07-31-2009, 04:26 AM
Southwest in all probability has the resources to outbid Republic for Frontier. By taking over Frontier, Southwest would gain entry into Mexico and eliminate the only other low cost carrier in Denver and several other markets. Neither Southwest nor Frontier has ETOPS (transoceanic) certified aircraft, although some of Southwest's 737-700 planes could conceivably be reconfigured for such. Southwest's only foray into Hawaii was by codesharing on now defunct ATA. I have a friend who is in revenue management at Delta, and he has frequently said that Hawaii routes (being heavy on discounted leisure passengers and low on full-fare business types) are not profit centers, at least for the legacy carriers. With its lower cost structure, Southwest might be different, but they are all about making money. If they can't make a decent profit, they won't do it.
Virgin America, with its brand recognition, is another story. They could be a wild card in the Hawaii market, but will probably wait for the economy to improve.
Cheers,
Jerry
Virgin America, with its brand recognition, is another story. They could be a wild card in the Hawaii market, but will probably wait for the economy to improve.
Cheers,
Jerry