Southwest attack American at St Louis

Southwest Airlines has announced that effective May 9, 2010 the LCC will add five new routes from its base in St Louis. The new additions will be

2 Daily St. Louis - Los Angeles
2 Daily St. Louis - Nashville
1 Daily St. Louis - New Orleans
1 Daily St. Louis - San Diego
1 Daily St. Louis - Seattle

Four of these five routes are currently operated by American Airlines, which is the only carrier operating the segments, and Southwest decision to opearate these sectors will put pressure on them on the following routes;

• STL-LAX- 21 weekly frequencies
• STL-BNA- 15 weekly frequencies
• STL-MSY 28 weekly flights
• STL-SEA- 6 weekly flights

In terms of capacity in St Louis, AA is currently the largest carrier with a 30% market share 523 flights per week, followed by Southwest Airlines which has a 26% market share with 464 weekly flights from the Missouri Airport.

Interestingly, the two carriers only operate on three destinations from STL, with the Florida Airports of Orlando and Fort Myers, Oklahoma City is the third airport with AA and WN operating from STL.

The Orlando service has Southwest with the larger passenger share 47%, however a yield analysis shows that their average fare of 124USD (one way) is smaller than that of AA with an average one way yield of 194USD, eventhough their pax share is smaller at 32%.

In Oklahoma, a non leisure destination, Southwest has a market share of 65%, however yields are siginificantly lower, 101USD v 172USD one way.