Pioneer in the Skies: The Case of Southwest Airlines

Kai-Ingo Voigt, Oana Buliga and Kathrin Michl
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Kai-Ingo Voigt: Friedrich-Alexander University Erlangen-Nürnberg
Oana Buliga: Friedrich-Alexander University Erlangen-Nürnberg
Kathrin Michl: Friedrich-Alexander University Erlangen-Nürnberg

Chapter 14 in Business Model Pioneers, 2017, pp 171-184 from Springer

Abstract: Abstract Southwest Airlines is a somewhat different example of a business model pioneer—and indeed, one may ask if the company is a pioneer at all: neither was Southwest the first to offer intrastate flights on its home market, Texas, nor was it the first to experiment with low-cost flights. But while the other companies were merely experimenting, Southwest developed a business model, which proved its sustainability over the course of more than four decades. By starting operations in 1971, Southwest faced from the very beginning harsh competition from incumbent airlines. This inspired the young company to create its very own business model—and unlike its main competitors at the time, the airline remains profitable until today. Winning this race made Southwest a prime example of a pioneer in the low-cost airline industry.

Keywords: Business Model; Airline Industry; American Airline; Train Travel; United Airline (search for similar items in EconPapers)
Date: 2017
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DOI: 10.1007/978-3-319-38845-8_14

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