NYTimes.com Article: Southwest Shifts Schedules

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Southwest Shifts Schedules

August 24, 2004
 JOE SHARKEY





SOUTHWEST SHIFTS ITS SCHEDULES Southwest Airlines said it
would cut 88 daily flights from its fall schedule to
concentrate more of its planes on highly competitive
markets like Philadelphia, the US Airways bastion where
Southwest began service May 9. The schedule changes will
trim flight frequencies in small and medium-size cities
like Albuquerque; Kansas City, Mo.; New Orleans; Little
Rock, Ark.; and Austin, El Paso and Lubbock, Tex. But big
hub airports like Los Angeles International, Houston
Intercontinental and Dallas-Fort Worth International will
also lose a small number of daily flights, said Ed Stewart,
a Southwest spokesman. "Philadelphia is certainly one of
the places where we are growing faster than any of our
other city openings in recent history," he said. Other
city-pair routes on which Southwest will add flights
include: Hobby Airport at Houston and Orlando, Fla.;
Houston Hobby and Los Angeles; Baltimore and Nashville;
Chicago Midway and Tampa, Fla.; Las Vegas and Tucson,
Ariz.; and St. Louis and Oklahoma City. Joe Brancatelli,
the publisher of the business-travel Web site
JoeSentMe.com, said Southwest's move made sense. "It's what
smart airlines do," he said. "Only in the airline industry
is inventory management considered a radical proposition."

UNITED AWARD MILES It just became easier to get a free
mileage award on short hops on United Airlines. With
business sagging on short-haul routes dominated by low-cost
airlines, United said yesterday that it had reduced to
15,000 from 25,000 the number of Mileage Plus miles needed
to claim a free coach seat - but only on nonstop round-trip
flights of 750 miles or less each way.



GAS MONEY With crude oil prices threatening to hit $50 a
barrel and airline fuel costs doubling in the last year,
some foreign airlines are rushing to add or increase fuel
surcharges. Qantas Airways said last week that it was
increasing its surcharge on international tickets to $22
from $15 a segment and to $10 from $6 for travel within
Australia. This followed a move by Lufthansa, which said it
would impose, effective today, a fuel surcharge of $8.65
for intercontinental and other long-haul flights, and $2.50
for each leg of European flights. Last week, British
Airways raised its fuel surcharge on long-haul flights to
$11.05 a leg from $4.60. British Air's surcharge of $4.60
for short-haul flights was unchanged. Faced with
competitors who won't go along, many airlines in the United
States have tried frequently, and so far unsuccessfully, to
impose across-the-board fuel surcharges.

DESERT STORAGE The rise in air travel means that fewer
planes are being mothballed in desert storage areas in
California and Arizona. SpeedNews, an aviation industry
newsletter, said that 2,390 commercial aircraft were in
storage in July, compared with 2,674 a year earlier.
Narrowbody aircraft were the most popular types restored to
service or otherwise removed from storage. There were 943
narrowbodies in mothballs in July compared with 1,214 last
July, SpeedNews said.

PITTSBURGH ON SALE Ratcheting up the fierce low-fare
competition out of Washington Dulles International Airport,
Independence Air is running a fare sale that includes a $29
one-way price for nonstop flights to and from Pittsburgh,
which has been reeling from service cutbacks by US Airways.
Tickets must be purchased by Aug. 30 and at least 14 days
in advance of travel, which must be completed between Aug.
29 and Dec. 19.

HOTEL LOYALTY Hotel chains spend millions of dollars a year
to maintain guest-loyalty programs, but a recent study at
Cornell University's School of Hotel Administration
questions whether they are getting their money's worth. The
study found there was only "a weak connection" between
guest satisfaction and loyalty. In addition, business
travelers were among the least loyal customers, according
to the authors, Judy A. Siguaw and Iselin Skogland. They
found that the main factors affecting repeat business were
hotel design, amenities and service.

JOE SHARKEY

http://www.nytimes.com/2004/08/24/business/24memo.html?ex=1094358312&ei=1&en=63f1b077b7dd6224


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