larger when the deal is complete, it will remain the fourth-largest by traffic. The upcoming combination of United and Continental will be No. 1, followed by Delta and the parent of American.
Southwest will move into Atlanta, the only major business hub it doesn’t already serve. Because business travelers are a key to an airline’s success, this move will strengthen Southwest’s bottom line.
“We want to have greater appeal to more customers nationwide,” Kelly said. “The gaping hole in our route system right now is Atlanta. There is no easy way for us to get into Atlanta. We can start day one profitably and go from there.”
Southwest also gains routes to Mexico and the Caribbean, where it will compete with JetBlue.
By David Wilkening
David
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent
Strike action set to cause travel chaos at Brussels airports
All eyes on Qatar as Qatar Airways leads a season of global events