Southwest moves in on New York City

Southwest Airlines (WN) just announced that they're moving in on New York City's LaGuardia through the purchase of bankrupt ATA's slots. The purchased slots would be enough for seven round trip flights out of New York City per day. Says spokesperson Paula Berg:

"Through a stock purchase acquisition, Southwest would get several assets of the reorganized ATA Airlines, including the rights to 14 LaGuardia
slots, and various other assets including training materials and
trademarks, etc. No aircraft, facilities, or employees are included."

Bankruptcy courts and the legal hodgepodge still have to approve reorganization of the defunct ATA and the subsequent purchase of slots by WN, but at this point, the airline is pretty confident that they're headed for the Big Apple.

So what does this mean for the New York traveler? As the best-hedged and one of the few profitable airlines in operation today, Southwest has the advantage of undercutting the competition's fares, effectively forcing other airlines to compete and drop their prices out of the city. So even if you aren't a big fan of WN, you should be happy that they're driving down the price of tickets across the bar.

It should take a few months for details to develop on when WN will move in (they're being tight lipped about any schedule.) We'll let you know when the plan comes together.

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