Southwest Airlines is beginning service to Washington-Dulles Airport on October 5, 2006. Of the 12 daily flights, most will go to Chicago-Midway while the others go to Las Vegas, Orlando and Tampa Bay.
Dulles (IAD) is a major hub for United Airlines. When Independence Air started up, the small airline gave United a run for the money. United was forced to reduce fares to remain competitive. JetBlue also did the same to United when service first begain at IAD.
Unfortunately, Independence was unable to withstand competitive pressures and folded on January 5, 2006. JetBlue has not folded, but has seen revenues drop dramatically. And JetBlue's ticket prices have increased.
This has allowed United to raise rates again.
With Southwest's move to IAD, United may once again have to lower rates to become competitive.
I have been a United customer for decades. I only started flying Southwest a couple of years ago. Both airlines have their strengths and weaknesses. I'd like to see the efficiency and competitiveness of Southwest combined with the benefits United offers. That may never happen. But I do look forward to seeing more competitive rates flying out of IAD.
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