October 28 - November 3

Current Issue

IBLV Blogs

Special Publications

Search In Business

In Business on TV

The List

Book of Lists

About InBusiness



Tourism and Travel
Don't bet on a Southwest move to Las Vegas
By Richard N. Velotta / Staff Writer

A Southwest Airlines jet, top, taxis to a gate as another Southwest jet waits to be cleared for takeoff at McCarran International Airport.
Photo by Steve Marcus

Anyone who buys into the theory that Southwest Airlines would consider moving its corporate headquarters to Las Vegas is going to be disappointed.

Although McCarran International Airport is the busiest station in Southwest's system, that won't be enough to convince the airline's brass to move to Las Vegas from Dallas, which has been Southwest's home since it was founded in 1971.

Recent published reports speculating that Southwest would consider moving here are wishful thinking. Those hoping Southwest would move to Las Vegas may as well dream about convincing Microsoft Corp. to move here because it rains so much in Redmond, Wash., or that Ford Motor Co. should build cars here because so many Las Vegans like Ford Mustangs.

It's true that Southwest loves Las Vegas; the city has helped the airline make a lot of money since it started flying here in 1982. But it doesn't like Las Vegas enough to call the moving vans.

The reason some are hoping Southwest and its 5,500 Dallas-based workers would become Nevadans is that Herb Kelleher, the company's founder and chairman, remarked that Southwest needed to leave the option open of leaving Dallas if the company is unsuccessful in its political battle to repeal the Wright Amendment.

The airline has been fighting for nearly a year to repeal the 26-year-old legislation that prevents Southwest from offering long-haul flights from Dallas' Love Field, home of the company's corporate headquarters. Southwest has said Las Vegas would be a likely destination from Dallas if the Wright Amendment were lifted.

Although some translated Kelleher's remark about keeping options open as a signal that Southwest is moving out, the reality is that the airline has made no movement toward a corporate move and probably wouldn't make one even if the Wright Amendment fight doesn't go Southwest's way.

Ed Stewart, a spokesman for Southwest, said Kelleher's comments came in response to a reporter's question about whether Dallas could remain a viable headquarters if the Wright Amendment remained in place.

"He just answered the question honestly, but it started a lot of wild stories," Stewart said.

Stewart said Las Vegas became prominent in the discussion because it was the first Southwest city to have 200 daily operations.

While it wasn't Kelleher's intention to set off a frenzy of speculation -- a common practice whenever Southwest begins talking about serving a new city -- he has a corporate responsibility to watch out for the best interests of shareholders.

Once Kelleher's remarks hit the street, most who follow the aviation industry knew that it was just one more bizarre twist in the Wright Amendment story, which has become a media circus. Remember, this is the same issue that has some members of Congress wanting to shut down Love Field and others retaliating with proposed legislation to shut down the hometown airports of those proposing to close Love Field.

After Kelleher's remark, other Southwest executives quickly followed up with reality: Southwest has no intent of leaving Dallas.

And, for those who think Las Vegas is a likely spot for a move, consider these factors:

• McCarran International Airport officials haven't called Southwest about moving to Las Vegas.

• In the past year, Southwest restructured some of its marketing efforts and moved some employees OUT of Las Vegas. The airline's focus for the southwestern United States is now in Phoenix. That city, incidentally, is growing just as rapidly as Las Vegas for the company and would be a more likely place for any corporate moves.

• Southwest recently expanded its corporate headquarters in Dallas. Would the company so quickly abandon that investment?

• The company's Texas roots would no doubt make officers consider another Lone Star State location before looking elsewhere. Houston, home of Continental Airlines, comes to mind.

One thing that gives hope to those who would want Southwest to move here is the company's penchant to change its mind. Exhibit A in that matter is last week's surprise announcement that Southwest would begin serving Denver International Airport early next year.

Southwest served Stapleton International Airport in Denver for three years beginning in 1983. When Denver International was built, the airline said it wouldn't fly there because operational costs were too high. I think Kelleher's words were, "There's no way we'll go back to Denver."

But now, something has changed that makes it worth considering. In the weeks ahead, some of those matters are likely to make it to the forefront.

In the meantime, Southwest will gear up to compete in a market that is a stronghold for United Airlines and its Ted discount subsidiary as well as Denver-based discounter Frontier Airlines, which uses Denver International as a hub for operations all over the country, including flights to and from Las Vegas.

In a few weeks, we'll see whether the so-called "Southwest Effect" takes hold in the Denver market. That's the term that has been given for the reduction of ticket prices in a market that Southwest enters. We'll also find out in a few weeks whether Las Vegas would be one of the markets Southwest serves nonstop. The smart money is saying it will.

Some airline observers are predicting that Southwest would start up with about 13 flights a day from Denver with Baltimore, Phoenix, Orlando and Oakland, Calif., as potential nonstop destinations in addition to McCarran. I think I'd add Chicago's Midway Airport to that list. It's a Southwest market that is growing faster than Las Vegas and Phoenix at present.

Richard N. Velotta covers tourism for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at (702) 259-4061 or by e-mail at velotta@lasvegassun.com.

IBLV Homepage

 

Click here for problems or questions. Read our policy on privacy and cookies.
Advertise on Vegas.com. Work for Vegas.com.
All contents © 1998 - 2008 Vegas.com
The Most Visited Place on Earth