Deregulation and Competition: Lessons from the Airline Industry

Books

Jagdish N. Sheth, Fred C. Allvine, Can Uslay & Ashutosh Dixit

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  • Back Matter
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    List of Tables

    • 3.1 Airline Ticket Information 70
    • 3.2 Sixteen Largest Hub Markets Dominated by a Single Airline in 1999 76
    • 3.3 Fare Differentials on Routes at Hub Markets without Low-fare Competitor vs. Hub Markets with a Low-fare Competitor (1999) 77
    • 5.1 Airline Passengers Flown between Los Angeles and San Francisco and Market Shares of the Respective Airlines 103
    • 6.1 Change in Air Fares and Passengers on 10 Major Routes from Philadelphia Serviced by Southwest 148

    List of Figures

    • 5.1 Soaring Number of Passengers Fly Pacific Southwest Airlines 112
    • 5.2 Rapidly Increasing Profits of Pacific Southwest Airlines 112
    • 6.1 States Served by Southwest Airlines, 1984 and 1994 138
    • 6.2 States Served by Southwest Airlines, 2005 139
    • 6.3 Profitability of Southwest Airlines 140
    • 7.1 Profitability of Frontier Airlines 170
    • 9.1 JetBlue Quarterly Net Income, 2000–2005 216
    • 10.1 Ryanair Six-year Ancillary Revenue Growth 236
    • 10.2 Ryanair Six-year Net Income Growth 238
    • 12.1 Historical Net Income of the Top 5 Discount Airlines 266
    • 12.2 Historical Net Income of the Top 6 Legacy Carriers 267
    • 12.3 Change in Legacy Airline Costs, October 1, 2001 to December 31, 2003 275
    • 12.4 Change in Low-cost Airline Costs, October 1, 2001 to December 31, 2003 276
    • 12.5 Unit Cost Differential, 1998–2003 277

    Acknowledgements

    We would like to express our gratitude and thanks to Navijit Gill, who rewrote parts of the book and to Mark Hutcheson who provided end-to-end editorial and administrative support. Mark Hutcheson also coordinated day-to-day communication and routine operational decisions with the publisher. Finally, we want to thank Dr Sugata Ghosh, Vice President, Commissioning, for his confidence in the book and for making it available to the professional market.

    Prologue: The Battle for Open Skies

    Concept arbitrage has allowed enterprising industrial moguls in emerging economies to build companies in industries as diverse as retail and telecom. The story of deregulation and privatization in the most advanced capitalist nation provides fertile ground for predicting the evolution of industries. It's not a perfect science, but the business models that emerge are examples of what is possible.

    The story of airline deregulation and privatization is being played out in many emerging economies, including India and Malaysia, as discount carriers take on erstwhile protected carriers. The similarities and differences with the US experience give a clue as to how successful they will be. To that effect, this book looks at the history of deregulation in the US—the players, the strategies and the continuing battle for the open skies.

    The US airline industry was deregulated in 1978, based on the expectation that a large number of new discount airlines would enter the field and provide the public considerably lower airfares. In fact, over the first few years following deregulation, a number of new discount airlines did come into existence and provided the public considerably lower airfares. However, the major airlines developed a strategy to eliminate the discount airlines. Ten years after deregulation, all but one of the new airlines were shut down, and the one remaining airline was in bankruptcy.

    The major airlines—Delta, American, United, Northwest, Continental, and US Airways—took a number of steps to dominate the industry during the 1980s and early 1990s. One of the weapons they deployed was to control most of the gates at airports in large cities. The major airlines obtained exclusive leases for use of many of these gates for 20 years or longer. This was in spite of the fact that the Federal government originally provided the money to build major airports and their runways. To develop customer loyalty, the major carriers introduced costly frequent-flyer programs that provided an incentive for passengers to fly a particular airline. They also built luxury lounges where frequent business travelers could relax and have a drink. In addition, the major airlines paid premium fees to travel agents to book flights on their airlines. In summary, the major airlines created an expensive hub-and-spoke system and provided many costly amenities.

