the SWA model
Why can SWA charge $299 for tickets, and other airlines cannot?
Well, we studied this in my airline economics class. It was referred to as the Southwest model. They essentially try to operate an airline with minimal operating costs, in order to maximize profits.
Some points include:
- not flying into major airports, where the fees are higher.
- operate a uniform fleet to achieve economies/savings in crew training, inventories, and maintenance.
- no frills... no big meals on flights, no first class, very friendly and pleasant crew, etc.
- no overseas flying
There are many other reasons which I just can't seem to think of at the top of my head. Now I am not a professional airline analyst, but our professor constantly stressed the advantage that SWA had over any other airline- its low costs. I'm sure their costs are a fraction of what Delta's, for instance, would be. Two completely different operating motifs.