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Through mergers and global alliances, Delta Air Lines, which acquired Northwest in 2008, and the more recently merged United Airlines and Continental are now more formidable rivals. But with high fuel prices, growth has been harder to find, and analysts have questioned whether the airline can sustain its singular operating style.īattered in part by Southwest’s growth, traditional airlines have restructured their operations over the last decade often through painful bankruptcy proceedings and have narrowed the gap. Its success was built on a signature cocktail of low costs, low fares, frequent flights and a rapid expansion into new cities. Yet Southwest finds itself at a pivotal moment.
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When rival airlines were bleeding billions of dollars, Southwest was churning out consistent profits as a low-cost carrier even when fuel prices soared.Īnd in September, in its boldest corporate move since it started flying outside of Texas, Southwest announced that it would buy AirTran Airways for $1.4 billion, increasing both its revenue and its capacity by nearly 25 percent in a single stroke. It operates 3,200 flights a day, owns a fleet of 544 planes and serves 69 domestic cities from Seattle to Fort Lauderdale, Fla., and from Lubbock, Tex., to Buffalo. Last year, it flew 86 million passengers, more than any other airline within the United States. Southwest doesn’t quite fly on auto-pilot, but as it prepares for its 40th birthday next year, it is flush with success. “This shows you how little we have to do to run the airline,” says Mr. Nearby, Mike Van de Ven, the chief operating officer, is rolling on the floor, posing for pictures, and greeting children and parents with a wide grin in his Buzz Lightyear costume.