Why Southwest Air Is Bulking Up

摘要

Throughout its history, Southwest Airlines prospered from organic growth, betting that its competitive labor costs, low fares, and unique corporate culture comprised the best arsenal against rivals. Yet with the U.S. air travel market stagnant and larger airlines consolidating into more dominant competitors, Southwest has been forced to rethink its traditional business model in recent years. The latest change came on Sept. 27, when the Dallas-based airline agreed to pay $1.4 billion to buy AirTran Airways, a unit of AirTran Holdings. The acquisition, only the third in Southwest's history, would give the discounter its first service in Atlanta, a Delta Air Lines fortress for decades, and more flights from New York and Washington D.C. "Southwest is saying it is no longer the airline of Ma and Pa-we are going to become the airline of the business person," says Alan Bender, a professor at Embry-Riddle Aeronautical University.