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Pioneer in the Skies: The Case of Southwest Airlines

In: Business Model Pioneers

Author

Listed:
  • Kai-Ingo Voigt

    (Friedrich-Alexander University Erlangen-Nürnberg)

  • Oana Buliga

    (Friedrich-Alexander University Erlangen-Nürnberg)

  • Kathrin Michl

    (Friedrich-Alexander University Erlangen-Nürnberg)

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.

Suggested Citation

  • Kai-Ingo Voigt & Oana Buliga & Kathrin Michl, 2017. "Pioneer in the Skies: The Case of Southwest Airlines," Management for Professionals, in: Business Model Pioneers, chapter 14, pages 171-184, Springer.
    • Handle: RePEc:spr:mgmchp:978-3-319-38845-8_14
    DOI: 10.1007/978-3-319-38845-8_14
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