Copyright 2000 The Houston Chronicle Publishing Company
The Houston Chronicle
November 15, 2000, Wednesday 3 STAR EDITION
SECTION: BUSINESS; Pg. 2
LENGTH: 304 words
HEADLINE:
Southwest has eye on US Airways assets
SOURCE:
Bloomberg News
DATELINE: NEW YORK
BODY:
NEW YORK - Southwest Airlines Co., the
largest low-fare carrier, said it might bid for certain assets that UAL Corp.'s
United Airlines and US Airways Group might be required to sell
to win regulatory approval for their merger.
Dallas-based Southwest has been expanding in the eastern U.S. since 1998
after establishing a route system primarily in southwestern and West Coast
markets. Houston-based Continental Airlines and Delta Air Lines have also
expressed interest in the assets.
"We're not interested in coming to La
Guardia," Southwest Chief Executive Herb Kelleher said at a Salomon Smith Barney
transportation conference. "But there are other places, if they said you have to
give up half your gates, we'd be interested in looking at them."
Kelleher specifically mentioned Charlotte, N.C. Southwest added
Raleigh-Durham to its route system in June 1999. The carrier typically adds
about two cities a year to its system, although Kelleher said it could add two
next year in addition to West Palm Beach, Fla., where it will begin flights Jan.
21.
Continental, the fifth-largest U.S. carrier, last month offered to
pay $ 215 million for Washington assets that US Airways plans to split off as
part of its proposed purchase by United. As part of the agreement to combine
with United, US Airways said it would sell the assets for $ 141 million to
Robert Johnson, a US Airways board member and founder of Black Entertainment
Television.
United and US Airways had hoped the asset sale, which
includes takeoff and landing slots at Reagan Washington National Airport, would
ease regulators' antitrust concerns.
Delta Chairman and Chief Executive
Leo Mullin said yesterday at the same conference that his carrier is ready to
bid on certain United/US Airways assets, compiling a list of 15 possible
candidates.
TYPE: -LINKS-
LOAD-DATE: November 16, 2000 
