Sowthwest Airlines

Introduction
The airline industry is a highly competitive business and its position in the business life cycle can be characterized as early maturity. Market size is given by revenues of $98,1 billion in 2000, and the average annual growth rate between 1995 and 2000 equals 6,6%.

Southwest Airlines, Inc. (SWA) is a highly competitive and successful market player: it focuses on short-haul flights with an on average relatively short distance. It does away with meals, in-flight films, designated seats, multiple seating classes from first to economy, membership in an airline reservation system, central airports, and a hub-and-spoke route system - all previously assumed to be indispensable to success. In their place SWA created the concept of frequent point-to-point flights, with fares often 60% below competitors', plastic reusable boarding passes, airports in small cities or smaller, less-congested airports in larger cities and 15-minute gate turnarounds, (against 35 minutes for the av...