    Despite these steps, they still experienced a problem when start-up discount airlines started to fly routes to the major hub airports. Given that the discounters had much lower operating costs, they were able to charge considerably lower fares than the established airlines. In many retail fields there are high-cost operators as well as low-cost firms, and they tend to co-exist by meeting the needs of two different market segments. However, the major airlines developed a strategy to keep the discount airlines from successfully competing in their high-cost hub markets.

    The strategy was to respond aggressively when discount airlines started flying on some of the major airlines' high-price routes. The major airlines would temporarily lower their prices and meet the low fares of the discount airline. In the process, the major airlines were selling tickets far below their operating costs. When the small discount airlines were unable to gain enough volume to sustain their operation, they would withdraw from these routes. The major airlines would then increase ticket prices back to the original level or in many cases to a higher level than before. The major airlines were able to subsidize temporary losses on select routes with the profits from the vast majority of their routes, where they experienced no competition from discount airlines.

    The outlook for the discount airlines sharply improved from 1993 to 2000 (during the Clinton administration). A number of studies were conducted and hearings held regarding major airline dominance of large airports and the monopoly fares they charged. In 1998, the Department of Transportation (DOT) tried to introduce guidelines to stop predatory pricing, but this effort failed. The US Justice Department attempted to bring a predatory-pricing case against American Airlines, but the judge refused to hear the case. Nonetheless, the DOT was able to remove many of the barriers to entry faced by discount airlines in the large markets of the major airlines. As time wore on, the resourceful discount airlines began competing on three-fourths of the 1,000 busiest routes in the country. Many airline analysts believe that the discount carriers that offer good service and some amenities will continue to expand their market share. This is the reason the outlook for the six major airlines remains bleak and action needs to be taken to reduce the number and costs of the major airlines.

    Southwest Airlines is the oldest, biggest, and most profitable discount airline. Following airline deregulation in 1978, it systematically expanded its operation across much of the country by offering lower fares. It is also the largest airline in the United States in terms of domestic passengers boarded, and has been consistently profitable for more than 30 years. Southwest has held its costs down by offering basic airline service with few frills. There are additional savings due to its low cost, point-to-point method of operating that avoids the costs and delays of flying to many of the major airports.

    AirTran Airways (originally called ValuJet) came into existence in 1994 when it took over the gates of Eastern Airlines after Eastern withdrew from Atlanta airport. The small discounter began flying two airplanes to a few cities in Florida, and has steadily expanded its fleet of airplanes and service routes, mainly in the southeastern part of the United States, to become the second-largest discount airline. Recently, it started flying long-distance routes to the western part of the country.

    JetBlue Airways began operating in 1999 by providing low-cost transcontinental service from the under-used John F. Kennedy (JFK) Airport located outside of New York City. It was the first discount airline to compete on long-distance domestic flights, which had been a highly profitable part of the major airlines' business. JetBlue has ordered 200 feeder airlines to fly passengers from small cities in the northeast to its major airport in New York City. JetBlue intends to fly these passengers and others originating in New York City on its profitable long-distance flights across the country.

    The discount airline movement spread to Europe in the 1990s, and discount airlines have sharply cut into the market share of the high-cost national airlines. The largest discounter in Europe is Ryanair. It is modeled after Southwest with an even more bare-bones approach to services.

    There is some concern that discount airlines are now expanding too rapidly and that they could be setting themselves up for a shakeout along with the major airlines. The major airlines and their affiliates have witnessed the growth and profitability of the discount airlines, and some have decided to reorganize as discount airlines. In 2002, Arizona-based America West sharply lowered its cost and converted from a full-service airline to a discount airline.

    In 2004, Atlantic Coast Airline, which was a feeder to two major airlines, changed its name to Independence Air and became a discount airline flying to 35 cities from Dulles International Airport in Washington, D.C. In early 2005, American West acknowledged that it was holding discussions with US Airways about forming a new discount airline that would be even larger than Southwest.

    In chapter one, we will look at how the stage was set for deregulation in the US. In the second chapter we visit two start-up airlines that tried to capitalize on the opportunity presented by deregulation—and failed. The next couple of chapters discuss the cut-throat response by the major airlines and the tactics they adopted to combat competition.

