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In today??s competitive environment with high oil prices, most traditional airlines suffer huge losses while lost-cost carriers still record sizable profits due to their unique strategy and flexible operations. Southwest Airlines epitomizes the business model of low-cost airlines.
Low Cost and High Efficiency
The most important asset of Southwest Airlines is its low operating cost, which is currently the lowest in the industry. Over the past thirty years air fare price has been keeping going down and therefore a low cost structure places Southwest Airlines in a competitive advantage over its peers...
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