SWA interested in KPIT

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http://www.post-gazette.com/pg/pp/03281/229117.stm

Southwest keeps eye on Pittsburgh market

Wednesday, October 08, 2003

A top official for Southwest Airlines says he sees opportunities for
expansion at Pittsburgh International Airport, where US Airways is
threatening to shut down its hub in January.

John Jamotta, Southwest director of schedule planning, told the Dallas
Morning News that the discount airline sees opportunities in St. Louis,
where American Airlines is scaling back its hub, and in Pittsburgh,
where US Airways could close down its hub if it doesn't get the debt
relief it is seeking.

Jamotta could not be reached yesterday.

Southwest spokeswoman Christine Turneabe-Connelly characterized the
airline's interest in Pittsburgh as "no more or no less" than its
interest in other cities it is considering.

"Certainly we're interested in what's going on in Pittsburgh but no
more or no less than we are in other cities," she said.

In the Dallas Morning News, Jamotta said the carrier plans to announce
one new destination at the end of this year and will consider expanding
at airports where its competitors are cutting back. It also may boost
its presence in Florida, where it now flies dozens of daily flights.

Southwest has been one of a number of carriers Allegheny County
officials have been courting to start or expand service in Pittsburgh,
given the US Airways situation.

To date, Southwest has not committed to starting any service here,
county Chief Executive Jim Roddey said.

"I think that Southwest is interested in several markets. But they are
very deliberate and I'm sure they are waiting and watching to see what
happens with US Airways," he said.

Roddey said several discount carriers have expressed an interest in the
Pittsburgh market. He believes that "either one or more will initiate
or increase flights here."

He added he hoped Southwest would start service in Pittsburgh even if
US Airways decides to retain its hub.

However, Southwest rarely enters a market dominated by a single hub
carrier. Turneabe-Connelly said the competitive environment at an
airport is one of a number of factors the airline considers in deciding
on an airport.

Another important factor is cost. In a background paper on how it
selects a new city for service, Southwest stated that a "particular
airport must be in line with the airline's cost structure."

On average, the airline wants a per-passenger cost no higher than $4 to
$5, although that could vary from city to city.

That could pose a problem for the Pittsburgh airport, where the
per-passenger cost is now $9.56 and could end up being far higher if US
Airways ends its hub operation and the amount of connecting traffic
drops dramatically.

Other factors Southwest considers include the quality and availability
of airport facilities, the amount of local traffic, whether the market
is overpriced and under-served, and how the city would fit into the
airline's existing network.

While Pittsburgh without a US Airways hub might be more attractive to
Southwest, the airline also will consider those other factors before
deciding whether to enter the market, Turneabe-Connelly said.

"We're very conservative about our growth," she said. "We're very
deliberate in watching customer demand and then following that customer
demand."

As it tries to recruit new carriers, the county also is trying to reach
a deal with US Airways to lower its costs at the airport.

The talks started after US Airways rejected all of its airport leases,
effective Jan. 5, before emerging from bankruptcy.

If no deal is reached by that date, the airline could shut down its
hub. US Airways is seeking to cut the airport's $673 million in debt by
$500 million.

The state and the county are expected to respond with a counter
proposal later this month.

BL.
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