    Most of the subsequent chapters are devoted to the new airlines that came in with a low-cost model and how some of them managed to break the cozy oligopoly of the majors. International events in Europe and Asia and the relevance of the US experience is also discussed.

    The book concludes by addressing the big question: what will be the fate of the majors airlines? With four airlines in bankruptcy in 2006, the US airline industry is experiencing a significant crisis. The major airlines incurred an incredible loss of more than $20 billion from 2001 to 2004. These losses are expected to pile up throughout 2006 and could continue even longer. Furthermore, the Federal government loaned the troubled airlines $15 billion in 2002 based on the argument that the “September 11, 2001 crisis” was a primary reason for the plight of the major airlines. There is no doubt that their losses were in part due to the aftermath of a troubled economy and reduced demand for air travel. But a significant and ongoing factor in the huge losses of the principal airlines is that too many of them have high cost structures. Their expensive hub-and-spoke systems are broken, and need extensive repair. Permitting the major airlines to consolidate and downsize could help reduce their financial problems, but even this move will not totally resolve these issues.

    The remainder of the decade is going to be very challenging for the US airline industry. As it braces for the inevitable rationalization, there will be new lessons for the global airline industry. In the meantime, it is possible to predict how the battle for the skies is likely to turn out in fast-liberalizing economies by comparing and contrasting deregulation in the US.

  • Notes

    1. Paul S. Dempsey and Andrew R. Goetz. Airline Deregulation and Laissez-Faire Mythology. Westport CT: Quorum Books, 1992, p. 59.

    2. Ibid., p. 162.

    3. Ibid., p. 167.

    4. Ibid., p. 169.

    5. Ibid.

    6. Ibid., pp. 173–74.

    7. Ibid., p. 174

    8. Ibid., p. 179.

    9. Ibid., p. 175.

    10. Jonathan B. Wilson. “The Lessons of Airline Deregulation and the Challenge of Foreign Ownership of U.S. Carriers,” The George Washington Journal of International Law and Economics, Vol. 24, No. 1, 1990, pp. 116–24.

    11. Ibid., p. 117.

    12. Ibid., p. 120.

    13. Ibid., p. 122–23.

    14. Ibid., p. 124.

    15. Bill Wilkins. “Airline Deregulation: Neoclassical Theory as Public Policy,” Journal of Economic Issues, Vol. XVII, No. 2, June, 1984, p. 419.

    16. Ibid., p. 420.

    17. Ibid., p. 421.

    18. Ibid.

    19. Ibid., p. 422–23.

    20. Anthony Brown, The Politics of Airline Deregulation, Knoxville: The University of Tennessee Press, 1987.

    21. Ibid., p. 103.

    22. Ibid., p. 106.

    23. Ibid.

    24. Ibid.

    25. Ibid.

    26. Ibid., p. 108.

    27. Ibid., p. 116.

    28. Ibid.

    29. Ibid., p. 117–18.

    30. Ibid., p. 133.

    31. Ibid., p. 118.

    32. Ibid., p. 122–23.

    33. “Sky's the Limit: Despite Lower Fares, West Coast Airlines Are Flying High,” Barron's National Business and Financial Weekly, June 16, 1996, p. 5.

    34. Jackie and Kevin Freiburg, Nuts!. New York: Broadway Books, 1996.

    35. Kevin Trinkle, http://www.psa-history.org/articles/hist.html, accessed on April 14, 2005.

    36. SW company website.

    37. “Sky's the Limit,” Barron's.

    38. Freiburg, Nuts!.

    39. J. Heskett, “Southwest Airlines” case study (abridged update), Harvard Business School Publishing; Harvard, MA, 1993, p. 2.

    40. PSA website background information

    41. Freiburg, Nuts! p. 39.

    42. HBS case study, p. 2.

    43. Freiburg, Nuts! pp. 17, 18.

    44. “Sky's the Limit,” Barron's.

    45. Ibid.

    46. Freiburg, Nuts! pp. 22, 23.

    47. “Special Report: Turbulent skies,” The Economist, July 10, 2004, Vol. 372, p. 68.

