Southwest about to alter its course
The low-cost carrier may grow by forming alliances with airlines flying overseas routes.
By Peter Pae, Los Angeles Times Staff Writer
September 19, 2007
Since it took off more than three decades ago, Southwest Airlines Inc. has grown rapidly by bucking the industry, resisting assigned seating, in-flight meals and the temptation to expand overseas.
Now, facing rising costs, more competition from copycats and the prospect of slower domestic growth, the nation's largest low-cost carrier is planning to make its boldest move ever: Next year, Southwest will begin providing connecting domestic flights to passengers arriving in the U.S. on international airlines.
"We have to find a way to get our revenues up, and there are two basic ways to do it," Chief Executive Gary Kelly said in a recent interview, "higher fares or get more passengers per flight."
Barring higher fares, Southwest will aim for the latter. Eventually, the airline might even fly its own international routes, perhaps first to Mexico and Canada before taking on Asia and Europe.
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