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Title: Southwest Airlines

Essay Details

Subject: Business
Author: James M
Date: April 11, 2015
Level: University
Grade: A
Length: 23 / 6725
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

With this came the change of focus for major airlines to non-stop, cross-country routes in densely populated cities, which, in a regulated environment, would be profitable. This resulted in the obvious outcome of increased competition, thus lowering the average industry prices for non-stop cross country routes which were profitable...

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This caused operating costs to increase, narrowing the profit margins. During the mid 80's, acquisition led to eight airlines capturing a disproportionate share of domestic traffic. Due to a recession and increasing fuel prices in the 90's, bankruptcy and collapse were common to many carriers. As a direct result, new airlines were formed, and now position themselves as low fare, no frill airlines...

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