Southwest Airlines welcomes industry mergers

WASHINGTON (Reuters) - Southwest Airlines Co. (LUV.N: Quote, Profile, Research, Stock Buzz), the leading U.S. discount carrier, would benefit from a merger between US Airways Group Inc. (LCC.N: Quote, Profile, Research, Stock Buzz) and Delta Air Lines Inc. DALRQ.PK, Southwest's chief financial officer said on Wednesday.

"Further consolidation would be good for us," Laura Wright told the Reuters Aerospace and Defense Summit in Washington, D.C.

US Airways has said it plans to reduce capacity by 10 percent if it succeeds in acquiring Delta. That would open up opportunities for Southwest to expand, she said.

Dallas-based Southwest is also keen to pick up assets that might be shed as a result of the merger. Southwest Chairman Herb Kelleher has spoken with both US Airways and Delta to express the company's interest, Wright said.

"We will be tactical" in bidding for assets, she said. Southwest would be interested in growing its presence in Philadelphia, buying the shuttle between New York, Boston, and Washington, and picking up slots at New York's LaGuardia Airport if it could get a large number, she said.

The additional assets would provide new growth opportunities for Southwest. The company is not planning to expand to any new cities next year, but will focus instead on expanding in its existing network, Wright said.

But beyond picking up spun-off gates, Southwest is not becoming part of the industry merger frenzy because of the complexity of integrating the assets and cultures of two different airlines, she said.

Wright said US Airways' cash and stock offer for Delta, currently valued at about $8.6 billion, appeared to be a "pretty strong bid."