Southwest Airlines announced it will cease operations at San Francisco, effective 5 March. Southwest says it will shift the majority of its 14 daily flights to area airports Oakland, San Jose and Sacramento, with Orange County, Salt Lake City and Las Vegas also receiving additional flights.
The carrier explained the move by citing disappointing financial results at San Francisco, burgeoning demand elsewhere in the northern California region and endemic delays at the airport which rippled throughout its system, causing delays at downline stations. Southwest also expressed frustration at its inability to gain access to adequate terminal facilities, especially gates, at the airport.
Airline analysts, however, were less sure, wondering if the pullout - one of only four in Southwest's history - represents a chink in chairman Herb Kelleher's armour. In addition to Detroit City Airport (which Southwest vacated to move to Detroit Metro Airport) and Beaumont/Port Arthur, Texas, Southwest also pulled out of Denver.
As with San Francisco, the low-fare champion put the decision to leave Denver down to unacceptable operational delays at the airport. However, analysts now wonder if competition with United Airlines - which maintains hubs at both - might be a major factor. If so, the development would spur a change in industry thinking about the low-cost, low-fare outfit, which has to date taken as gospel Southwest's statement that its only real competition is the automobile.
Source: Airline Business
