Airline Industry : Southwest Airlines

1603 Words Jan 23rd, 2016 7 Pages
The Airline industry has been around for decades, but in the long run it is still a pretty new type of industry. Therefore, there are still growing pains that need to be worked out. There are many small companies, but the major Southwest competitors are Delta/Northwest, Continental/United, JetBlue, and Allegiant.
Southwest continues to have to fight for consumers against these airlines. There are a few strategies being implemented by competitors that Southwest Airlines needs to be concerned about. One major recent strategy is that large companies are merging to create even large conglomerates. These mergers have given those companies some extra advantage when it comes to certain regional markets. They don’t have a monopoly but their hold on consumers in an area rises tremendously. Also, it allows them to control the fare prices in regions where they are the majority. Southwest Airlines could lose consumers to some of these mega companies because they may offer more flight times on certain routes. Consumers may be willing to pay more if times work better for them. However, these mergers could be detrimental because consumers like to have options and the prices they offer may be too high.
The strategies being offered by smaller companies are much different than the merger companies. The small companies are implementing low fare price strategies. These companies are directly competing with Southwest Airlines’ low price strategy. Southwest could lose consumers to other similar…
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