    48. Roger Eglin and Berry Ritche, Fly Me, I'm Freddie. Rawson: Wade Publishers, 1980, p. 150.

    49. Ibid., p. 145.

    50. Ibid., p. 154.

    51. Ibid., p. 205.

    52. Ibid., p. 195.

    53. Ibid., p. 73.

    54. Ibid.

    55. Ibid., pp. 73, 74.

    56. Ibid., p. 75.

    57. Howard Banks, The Rise and Fall of Freddie Laker, London: Faber and Faber Limited. 1982, p. 95.

    58. Ibid., p. 78.

    59. Ibid., p. 88.

    60. Ibid., p. 9.

    61. Jeffrey Robinson, “But Will It Fly,” Barron's, April 18, 1983, p. 41.

    62. Robert E. Dalla, “Settlement Reached in Laker Suit,” Los Angeles Times, July 13, 1985, p. 1.

    63. “Upstarts in the Sky: Here Comes a New Kind of Airline,” Business Week, June 15, 1981, p. 78.

    64. “People Express Leases Three Boeing Co. 747s,” Wall Street Journal, Feb. 22, 1984, p. 1.

    65. William M. Carley, “Rapid Ascent: People Express Flies Into Airline's Big Time In Just 3 Years Aloft—Its Newark, N.J. Hub Hums With 150 Takeoffs a Day, Tope in New York Area—Will Growing Pains Set In,” Wall Street Journal, March 30, 1984, p. 1.

    66. Ibid.

    67. Ibid.

    68. Ibid.

    69. “People Express Traffic Rises,” Wall Street Journal, April 5, 1984, p. 1.

    70. Edwin A Finn Jr. and Roy J. Harris Jr., “Five Airlines Cut Cross-Country Fares, Sparking Fear of Price War In Industry,” Wall Street Journal, June 11, 1984, p. 1.

    71. William M. Carley, “People Express's Newark-Chicago Entry Underscores Shift in Strategy of Carrier,” Wall Street Journal, August 9, 1984, p. 1.

    72. Trish Hall, “People Express to Serve Detroit, Miami In Its Challenge to Major Carriers' Routes,” Wall Street Journal, August 17, 1984, p. 1.

    73. William M. Carley, “People Express Will Add Route To San Francisco—Flights From Newark, N.J., Are Readied To Challenge United, American, TWA,” Wall Street Journal, September 10, 1984, p. 1.

    74. “People Express to Add Service to Cleveland,” Wall Street Journal, October 3, 1984, p. 1.

    75. “People Express to Add Newark to Denver Route,” Wall Street Journal, October 31, 1984, p. 1.

    76. “People Express to Add Orlando Flights,” Wall Street Journal, November 2, 1984, p. 1.

    77. “People Express Plans New Service,” Wall Street Journal, November 28, 1984, p. 1.

    78. “People Express Traffic,” Wall Street Journal, January 3, 1985, p. 1.

    79. Laurie Cohen, “American Airlines Slashes Fares on Many Routes; Industry Stock Prices Slip as Rival Carriers Follow—New Discount Category, 70% Below Coach Rate, Has Many Restrictions,” Wall Street Journal, June 18, 1985, p. 1.

    80. Delia Flores and Harlan S. Byrne, “United Air Says It Will Retain Some Discounts—Decision Is Triggering Fears of Renewed Fare Wars; Airline Stock Prices Fall,” Wall Street Journal, February 7, 1985, p. 1.

    81. See note 35.

    82. “People Express Posts $18.8 Million Deficit for the First Quarter,” Wall Street Journal, April 24, 1985, p. 1.

    83. Janet Guyon, “People Express Sets Service to 5 Cities, Including Hubs of Delta, American Air,” Wall Street Journal, July 17, 1985, p. 1.

    84. Jonathan Dahl, Matt Moffett, and Daniel Hertzberg, “People Express Obtains Pact to Buy Frontier Air's Parent for $24 a Share,” Wall Street Journal, October 9, 1985, p. 1.

