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Effect Of Low-cost Airlines On Communities
The effect, often referred to as "the Southwest effect", is the increase in airline travel originating from a community after service to and from that community is inaugurated by Southwest Airlines, or any similar airline that improves service or lowers cost. Original description The U.S. Department of Transportation coined the term in 1993, to describe the considerable boost in air travel that invariably resulted from Southwest's entry into new markets, or by another airline's similar activity. The Southwest Effect was said to have three elements: * The new-entrant airline ''increased supply'' and ''offered lower prices''. Southwest offered dramatically lower air fares than established airlines that usually enjoyed a near-monopoly in the communities. * Incumbent ''airlines lowered their own fares''. Established airlines competing with Southwest Airlines sought to avoid Southwest's entering their markets, and feared losing passengers and having to offer lower prices. Upon Southwes ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Southwest Airlines
Southwest Airlines Co., or simply Southwest, is a Major airlines of the United States, major airline in the United States that formerly operated on a low-cost carrier model. It is headquartered in the Love Field, Dallas, Love Field neighborhood of Dallas, Texas. It is the List of largest airlines in North America, fourth-largest airline in North America when measured by passengers carried, as of 2023. With its all-Boeing 737 fleet, Southwest serves over 100 destinations in 42 states, Washington, D.C., Puerto Rico, and ten other countries near the southern United States in the Gulf of Mexico and Caribbean Sea regions: Aruba, the Bahamas, Belize, the Cayman Islands, Costa Rica, Cuba, the Dominican Republic, Mexico, Jamaica, and Turks and Caicos Islands, Turks and Caicos. The airline was established on March 9, 1967, by Herb Kelleher and Rollin King as Air Southwest Co. and adopted its current name, Southwest Airlines Co., in 1971, when it began operating as an intrastate airline w ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Airline
An airline is a company that provides civil aviation, air transport services for traveling passengers or freight (cargo). Airlines use aircraft to supply these services and may form partnerships or Airline alliance, alliances with other airlines for codeshare agreements, in which they both offer and operate the same flight. Generally, airline companies are recognized with an Air operator's certificate, air operating certificate or license issued by a governmental aviation body. Airlines may be scheduled or Air charter, charter operators. The List of airlines by foundation date, first airline was the German airship company DELAG, founded on November 16, 1909. The four oldest non-airship airlines that still exist are the Netherlands' KLM (1919), Colombia's Avianca (1919), Australia's Qantas (1920) and the Russian Aeroflot (1923). Airline ownership has seen a shift from mostly personal ownership until the 1930s to government-ownership of major airlines from the 1940s to 1980s and b ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Low-cost Carrier
A low-cost carrier (LCC) or low-cost airline, also called a budget, or discount carrier or airline, is an airline that is operated with an emphasis on minimizing operating costs. It sacrifices certain traditional airline luxuries for cheaper fares. To make up for revenue lost in decreased ticket prices, the airline may charge extra fees, such as for carry-on baggage. The term originated within the airline industry referring to airlines with a lower operating cost structure than their competitors. The term is often applied to any carrier with low ticket prices and limited services regardless of their operating models. Low-cost carriers should not be confused with regional airlines that operate short-haul flights without service, or with full-service airlines offering some reduced fares. Some airlines advertise themselves as low-cost while maintaining products usually associated with traditional mainline carriers’ services. These products include preferred or assigned seati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Supply (economics)
In economics, supply is the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or to an individual. Supply can be in produced goods, labour time, raw materials, or any other scarce or valuable object. Supply is often plotted graphically as a supply curve, with the price per unit on the vertical axis and quantity supplied as a function of price on the horizontal axis. This reversal of the usual position of the dependent variable and the independent variable is an unfortunate but standard convention. The supply curve can be either for an individual seller or for the market as a whole, adding up the quantity supplied by all sellers. The quantity supplied is for a particular time period (e.g., the tons of steel a firm would supply in a year), but the units and time are often omitted in theoretical presentations. In the goods market, supply is the amount of a product ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monopoly
A monopoly (from Greek language, Greek and ) is a market in which one person or company is the only supplier of a particular good or service. A monopoly is characterized by a lack of economic Competition (economics), competition to produce a particular thing, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit. The verb ''monopolise'' or ''monopolize'' refers to the ''process'' by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge Monopoly price, overly high prices, which is associated with unfair price raises. Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry (or market). A monopoly may als ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Competition (companies)
In economics, competition is a scenario where different economic firmsThis article follows the general economic convention of referring to all actors as firms; examples in include individuals and brands or divisions within the same (legal) firm. are in contention to obtain goods that are limited by varying the elements of the marketing mix: price, product, promotion and place. In classical economic thought, competition causes commercial firms to develop new products, services and technologies, which would give consumers greater selection and better products. The greater the selection of a good is in the market, the lower prices for the products typically are, compared to what the price would be if there was no competition (monopoly) or little competition (oligopoly). The level of competition that exists within the market is dependent on a variety of factors both on the firm/ seller side; the number of firms, barriers to entry, information, and availability/ accessibility of re ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market (economics)
