Southwest keeping low fares, unveils Nevada-themed plane

Thursday, June 3, 1999 | 11:32 a.m.

The airline that flies the most passengers to Las Vegas has no plans to raise fares.

Southwest Airlines Chief Executive Officer Herb Kelleher delivered that news on the same day he delivered a new airplane to the state -- a Boeing 737 painted in the theme of the Nevada state flag.

Southwest is spurning an industry move to raise fares. This week, Continental, American, Delta, Northwest, United and TWA increased their seven-, 14- and 21-day advance fares by 4 percent.

It was the third fare increase of 1999 and will result in tickets costing about 11 percent more since the beginning of the year.

"We have been very successful in our strategy of offering low fares to fill our airplanes," Kelleher said in the shadow of Nevada One, a fresh-from-the-factory jet unveiled to 600 guests of the company.

Noting that flights to Las Vegas continue to yield the lowest profits in the United States, Kelleher said volume is how Southwest will compensate for lower revenue per seat.

"Southwest Airlines has not participated in the recent fare increases," Kelleher said. "And we know that it is very important to this state, to its hotels and its casinos, to get people here."

Kelleher met last fall with representatives of the resort industry to gauge Las Vegas' commitment to working with his airline. The meeting resulted in an announcement of several new long-range flights to Las Vegas. The Dallas-based carrier added Saturday flights between Las Vegas and Baltimore, St. Louis, Tampa and Orlando, Fla.

Since then, Southwest announced it will add eight more daily flights this summer, bringing the total to 148 every day in and out of McCarran International Airport. America West Airlines, the No. 2 carrier at McCarran, has about 78 flights a day.

Beginning Sunday, Southwest will add a third daily flight to Tucson, Ariz., and a second daily flight to Seattle. The airline will add a second daily flight to Austin, Texas, a third daily flight to Nashville, Tenn., and two flights to Chicago's Midway Airport July 6 and a ninth daily Reno flight and a nonstop flight to Baltimore Aug. 5.

The 700 series of the Boeing 737 is designed for longer flights. That's the type of plane that was painted with the dark blue field of the Nevada flag and the "Battle Born" insignia along the fuselage and engine. Lt. Gov. Lorraine Hunt accompanied Kelleher on a flight aboard Nevada One from Reno, where the jet made its statewide debut.

The jet left the Boeing factory Wednesday morning. Hunt was delighted that Nevada is getting a "$35 million billboard" that will fly throughout Southwest's system of 54 cities in 28 states.

Kelleher said although Southwest customers are cost-conscious, they're great customers for casinos.

Citing a study conducted by Mark Travel Corp., Southwest's travel packaging partner, Kelleher said Southwest customers spend $70 a day more than the average air passenger and gamble an hour longer per day than the average passenger.

Mark Travel owner William La Macchia was among the guests at the Nevada One unveiling. He arrived in Las Vegas on Tuesday to celebrate a milestone for one of his own companies. Sun Country Airlines, operated by his son, Bill La Macchia Jr., became a scheduled carrier after handling charter flights only since 1983.

Kelleher said Southwest doesn't compete head to head with Sun Country, although La Macchia's airline flies a Dallas-to-Las Vegas route. Southwest and Sun Country use different airports in Dallas and Southwest isn't permitted to fly routes from Dallas' Love Field to destinations beyond states adjacent to Texas.