Southwest, Continental Airlines Enter Into Slot Lease At Newark Liberty International Airport (KEWR)

Southwest Airlines and Continental Airlines confirmed late last week that they have entered into a lease agreement providing Southwest Airlines access to 36 Newark Liberty International Airport (EWR) slots which are currently held by Continental.

The lease deal, contingent upon the closing of the Continental and United airlines' merger by November 30, 2010, and certain governmental approvals, would give Southwest Airlines the right to operate up to 18 daily roundtrip flights at Newark, New Jersey, with some flights beginning in March 2011 and a full schedule in place by June 2011. The slots are spread throughout the day and would allow Southwest the ability to easily integrate Newark service into its national route network.

"We ... plan to enable that service starting next March through continued flight schedule optimization using our existing fleet," said Bob Jordan,  Southwest Airlines Executive Vice President of Strategy and Planning. "We've seen tremendous demand for Southwest Airlines in the New York City/Newark area in the past year. Adding Newark provides an excellent complement to our LaGuardia and Long Island service, giving ... one more option for travel to and from the greater New York City/New Jersey area."

Southwest is working with the Federal Aviation Administration, the Port Authority of New York and New Jersey, and Continental and United Airlines to finalize arrangements for commencing its Newark service in March 2011, including the approval of the acquisition of the necessary airport gates and facilities. Details on what cities Southwest will serve from Newark and on what dates that service will begin have not yet been determined.

"The divestiture of slots at Newark by the combined Continental/United will ensure competition is enhanced, and we appreciate the Department of Justice's role in finding a fair solution," Jordan said.

FMI: www.southwest.com, www.continental.com