In economics, a market is a composition of systems, institutions, procedures, social relations or infrastructures whereby parties engage in Exchange (economics), exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labour power) to buyers in exchange for money. It can be said that a market is the process by which the value of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society. Markets allow any tradeable item to be evaluated and priced. A market emergence, emerges more or less spontaneous order, spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights (cf. ownership) of services and goods. Markets generally supplant Gift economy, gift economies and are often held in place through rules and customs, such as a booth fee, competitive pricing, and source of goods for ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Profitability
In economics, profit is the difference between revenue that an economic entity has received from its outputs and total costs of its inputs, also known as surplus value. It is equal to total revenue minus total cost, including both Explicit cost, explicit and implicit cost, implicit costs. It is different from accounting profit, which only relates to the explicit costs that appear on a firm's financial statements. An accountant measures the firm's accounting profit as the firm's total revenue minus only the firm's explicit costs. An Economists, economist includes all costs, both explicit and implicit costs, when analyzing a firm. Therefore, economic profit is smaller than accounting profit. ''Normal profit'' is often viewed in conjunction with economic profit. Normal profits in business refer to a situation where a company generates revenue that is equal to the total costs incurred in its operation, thus allowing it to remain operational in a competitive industry. It is the mi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Demand
In economics, demand is the quantity of a goods, good that consumers are willing and able to purchase at various prices during a given time. In economics "demand" for a commodity is not the same thing as "desire" for it. It refers to both the desire to purchase and the ability to pay for a commodity. Demand is always expressed in relation to a particular price and a particular time period since demand is a flow concept. Flow is any variable which is expressed per unit of time. Demand thus does not refer to a single isolated purchase, but a continuous flow of purchases. Factors influencing demand The factors that influence the decisions of household (individual consumers) to purchase a commodity are known as the determinants of demand. Some important determinants of demand are: The price of the commodity: Most important determinant of the demand for a commodity is the price of the commodity itself. Normally there is an inverse relationship between the price of the commodity and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
JetBlue
JetBlue Airways Corporation, stylized as jetBlue, is an American major airline headquartered in Long Island City, in Queens, New York City. Primarily a point-to-point carrier, JetBlue's network features six focus cities including its main hub at New York's John F. Kennedy International Airport, with destinations across the Americas and Europe. Although not a member of any global airline alliances, JetBlue has codeshare agreements with airlines from Oneworld, SkyTeam, and Star Alliance. History 1998–2000: Founding JetBlue was incorporated in Delaware in August 1998 with its headquarters in Forest Hills, Queens. David Neeleman founded the company in August 1999 under the name "NewAir". JetBlue started by following Southwest's approach of offering low-cost travel, but sought to distinguish itself by its amenities, such as in-flight entertainment, TV at every seat, and Sirius XM satellite radio. JetBlue sought to primarily use the Airbus A320 family to ease maintenance, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Allegiant Air
Allegiant Air is an American ultra low-cost carrier, ultra-low cost airline headquartered in Las Vegas, Nevada. The airline focuses on serving leisure traffic from small and medium-sized cities which it considers to be underserved, using an ultra low-cost business model with minimal inclusions in fares and a greater number of add-on fees. Allegiant was founded in 1997 and is wholly owned by Allegiant Travel Company, a Public company, publicly traded company with 5,600 employees and over US$2.6 billion market capitalization . The airline is the List of largest airlines in North America, fourteenth-largest in North America. History Establishment Allegiant Air was founded in January 1997 by Mitch Allee (owner, CEO), Jim Patterson (president), and Capt. Dave Beadle (chief pilot) under the name WestJet Express. After losing a trademark dispute with Westjet Air Center of Rapid City, South Dakota, Rapid City, South Dakota, and recognizing the name's similarity to WestJet, WestJet Airl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Spirit Airlines
Spirit Airlines, Inc. is an American ultra-low cost airline headquartered in Dania Beach, Florida, in the Miami metropolitan area. Spirit operates scheduled flights throughout the United States, the Caribbean, and Latin America. Spirit was the List of largest airlines in North America, seventh largest passenger carrier in North America as well as the largest ultra-low-cost carrier in North America. Spirit filed for Chapter 11, Title 11, United States Code, Chapter 11 bankruptcy in November 2024 and emerged after financial restructuring in March 2025. History Foundation and early years The company started as Clippert Trucking Company in 1964. In 1974, the company changed its name to Ground Air Transfer, Inc. In 1983, the airline service was founded in Macomb County, Michigan, by Ned Homfeld as Charter One Airlines, a Detroit-based charter tour operator providing travel packages to entertainment destinations such as Atlantic City, Las Vegas, and the Bahamas. 1990s In ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
