What would happen if a start-up airline offered lower rates? ... The case refers to this occurrence as the "Southwest Effect". ... The airline industry has an overall elastic flavor to it. ... The assets involved are highly specific to the airline industry. ... If I were the head of a large carrier (United Airlines), I would ask Congress to enact resolutions that would prohibit too many airlines into the industry. ...

• Word Count: 1371
• Approx Pages: 5
• Grade Level: Undergraduate

Effects of War Wars are very bad for airlines. In the year after the first Gulf War, Eastern Airlines, Pan Am and Midway Airlines closed their doors forever. ... Bethune, the chief executive of Continental Airlines. ... Southwest, for instance, has an extensive hedging operation in place to lock in prices now on fuel to avoid higher prices later. ... Today, the airlines are already at war. ...

• Word Count: 1544
• Approx Pages: 6
• Has Bibliography

Effects of War Wars are very bad for airlines. In the year after the first Gulf War, Eastern Airlines, Pan Am and Midway Airlines closed their doors forever. ... Bethune, the chief executive of Continental Airlines. ... Southwest, for instance, has an extensive hedging operation in place to lock in prices now on fuel to avoid higher prices later. ... Today, the airlines are already at war. ...

• Word Count: 1647
• Approx Pages: 7
• Has Bibliography