Southwest officials say they might be interested in buying pieces of other carriers if the Justice Department requires United or American to sell some of their assets before they split up US Airways. Such assets mostly likely would include gates or takeoff and landing slots currently held by US Airways, analysts said. Southwest executives say, at least publicly, that because of their cost-cutting prowess they can compete even if the rest of the industry consolidates. But they'd rather not put their bravado to the test. We can make money charging low fares, and they can't.
Size is an advantage.
Southwest executives also echo industry critics who charge that consolidation will harm consumers, leaving passengers with higher fares and fewer travel options. Both are longtime Southwest executives and Kelleher confidants. Company directors never even interviewed an outside candidate for either job, said Kelleher, who will remain chairman of the board under a new three-year contract. Southwest's shares fell 3 percent on news of Kelleher's partial departure, but that was in line with the day's performance for the Dow Jones transportation index as a whole. Analysts said investors were relieved that the question of Kelleher's successor finally had been settled and that an insider was chosen.