Southwest, which flies more domestic passengers than any other airline, is taking steps towards worldwide travel. For example:
—The airline is picking up AirTran’s flights to Mexico and the Caribbean after buying its rival last year.
—It’s getting a new reservations system to handle overseas bookings.
—And it is seeking to build an international terminal at Houston’s Hobby Airport, where it says it could ultimately add 25 flights abroad a day.
This is a major shift for Southwest, which pioneered its success on low-fare US service. It means the one-time niche carriers is increasingly competing with the big network carriers.
"Flying into more congested markets, now trying to go overseas … it seems like they’re becoming a legacy carrier," Basili Alukos, an airline analyst at Morningstar, told USA Today. But if Southwest can replicate its domestic network and success internationally, it opens up new markets.
Having a footprint beyond the US. was a key reason Southwest decided to buy AirTran, says Bob Jordan, Southwest’s executive vice president and chief commercial officer.
"We have always wanted to get to a point where we added international capabilities," said Jordan, He added that AirTran’s staff, aircraft, and perch at Atlanta’s Hartsfield-Jackson International, the world’s busiest airport, also figured into the decision to merge.
Combined with AirTran,. Southwest has roughly 25% of the US market in terms of passenger traffic, Jordan says. While there is still room to grow domestically, he said "You do get to a point where the next best set of destinations becomes international."
By David Wilkening
