Impact of Southwest expansion means higher meeting costs
What the US$1.4 billion Southwest Airline acquisition means to meetings: a bump in fares, says Association Meetings.
“What’s uncertain is if the merged carrier will have a discount program for meetings,” the site says.
AirTran has a meetings program called EventSavers, which offers participating meeting groups a 10 percent discount. Southwest does not have a meetings program but offers discounts for groups traveling from the same origin to the same destination — but not from multiple destinations.
Southwest eliminated its meeting fares program in 2003.
Southwest spokeswoman Ashley Dillon says it is too early to know whether Southwest will carry over the EventSavers program.
The AirTran acquisition will enable Southwest to start service in new markets. These include Atlanta and Washington, D.C. (Reagan National).
The airline will also be able to expand to major East Coast markets, including New York’s LaGuardia International Airport, Logan International Airport in Boston, and Baltimore/Washington International Airport.
The expanded airline will serve nearly 100 U.S. airports.
With one less competitor in the low-cost carrier niche, there should be an increase in fares in the second and third-tier markets both used to serve, according to Jack Keady, president, Keady Transportation Consulting.
However, in bigger markets, it could have the opposite effect. “It works both ways. In certain cities you are going to get more competition,” Keady said.
Whether the merger results in fewer routes and seats remains to be seen.
“Overall, it’s probably going to move airfares up a bit,” Keady predicts. It all depends on the destination and air traffic volume. In recent months, traffic has been trending up, and if that continues, he says, it’ll be harder to get discounted fares.
By David Wilkening
David
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