Southwest CEO Gary Kelly says it’s “absolutely imperative” for his carrier to complete its planned merger with AirTran, according to various news stories today.
Kelly’s comments came in testimony to the Senate Antitrust, Competition Policy and Consumer Rights subcommittee during a Friday hearing in suburban Milwaukee. The hearing was requested by Sen. Herb Kohl (D., Wis.), who acknowledged concerns about how the merger would affect competition in his state. If the merger is successful, the “new” Southwest would likely become the top carrier at General Mitchell International Airport, Milwaukee Wisconsin’s busiest airport.
The creation of an even bigger Southwest Airlines that reaches into every major and secondary air travel market in the U.S. is not good news for its competitors. Not only will the nation’s leading discount carrier grow by about 25% overnight with its acquisition of AirTran, it will gain or broaden access at a number of airports, including New York’s LaGuardia and Washington’s Reagan National airports, where carriers traditionally charge premium fares.
Southwest’s deal to buy AirTran is not likely to run into trouble with government regulators on antitrust grounds, analysts say. The Justice Department approved both the United-Continental merger and the Delta-Northwest merger with ease.
