Southwest Airlines ending contract with state

Friday, Dec. 19, 2003 | 9:43 a.m.

CARSON CITY -- As of Jan. 1 Southwest Airlines is ending its contract with the state of Nevada for special rates on flights between Reno and Las Vegas.

But the state will probably be able to save money.

State Purchasing Director Greg Smith said Thursday that Southwest "has been good to us" but the company made a decision 10 months ago to no longer offer special contracts to large corporations and governments. He said it went against their core belief that every passenger should be treated the same -- "first come, first served."

The state booked about 35,000 round-trip flights between Reno and Las Vegas this year worth about $6 million to the airlines. The contract called for $180 for a round trip but it gave the state official the flexibility of canceling or changing the flight schedule without any extra cost.

"We will now book over the Internet," Smith said. "We more than likely will get better prices as long as we give a week to two weeks notice. But we lose flexibility."

He said he has seen fares for as low as $80 for a round-trip ticket between Las Vegas and Reno. But he said the state would pay extra if the individual changes his schedule after booking the flight, just as regular customers do.

"We will pay the difference between the (Internet) rate and the walk-up rate which may be $50," Smith said.

He said the contract that allowed change in schedule was a "big perk." A person may book a flight at 4 p.m. but arrive at the airport at 2 p.m. and be able to catch an earlier flight at no extra cost.

"But overall if we manage it efficiently, we will see savings," he said.

"People have go to be sure when they make their booking they are ready to roll," he said.

Nevada is not being singled out, said Smith. Southwest canceled contracts in Utah and in Texas, its home state.

There is no other competition between Reno and Las Vegas, he said. America West flies the route twice a day but its times do not accommodate state workers. He said other carriers have been asked to compete but "they are not interested."

Workshops were held Monday in Carson City and Wednesday in Las Vegas to brief state officials on the changes. About 150 workers showed up in Carson City and 60 in Las Vegas.