Southwest Airlines I. Current Situation Following the Deregulation in 1978, a competitive price war ensued among the airline covering as a direct result of the new granting immunity for airlines to set their own fares as well as score entry and exits. This gave rise to the operating structure of the airlines as it exists today, consisting of the point-to-point compendium and the hub and spoke system. 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 obvi ous outcome of increased competition, thus grueling the average industry prices for non-stop cross country routes which were profitable. This caused operating be to increase, narrowing the profit margins. During the mid 80s, acquisition bow to eight airlines capturing a disproportionate share of domestic traffic. referable to a recession and increasing fuel prices in the 90s, bankruptcy and coll...If you want to get a full essay, seethe it on our website:
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