Southwest Enters the Fray for LAX-to-Oakland Fliers

Competition in California’s heavily traveled air corridor intensified Monday as no-frills Southwest Airlines announced plans to fly to the Bay Area from Los Angeles International Airport, giving the discount carrier a long-sought route from the region’s busiest airport.

Southwest said that starting April 15, it will fly 10 round trips daily between Los Angeles and Oakland. In addition, Southwest said it was lowering its unrestricted, one-way coach fares in California to $59 from $64. United, the major carrier flying from LAX to the Bay Area, charges a $220 unrestricted, one-way fare between Oakland and Los Angeles.

A United spokeswoman said the Chicago-based air carrier will offer $59 fares for a limited number of seats on each flight.

Dallas-based Southwest now serves Oakland from Burbank, Ontario and San Diego. Southwest has long eyed Los Angeles International for its Bay Area service, but departure gates did not become available until recently as a result of USAir’s withdrawal from the LAX-Oakland market.

Southwest’s move into LAX is the latest in 11 months of tumultuous developments in the Bay-to-Basin corridor. Earlier this year, a five-way slugfest between USAir, American, United, Delta and Southwest produced super-cheap $20 one-way fares.

Huge losses forced USAir and American to cut back, leaving much of the market outside American’s San Jose hub to United.

According to sources, American is leasing three 737-300s to Southwest under 10- to 12-year leases to help it take on United--American’s archrival. Southwest said aircraft needed for the LAX-Oakland service are leased from “a major airline.”

Don Valentine, Southwest marketing vice president, said Southwest won’t steal many passengers from United because of “psychological differences” between the airlines’ customers. He said Southwest fliers are “gregarious, on-the-go, laid-back, work-hard, play-hard types,” while “serious-minded” United fliers thrive on paperwork.

United, according to travel industry executives, caters to business fliers with free meals and a strong frequent-flier program, while Southwest’s cheap fares appeal to vacationers.

Valentine disputed suggestions that Southwest’s LAX service would cannibalize Southwest’s Burbank-Oakland service. Valentine said he doubted that many travelers would drive past Burbank to LAX.