Southwest Airlines To Begin Flights To Newark Liberty In March

   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; [e-mail]