Saturday, February 09, 2019
TKC EXCLUSIVE!!! NEW KCI 'DEAL' SELLS OUT VOTERS TO SOUTHWEST!!!
One again KICK-ASS INSIDERS share insight, analysis and more deets on the new KCI deal that offers a distinct advantage to one airline over the next.
Here's the word sent our way . . .
NEW KCI: FEAST FOR GREAT WHITE SOUTHWEST?!?!
The recent airport pseudo-deal meeting featured a representative from exactly one airline. Steve Sisneros of Souhwest said he was representing all airlines at KCI and he reckoned a “majority” of these would sign a deal with the airport by Feb. 25th. Interesting how all the airport’s carriers ostensibly are represented by Southwest, given that the competitive relationship between all of these is more like the movie Reservoir Dogs. Think of Southwest as the great white shark in the ecosystem of airlines competition. As one observer put it, “They consume all the gates at the airports they fly to and effectively keep out other competition.” Nor is Southwest shy about its plans to eat the big boys’ lunch (meaning legacy carriers like American, Delta and United): “We’ll take customers from the legacy carriers,” … We’ll grow faster than they will.” This growth also includes reports that Southwest plans to dramatically ramp up international flights, a current stronghold of the legacies.
It’s easy to see why Southwest would like to dominate a new KCI. A shiny new hub at the geographic center of the U.S would grow a bigger ecosystem for Southwest. That might sound swell to Southwest fans, but not so fast. Are other KCI carriers like Delta, American and United eager to help pay for a new terminal, if makes them a hot lunch for the great white? The Southwest rep at today’s meeting didn’t bring a contract with other airlines’ signatures, just a belief they will sign by Feb. 25th. Why didn’t we hear directly from them?
Sometimes competitors win by not competing. What does this mean for air travelers? Two airlines have already said they won’t pay for the new airport, raising questions about continued service to an expensive new KCI. Another way to deal with expensive is to make the hooples pay more, a lot more. Airlines always deny guilt of course, but then rush to write big settlement checks to keep their case from going to a jury.
When the much-awaited deal arrives, will anyone in City Hall be looking to see if serves the flying public? Would they even know or care?
Developing . . .