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Thus even though it is entering the Philadelphia market with only 14 flights per day, US Airways should expect it to expand its number of flights quickly if it is successful in getting a start in the market. Southwest is not pursuing a current profit maximization strategy, even though it has been highly profitable. Low prices do not necessarily result in lower profits.
In order to deliver low prices, Southwest must keep the cost of the other variables low. Thus, it offers a no-frills, point-to-point, air transportation service (product) at out-of-the-way airports (places) where costs are low, with limited and low-cost promotion...
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