Southwest bids for slots at LaGuardia
Business First of Columbus
Southwest Airlines Co. said Wednesday that the airline is bidding to acquire ATA Airlines’ rights to 14 slots at LaGuardia Airport, a move that would allow the Dallas-based airline to conduct seven daily round-trip flights into New York.
Southwest (NYSE: LUV), Port Columbus International Airport’s largest passenger carrier, submitted a $7.5 million bid, specifying that the bid does not include an intent to acquire ATA aircraft, facilities or management of ATA employees. Indianapolis-based ATA was one of three carriers, including Columbus-based Skybus Airlines Inc., to fold in the spring, collapsing under the weight of a sluggish economy and record-high fuel prices.
Southwest filed the bid with the U.S. Bankruptcy Court in Indianapolis. The court must approve the bid, as well as ATA’s reorganization plan, before Southwest can acquire the additional slots.
“It is our intent, with the successful conclusion of the transaction, to make plans to initiate service from LaGuardia,” CEO Gary Kelly said in a release. “Even in this volatile environment, we have said we must monitor the competitive landscape and take advantage of prudent market opportunities.”
Port Columbus offers 18 daily non-stop flights to LaGuardia from American Airlines Inc. (NYSE:AMR), Delta Air Lines Inc. (NYSE:DAL) and US Airways Group Inc. (NYSE:LCC)
A quarter of all passengers at Port Columbus through September flew Southwest. The company in 2007 recorded a profit of $645 million on $9.86 billion in revenue.
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