    85. Robert E. Dallos, “People Express, Frontier Unit Slash Air Fares Subsidiary Will Become Discount, No-Frill Line,” Los Angeles Times, February 11, 1986, p. 2.

    86. “Frontier Airline Announces Price Cuts Up to 60 Percent,” Journal Record, February 11, 1986.

    87. William M. Carley, “People Express, in Major Strategy Shift, Will Seek to Attract Business Travelers,” Wall Street Journal, April 29, 1986, p. 1.

    88. William M. Carley, “Bumpy Flights: Many Travers Gripe About People Express, Citing Overbooking—Lost Bags Also Are Common; Chief Says Public Benefits From Carrier's Low Fares—Can It Lure Business Trade?,” Wall Street Journal, May 19, 1986, p. 1.

    89. “Alternatives ‘Exhausted’ Frontier File Chapter 11,” Journal Record, Oklahoma City, Okla., August 29, 1986.

    90. Robert E. Dallos, “People Express Fades into History as Merger is Okay'd;” Los Angeles Times, December 30, 1986, p. 1.

    91. Brook Adams, “A Firmer Hand on the Airlines Without Turning the Clock Back, Deregulation Needs Revision,” Los Angeles Times, December 19, 1988, p. 5.

    92. Ibid.

    93. Paulette Thomas, “Airline Amity: Rivals' Aid to Braniff In Leaving Dallas Hub Suggests New Coziness—Ten Years After Deregulation, Carriers Appear to Avoid Competitors' Flight Paths,” Wall Street Journal, August 31, 1988, p. 1.

    94. Martha M. Hamilton, “The Hubbing of America: Good or Bad?,” The Washington Post, February 5, 1989, p. 1.

    95. Robert E. Dallos, “Airline Travel Revolves on Hubs,” Los Angeles Times, May 4, 1986, p. 1.

    96. Harlan S. Byme, “United Air's New Tactics Bring Success,” Wall Street Journal, October 10, 1984, p. 1.

    97. Ibid.

    98. Scott Kilman, “Growing Giants: An Unexpected Result of Airline Decontrol Is Return to Monopolies—Big Carriers Are Dominating Nation's Hub Airports, Legislators Are Concerned—Higher Fares and Less Service,” Wall Street Journal, July 20, 1987, p. 1.

    99. Ibid.

    100. See note 1.

    101. Hobart Rowen, “Air Fares: Higher and Higher,” The Washington Post, November 17, 1988, p. A5.

    102. Ibid.

    103. Martha M. Hamilton, “GAO Links Hub Dominance to Sharply Higher Air Fare,” The Washington Post, June 8, 1989, p. E2.

    104. Robert L. Rose, “Flight Maneuvers: Major U.S. Airlines Rapidly Gain Control Over Regional Lines—They Say Service Improves, But Critics See the Market Closing to New Entrants—Big Stick: Reservation Codes,” Wall Street Journal, February 17, 1988, p. 1.

    105. Ibid.

    106. Ibid.

    107. Ibid.

    108. Ibid.

    109. “TRB from Washington: Skyway Robbery,” The New Republic, April 25, 1988, p. 4.

    110. Ibid.

    111. Danna K. Henderson, “Commission Cost Nosedive,” Air Transport World, October 1996, pp. 104–6.

    112. “Airline Competition: DOT's Implementation of Airline Regulatory Authority,” United States General Accounting Office, June 1989, p. 17.

    113. “Sabre Sad To Engage in ‘Subtle Bias’ Against Airlines,” Airline Financial News, August 19, 2002, p. 1.

    114. See note 18.

    115. Ibid.

    116. Steven Borenstein, “Hubs and High Fares: Dominance and Market Power in the U.S. Airline Industry,” The Rand Journal of Economics, Autumn 1989, p. 344.

    117. Kenneth M. Mead, “Airline Competition: Industry Competitive and Financial Problems,” United States General Accounting Office, September 11, 1991, p. 1.

    118. Ibid., p. 3.

    119. “Airline Competition: Higher Fares and Less Competition Continue at Concentrated Airports,” United States General Accounting Office, July 1993, Washington D.C., p. 2.

