The Archetypical Low-Cost Air Carrier: Southwest Airlines

Abstract Southwest Airlines is the seventh largest domestic airline in the United States and is often referred to as a low-cost airline. Southwest Airlines is the only major airline to provide short-range point-to-point services within the United States. In fact, it is the first airline of its kind in history; it has become a typical low-cost airline. This idea has already proved this and other emerging airlines are building their own strategy based on Southwest Airlines.

Since the turn of the century, the need for full service providers to manage costs is increasing due to the widespread entry of new generation low-cost carriers. Many of these low-cost enterprises follow Southwest Airlines in all respects, as well as Southwest Airlines, can achieve a steady profit at all stages of the business cycle. Operating expenses of major airlines in the United States are mainly for aircraft including aircraft fuel, aircraft maintenance, depreciation and flight crews 44%, flight costs 29% (traffic 11%, passenger 11%, aircraft 7%) Operating expenses, reservation sale of 14% The administrative expenses are 13% (management fee is 6%, advertisement expenses is 2%). The major US Boeing 757-200 is 1,252 miles per day (21.3 hours per day) and is $ 2,550 per hour with ownership of $ 923, maintenance of $ 590, fuel of $ 548 and flight crew of $ 489. 186 seats ($ 13.34)

At the end of the century, a new type of low cost airlines emerged, offering cheaper products at a lower price. Low-cost airlines such as Southwest Airlines, JetBlue, AirTran, Skybus and others cast a serious challenge to so-called "traditional airlines", as is the case with low-cost airlines in many other countries I am starting. Their commercial viability is a serious competitive threat to traditional operators. However, among them, ATA and Skybus stopped working. Since 1978, American Airlines has been increasingly restructured, newly established, divided by internal leadership management companies. Several of these relatively famous holding companies and parent companies are UAL and AMR, some of which are worldwide recognized.

In the 1970s, a low cost airline model was launched by Southwest Airlines, the leading airline in the United States. Later in the 1990s this business model was introduced in Europe and was introduced in 2003 by Air Deccan in India. Traditional network airlines in North America, Europe and Asia have a negative impact, capital-rich start-ups have entered the low-cost airline market and existing low-cost airlines have grown rapidly. These airlines utilize undeveloped and powerful market opportunities to stimulate demand for passengers at low prices and sensitive, and to gain market share from competitors with low agility. Bear in traditional labor and infrastructure