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Southwest Takes Effect on Long Island

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3-1999
No region would be proud to be described as overpriced and underserved. Yet, when Southwest Airlines recognized these characteristics in Long Island, we were happy to admit to them. Among the 171 cities that requested Southwest’s service last year, Islip was one of the few that fulfilled its criteria. Although no particular criterion ranks higher than any other — Southwest reviews each candidate airport as a whole, not by its components — it was the overpriced-underserved combination that might have tipped the decision in Long Island’s favor. Long Island MacArthur Airport also lies along Southwest’s route to Providence, Rhode Island, and Manchester, New Hampshire, and its current undergoing expansion will allow Southwest room to grow. According to LIA Transportation Chairman Larry Austin, if all goes well, Southwest is hoping to increase their 12 daily, direct flights from Long Island MacArthur Airport to 30.

"I’ve said it many times before: I think that Southwest coming into MacArthur Airport will utilize the facility and be very good for the Suffolk County economy," Austin added. "I don’t think that Nassau County residents will necessarily leave JFK and LaGuardia airports to come to Islip, but I have no doubt that it will benefit the surrounding areas." LIA Chief Economist Pearl Kamer concurs. "The improvement and expansion of Long Island MacArthur Airport and the addition of Southwest Airlines will improve Long Island’s linkages with the remainder of the country and make Long Island a more attractive business destination," she said.

In forecasting the number of potential local origin and destination travelers in a given city, Southwest looks at the area’s underlying economic strength. According to guidelines, an airport must have sufficient local traffic to support the airline’s operations profitably and be able to justify at least eight daily departures with start-up service. Southwest also avoids congested hub or slot-controlled airports. This maximizes the airline’s ability to sustain high on-time performance. The airport also must be convenient to travelers without significant gate, ground, or air traffic control delays. So far, so good. However, Southwest did not simply scan a list of airports and discover that Long Island MacArthur Airport met those criteria.

LIA Vice President for Legislative and Economic Affairs explained, "The LIA had been in discussion with the Town of Islip and Supervisor Pete McGowan for some time and supported his decision to bring in additional airlines to MacArthur." Indeed, the LIA has included on its annual legislative agenda, "Support the continuation of expanded operations at MacArthur and … expand access opportunities to MacArthur airport" but, as Pally pointed out, "We can hardly take credit for Southwest Airlines coming to MacArthur but we definitely offered our support and assistance and we’re glad that such a positive outcome has resulted."

Southwest Airlines Chairman, President, and CEO Herb Kelleher views the arrangement as a perfect match as well. "MacArthur Airport is an ultra-convenient facility for travel to or from Long Island and is the perfect fit with Southwest’s current route network," he stated. "People who live or work on Long Island can look forward to an exceptional travel value in Southwest Airlines." This phenomenon has been deemed by the Department of Transportation as the Southwest Effect — the dramatic increase in the number of people traveling to a given destination and the equally dramatic decrease in fares after Southwest begins serving a new market. Considering that their passengers are almost equally divided into business and pleasure travelers, this is likely to affect more than just the tourism industry on Long Island.

Islip Town Supervisor Peter McGowan remarked on this, "We are pleased to welcome Southwest Airlines to MacArthur Airport. Their presence confirms our belief that this facility is market-driven, not government-driven, and that MacArthur Airport is quickly becoming a vital link for Long Island’s transportation needs."

With any additional traffic at MacArthur Airport comes the concern about its effect on surrounding neighborhoods. However, Southwest assures that it will use only its quietest aircraft, the Boeing 737-700, from MacArthur when it begins its daily service on March 14. This year, Southwest will acquire 29 more, a large improvement from the three-jet airline it used to be when it got off the ground in 1971. Back then, co-founders Rollin King and Herb Kelleher put together a simple philosophy: to transport passengers to their destinations on time, at the lowest possible fares, and to make sure they have a good time in the process. The goals didn’t seem too lofty, but once airborne, earned 31 Triple Crowns — best on-time record, best baggage handling, and fewest customer complaints — as a result. What began as a service connecting Dallas, Houston and San Antonio now flies to 54 airports, including Long Island MacArthur, in 27 states.

"Why should our customers have to drive 45 minutes to take a 40-minute flight?" Kelleher asked in 1972, when Southwest transferred its service from Houston Intercontinental to Houston's Hobby Airport. It was a simple idea that, 27 years later, has blossomed into the nation's only major short-haul, low-fare, high-frequency, point-to-point carrier. Last month, Fortune magazine listed Southwest Airlines as the number-four company to work for in America. Long Islanders seemed to agree when hundreds stood on lines for hours at a recent job fair in Hauppauge to be interviewed for newly created jobs at MacArthur airport.

"Long Island is one of the best places in the country to live and do business," added LIA President Matthew T. Crosson. "It's gratifying that Southwest Airlines, one of the highest-ranked airlines, thinks so too."



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