The Impact of Southwest Airlines on Greenville SC economy and Real Estate
When Southwest Airlines announced on May 11th 2010 of their intent to start service at the Greenville/Spartanburg International Airport, the news excited a lot of people in the Upstate South Carolina, including me. I did not really think
much about how this move will affect Greenville’s economy until I read “Wooing The Giant”, an article written by Jordana Megonigal in the third quarter 2010 issue of Business Black Box magazine.
My client Lisa Worsham with Showcase Marketing called me a couple of months ago and asked if I could help Inside Black Box with their next issue by taking some pictures for their cover story. I was willing to do it. After all Lisa & her husband Jeff are one of my favorite clients, but I became really excited about the request when I learned that the cover story was about Southwest Airlines coming to Greenville.
As I read this well researched and well written article, I started realizing what this move can mean to Greenville’s economy and the real estate market here.
As Jordana wrote, Southwest is currently the largest domestic passenger carrier airline in the US. They operate one of the youngest fleets of over 500 larger but thinner planes, which allows for less gas consumption but carry as consistent load as other larger carriers. Unlike other airlines that operate on a hub system, Southwest operates on a city-to-city system, which streamlines their service and cost. With each new airport that Southwest has moved into in the past, they also brought lower air fares to that city. These lower fares also spread to other airlines as they fought be more competitive.
Sam Konduros of AK Strategies and Chairman of Upstate SC Air Service Partnership Committee said in the article that “This area is on the cusp of attracting more and more sophisticated companies and investments, but our air service has been a real impediment. It’s just something we’ve had to work around”. He continued to say that “We have been told too many times that we have fallen off many corporate radar screens because of our expensive and limited air service”. After reading that, it is no surprise why Upstate leaders in the public and private sectors persevered through all obstacles and worked on trying to bring Southwest to Greenville for almost a decade.
Once Southwest enters the Greenville market on March 13th 2011 according to an announcement made by Southwest Airlines on October 20th 2010, we would not have to drive to Charlotte or Atlanta airports just to get lower air fares. Hopefully new companies and the ones that passed up the Upstate area due to limited air service will reconsider this area. As new companies expand and or relocate to the Greenville area, this will also make a huge impact on Greenville SC Real Estate market, job market and the economy as these companies relocate employees and hire new ones locally. Southwest alone, even at the most conservative numbers, is estimated to have an economic impact of at least $69 million.
Greenville South Carolina was named the #1 North American micro cities for 2009-2010 by fDi magazine. fDi magazine also gave Greenville two top 5 rankings, Most business friendly and Best human resources. Greenville was also Forbes.com Top 5 Places to weather the economic downturn. Greenville is one CNN money and fortune magazine top 5 places to retire, and is still on RelocateAmerica’s Top places to live. And the list goes on. With the addition of Southwest, it is clear to see that the best is yet to come.
To read Jordana Megonigal’s “Wooing The Giant” article or to get a copy of Business Black Box magazine, visit www.InsideBlackBox.com
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