Hours after announcing it would acquire Morris Air, Southwest Airlines officials met with Morris employees and the press at a downtown hotel to assure them they are committed to the Salt Lake market.
"We are committed to Salt Lake, make no mistake about that," said an ebullient Ed Stewart, public relations manager for Southwest Airlines.Monday morning, the airlines announced jointly that Southwest would acquire Morris Air. Southwest's stock rose $2 per share to $36 Monday on the New York Stock Exchange, meaning the deal is worth nearly $129 million.
Stewart said Morris Air is a perfect companion for Southwest, which revolutionized the discount airline concept. "We have our Southwest Spirit, and they have their Morris Magic (company slogans that reflect employees' attitude toward their work and their commitment to customer service). It was like looking in a mirror at us a few years ago," he said.
The sale is good news for the flying public, particularly Morris customers who are accustomed to low fares, Stewart said. "When we go into a market, fares typically go down 50 percent to 75 percent, sometimes more." In other markets served by Southwest, competitors have matched its low fares.
Morris Air President David Neeleman said transition from Morris Air to Southwest service will be a gradual process, taking as long as three years to complete. The transaction is subject to regulatory approval by the U.S. Department of Justice, which should occur by the end of the year, Neele-man said.
Within the next few weeks, the Dallas-based airline will interview all permanent, full-time Morris Air employees to ascertain whether they will have jobs with Southwest.
Neeleman said Southwest officials have assured him and Morris Air founder June Morris that most of Morris Air's permanent employees will keep their jobs.
Stewart said more than 80 percent of Southwest Airlines employees are union members, a significant change from the Morris operation, which has no union workers.
Southwest has not yet determined if it will retain Morris in-home reservation agents."They'll have jobs for at least the near future. It's good for our employees. I know I'll try my darndest to explain the virtues of that," Neele-man said.
During the first phase of the transition, Morris will continue to operate as usual. Holiday service will be offered as scheduled, the airline will offer competitive fares and it will continue to provide service to 22 cities.
Southwest is examining the cities Morris Air currently serves and will decide if it provides the same service. Currently Southwest serves 37 cities. (See accompanying graphic.)
Neeleman said Morris Air only recently provided proprietary information to Southwest and anticipates airline officials will decide which cities to retain within a few months.
"One thing we've learned from Southwest, if they're going to do something, they're going to do it right. This will be a very gradual process," Neeleman said.
Stewart said Southwest will begin repainting the white and blue Morris fleet of Boeing 737s with its crimson and gold motif within a few months.
At times, Stewart's exchange with media was reminiscent of a high school pep rally. The sale of Morris Air to Southwest will benefit Southwest, the Salt Lake area, Morris Air employees and the flying public, he said.
"We're ready to let people know who is the low-fare leader. No one does low fares better," Stewart said.
Southwest competes with Delta Air Lines, which operates a major hub in Salt Lake City. Despite the enthusiasm of Southwest employees (including one who at the Monday press conference said "Who is Delta?"), Stewart emphasized Southwest has a good relationship with Delta.
"We've never had any real wars with that particular carrier," Stewart said, noting the carriers have different missions, Southwest's being short-haul, high-frequency service.
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ADDITIONAL INFORMATION
`Business' decision was also personal
The decision to sell Morris Air to Southwest Airlines Co. was both a personal and business decision for founder and chief executive officer June Morris.
Morris, recently diagnosed with an aggressive form of breast cancer, is undergoing treatment out of state. But Morris Air president David Neeleman said her prognosis is good.
Her physician believes the cancer was caught early and she has a "better than 90 percent chance of recovery and cure. It's like having Larry Bird at the foul line. We're thrilled," Neeleman said.
Morris, 62, is the first woman CEO of an airline nationwide.
"She was thinking it was a great end to a wonderful career," Neeleman said of the sale. Morris and Neeleman are the major stockholders in Morris Air, which is privately held.