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Nov21
Southwest and Others Eyeing US Airways East Coast Shuttle
News that Southwest Airlines is interested in some of the east coast shuttle operations that US Airways would have to sell off in order to gain approval from the Department of Justice comes as yet another blow to Delta Air Lines. The airline ran a full page ad in the local Atlanta Journal Constitution saying that it wants to emerge as a stand alone carrier but that may be in serious doubt as Southwest and other carriers have become interested in the east coast shuttle operations. The shuttle, which ferries lucrative business travelers between Boston, New York and Washington, would be attractive to a host of airlines. American has been mentioned as one of many candidates, but Southwest's name had not come up until now because of its resistance to congested airports. It does not serve any of the three major airports in the New York metropolitan area, serving only Islip, N.Y., on Long Island. So these operations up and down the east coast would be a nice new market for Southwest. Kelly, CEO of Southwest Airlines said the East Coast "is our least-developed region and where we are trying to grow and have a lot of difficulty gaining access to markets, so this may be the opportunity for us." This could be another blow to Delta which has to convince their creditors that a $8 billion dollar bid by US Airways would not be as good as emerging a stand alone company. And the new news that Southwest and various other carriers are interested in the shuttle routes could help push the DOJ into allowing a merger. AZcentral

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