Where Will Southwest Go?

Interviewed Wednesday by the Associated Press, Southwest Airlines Chief Executive Gary Kelly predicted "decent odds" the carrier will add a third major hub to its schedule by next fall. Southwest recently announced its intentions to begin service to Minneapolis-St. Paul next March and New York's La Guardia by summer.   

In its search for a new destination, Kelly said the airline will be evaluating the efficiency, on-time performance, and cost management of prospective airports. "Efficiency at the airport is the key, and when we find that - that will be the sweet spot," Kelly said.

The announcement of new service comes at the same time some of Southwest's flights to other airports are being cut in response to rising costs and shrinking demand. Kelly said, "We want to continue to grow customers and to grow routes while adjusting to the realities of the world."

While the airline is primarily focused on domestic routes, Kelly spoke of the possibility of securing more codeshare partnerships, for Hawaiian and Caribbean destinations. Earlier this year, Southwest reached agreements with WestJet, for service to Canadian destinations, and Volaris, for service to Mexican destinations, slated to begin by late 2009 and early 2010, respectively.

Kelly said Southwest "would love to have a codeshare in Europe or Asia, but no work is underway" at this time for transcontinental partnerships, the AP reported.

Alluding to the global recession and frozen credit markets, Kelly said, "We have slowed our growth dramatically this year, and just in time. We are prepared to act in 2009."

FMI: www.southwest.com, www.westjet.com, www.volaris.com.mx