Southwest reports 'solid bookings' for GSP flights

By Dick Hughes  

FEBRUARY 11, 2011 9:55 a.m. (0)

Southwest Airline’s bookings ahead the March 13 inauguration of service from Greenville-Spartanburg and Charleston “look very strong,” said Gary Kelly, the airline’s top officer.

“We think South Carolina is going to be a wonderful addition to our route,” he told a news conference at the 122nd annual meeting and dinner of Greenville Chamber at the Carolina First Center Tuesday.

Kelly, who is Southwest’s chairman, president and chief executive officer, was the Chamber’s keynote speaker.

In speaking to the Chamber, Kelly was before a business crowd enthralled with Southwest’s decision to bring its low-fare service to GSP Airport, which has lost market share to Atlanta and Charlotte where airfares are so much lower.

The absence of a competitive low-cost carrier has made GSP one of the nation’s most costly airports in terms of fares, which the business community views as a detriment to attracting corporate development.  It is hoped Southwest will change that.

“This is huge for our region,” said Ben Haskew, Chamber president and CEO.

When Southwest adds seven daily departures, five of which will be non stops to GSP, Southwest will increase its cities served to 71, Kelly said.  Shortly after, he said, Newark International Airport will be added as the 72nd.

The acquisition of Air Tran, which is expected to close in the next quarter, will add 38 destinations and give Southwest a strong presence at Atlanta, where Air Tran has a major hub.

“We specialize in two things,” Kelly said. “We specialize in great service and low fares, and it is because of our people. Every company says that, but if you look at our 40-year history I think I can prove it to you.”

The only aircraft the airline flies is Boeing 727 jets, and that’s what GSP flyers will see.  “We are proud of the fact that we don’t fly regional jets,” he said.

He said Southwest, which made a profit of $550 million last year and has been consistently profitable for the last 37 of its 40 years in the business, has a unique record in comparison with other airlines.

“We made it through the worst economy without a furlough, without a pay cut and without taking peoples’ health care coverage away,” Kelly said.

Because the company takes good care of its employees, he said, “they take good care of our customers.”

He also noted that unlike some airlines that walked away from cities when the economy turned bad, “we didn’t close any cities.  When we make a commitment to a community, we do our darndest to stick with it.”

Kelly said Southwest has no immediate plans to add flights and destinations out of GSP but the market will determine growth.

“Normally, we let things develop for at least a year before we get so bold as to add more capacity in the market.  We simply monitor what customers like and don’t like.”

He said Southwest keeps a close watch on what competitors do when it enters a new market.  “If competitors pull out of the market, that’s an obvious opportunity for us to come in and replace that with more seats. If competitors add seats to the market, it makes it tougher for us to justify adding capacity.”

In terms of employment, Kelly said 35-40 employees will staff the Greenville-Spartanburg operation but initially no one will be hired locally.

“Many times we open new cities with transfers of Southwest employees from other parts of our system.  We give them the option to do that first.”

But, he said, with normal turnover open positions will be filled locally.

Kelly said the solid bookings that Southwest is getting for flights out of GSP suggest the airport the airport may need to make improvements, which it is planning to do.