DOW JONES NEWSWIRES
Southwest Airlines Co. (LUV) will begin service out of Newark
Liberty International Airport next March under an agreement to
lease take-off and landing slots from United Airlines and
Continental Airlines Inc. (CAL).
The first of the discount airline's 18 daily round-trip flights
will start next March, a Southwest spokeswoman said. No details on
what cities Southwest will serve from Newark have been decided.
Continental, which plans to merge with United's parent, UAL
Corp. (UAUA), in a $3 billion stock-swap deal, said it agreed to
lease 18 pairs of take-off and landing slots at Newark Liberty to
address Department of Justice concerns related to the proposed
merger.
The leasing deal, which would begin in March and be in place by
June, depends on the closing of the Continental-United merger,
expected by Nov. 30, and requires government approvals.
Continental and United currently operate 442 daily round-trip
flights into and out of Newark Liberty. The leasing arrangement is
expected to have minimal impact on the combined carrier's route
network.
Southwest, the largest carrier of domestic U.S. passengers, has
been expanding to more airports in recent years and now flies into
LaGuardia Airport in New York.
Southwest's shares closed at $11.13 and were inactive after
hours. Continental's and UAL's share also were unchanged after
hours at $21.80 and $20.45, respectively.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com