Southwest adds Milwaukee, fourth new 2009 destination despite 'no growth' strategy

Southwest Airlines announced yesterday that it will start service in November or December at Milwaukee, a market targeted for growth this year by rival AirTran Airways.

Wisconsin's largest city is the fourth new destination SWA will add this year despite not growing capacity or its fleet. The LCC said it will "offer multiple destinations" from MKE. Speaking yesterday at the annual shareholders meeting, available via webcast, Chairman and CEO Gary Kelly said operating at MKE will "help us better serve the northern Chicago area and be a wonderful complement to our Chicago Midway service." SWA launched service at Minneapolis-St. Paul in March with eight-times-daily service to MDW and next month plans to start New York LaGuardia flights with Boston Logan to follow in August (ATWOnline, April 17).

Kelly said the new destinations "will add tens of millions of dollars in incremental revenue in the first year." He emphasized that SWA is not veering from its strategy this year of lowering capacity and not growing its fleet of 535 737s. It will redirect aircraft to its newest destinations by "pruning" existing routes.

AirTran Chairman, President and CEO Bob Fornaro said last month that the carrier will continue to build its presence at Milwaukee, where it plans to double capacity this summer. "The timing is right for us to finally get a foothold in the Midwest," he told analysts and reporters (ATWOnline, April 23).

AirTran said yesterday that it will occupy six gates at MKE this summer to operate 34 daily weekday flights, representing a 57% year-over-year increase in its MKE activity. Earlier this month it began operating flights from MKE to MSP and Branson, Mo., and today will launch service from the airport to Denver and St. Louis. Additional flights from MKE to LGA, Baltimore, San Francisco, Seattle and Tampa/St. Petersburg will be started this summer.

MKE Director Barry Bateman said that SWA's entry goes a long way toward "further solidifying [the airport] as Chicago's third airport."