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Nov 7, 2008 7:57 am US/Central
Southwest Lays Out Plans For Minneapolis Service
BLOOMINGTON, Minn. (AP) ―
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Passengers wait in line at Minneapolis-St. Paul International Airport on Aug. 10, 2006. About 100,000 people travel through MSP International most days on average..
CBS
Twin Cities travelers are getting a look at what it will mean to have Southwest Airlines Co. come to their town.
Southwest on Thursday announced its fares and schedule -- eight flights a day to Chicago Midway, as low as $69 each way, although walk-up fares will be higher.
Southwest's entry into Minneapolis has been closely watched because it is an assault on a so-called fortress hub of Northwest Airlines, which is now a part of Delta Air Lines Inc.
Northwest has a reputation for matching competitor prices and adding extra flights when its hubs are threatened. Last month Northwest executives said they would do both of those things on the Chicago route once Southwest's service starts on March 8.
Now under Delta's control, Northwest matched the Southwest fares, according to a check of their Web sites. Delta spokeswoman Betsy Talton said the lower fares would begin Feb. 28. She said she didn't immediately know whether Delta was adding flights on the route as well.
"Delta is a fierce competitor and we welcome competition in any market that we service," she said. "We think that customers will continue to value the combined Delta-Northwest network."
One thing that has hurt past competitors on that route -- most notably defunct ATA Airlines -- was a lack of frequent flier miles and access to a larger group of cities. Southwest said travlers will be able to buy connections to at least 30 cities through Chicago; Talton said Delta offers 139 destinations from Minneapolis, including 14 international cities.
Whether Southwest's new fares last will depend on the customer response, said Ron Ricks, executive vice president for corporate services at Southwest.
Landing the discount carrier was a coup for Minneapols-St. Paul International Airport. Travelers here have generally believed they pay higher fares because Northwest has dominated air travel.
Southwest is cutting capacity, and on Thursday said it is getting rid of 39 round-trip flights a day, but adding a total of 70 new roundtrip flights in Minneapolis, Chicago, and the Baltimore-Washington area. Southwest said four city-pairs lost nonstop service with the cuts.
"We are likely to be in for some serious fireworks on prices out of Minneapolis in the coming days for spring travel" FareCompare.com CEO Rick Seaney wrote on his blog.
He wrote that the cheapest fare on that route for Northwest, American and United is round trips for $376, which works out to $188 each way. The cheapest one-way fare is $426, Seaney wrote.
"The legacy airlines will quickly have to restructure their airfares, by offering one-way fares instead of the two-night minimum stay roundtrip fares they currently file -- likely matching Southwest's new price points," Seaney wrote.
Southwest shares fell 63 cents, or 5.4 percent, to close at $11.09 on Thursday. Delta shares closed down 96 cents, or 9.2 percent, at $9.52.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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