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Southwest Airlines' strategic expansion into Chicago O'Hare explained

Southwest Airlines' strategic expansion into Chicago O'Hare explained
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Robert E Jordan CEO of Southwest Airlines | Official Website

Southwest Airlines, founded in 1967, expanded its Chicago operations by establishing a presence at O'Hare International Airport in December 2021. Historically, Southwest has dominated at Midway International Airport, operating over 80 destinations with a market share of approximately 91% based on 2024 figures. Midway's physical constraints, including runway capacity and limited gate access, prompted Southwest to look for additional options.

In the spring of 2021, Southwest initiated services at O'Hare, taking advantage of reduced traffic due to the pandemic. Dave Harvey, the operational vice president at Southwest, stated: "Making it easier to fly Southwest for business or leisure, we’re excited to bring more options to Chicago travelers through a preferred airport for many of our existing customers in northern Chicagoland."

The airline expanded further at O'Hare when it acquired 12 slot pairs divested by American Airlines in a US Department of Transportation auction. Presently, Southwest operates 14 daily departures to eight U.S. destinations from O'Hare, with a seasonal service to Cancun. This move allows the airline to capture a new customer base from Chicago's northern suburbs.

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Despite Southwest's modest operations at O'Hare compared to United Airlines' and American Airlines' numerous daily flights, the airline strategically competes on several high-demand routes. This competition is expected to benefit Chicago travelers by influencing ticket prices.

Southwest's decision to serve both Midway and O'Hare reflects a strategic attempt to maximize market share and accommodate future growth. This includes leveraging O'Hare's larger footprint and extended operations hours, allowing the airline more scheduling flexibility. Furthermore, operating at O'Hare offers Southwest resilience during adverse weather conditions and access to better customs facilities for potential future international expansions.

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