Southwest Airlines
Brief Introduction
Airline industry can be divided into two sub-sectors. The first is traditional airlines such as American Airlines, United Airlines and Delta Airlines. These carriers have global air networks and serve both long-distance and medium-distance routes. The second is low-cost airlines such as Southwest Airlines and JetBlue, which mainly operate medium or short distance routes and only serve domestic clients. In today¡¯s competitive environment with high oil prices, most traditional airlines suffer huge losses while lost-cost carriers still record sizable profits due to their unique strategy and flexible operations. Southwest Airlines epitomizes the business model of low-cost airlines.
Low Cost and High Efficiency
The most important asset of Southwest Airlines is its low operating cost, which is currently the lowest in the industry. Over the past thirty years air fare price has been keeping going down and therefore a low cost structure places Southwest Airlines......
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