    120. “Higher Fares and Less Competition Continue at Concentrated Airports,” United States General Accounting Office, July 1997, Washington D.C., p. 2.

    121. Ibid.

    122. “Legacy Carrier Revenue Premiums Fourth Quarter 2002,” Domestic Aviation Brief Number 20, Office of Aviation and International Affairs, Aviation Analysis, Washington D.C., p. 1.

    123. Richard M. Weintraub, “Rivals Challenge American Airlines in a Texas Court,” The Washington Post, July 10, 1993, p. F.1.

    124. Ibid.

    125. Ibid.

    126. Bridget O'Brian, “Verdict Clears AMR on Illegal Pricing Charges—Carrier Didn't Try to Force Northwest, Continental To Fail, U.S. Jury Says,” Wall Street Journal, August 11, 1993, p. A.3.

    127. Peter S. Greenburg, “How Consumers Pay for Air Deregulation,” Los Angeles Times; September 3, 1989, p. V112.

    128. Paul Stephen Dempsey, “Predatory Practices By Northwest Airlines: The Monopolization of Minneapolis/St. Paul,” Press Release http://www.suncountry.com/about/pressmono.htm, accessed on June 25, 2002, p. 12.

    129. Ibid., p. 2.

    130. Bruce Ingersoll and James P. Miller, “Forced by U.S., Northwest Quits Pressuring Rival—Moved by the White House Ends Years of Inaction On Air Industry Pricing,” Wall Street Journal, March 29, 1993, p. A3.

    131. Ibid.

    132. Ibid.

    133. Dempsey, Paul Stephen, n. 128.

    134. Ibid., p. 24.

    135. Ibid., pp. 24, 25.

    136. “Review of Competitive Practices in Atlanta,” AirTran Holdings Inc. Atlanta, GA: 2002. May 25, 1999, p. 3.

    137. “Unfair Exclusionary Conduct in the Air Transportation Industry,” US Department of Transportation Press Release, Washington D.C., April 7, 1998.

    138. Ibid.

    139. Ibid., p. 4.

    140. Stephen Labaton with Laurence Zuckerman, “Airline Is Accused of Predatory Pricing,” The New York Times, May 14, 1999, p. A.1.

    141. Ibid.

    142. Anna Wilde Mathews and Scott McCartney, “U.S. Sues American Air in Antitrust Case—No. 2 Carrier Faces Charges of Forcing Small Rivals Out of Its Hub in Dallas,” Wall Street Journal, May 14, 1999, p. A.3.

    143. Laurence Zuckerman and Stephen Labaton, “American Airlines Is the Winner in a U.S. Antitrust Case,” The New York Times, April 28, 2001, p. C.1.

    144. Ibid.

    145. John R. Wilke and Scott McCartney, “American Airlines Secures Antitrust Win—Judge Dismisses U.S. Case, Says Competitive Moves Were Company's Right,” Wall Street Journal, April 30, 2001, p. A.3.

    146. Dan Carney, “Predatory Pricing: Cleared for Takeoff,” Business Week, May 14, 2001, p. 50.

    147. Mark Wigfield, “U.S. to Appeal AMR Court Decision,” Wall Street Journal, June 27, 2001, p. A.4.

    148. Garry Kissel, Poor Sailor's Airline: A History of Pacific Southwest Airlines, McLean, VA: Paladwr Press, 2002, p. 14.

    149. “Sky's the Limit: Despite Lower Fares, West Coast Airlines Are Flying High,” Barron's, June 16, 1966, p. 5.

    150. http://www.catchoursmile.com, p. 4.

    151. http://www.jetpasa.com/index/history, p. 3.

    152. http://www.catchoursmile.com, p. 5.

    153. Ibid., p. 6.

    154. Ibid.

    155. Ibid.

    156. http://www.catchoursmile.com/Main2, p. 1.

    157. Ibid., p. 1.

    158. Ibid., p. 2.

    159. Ibid., pp. 3, 4.

    160. Ibid., pp. 4, 5.

    161. http://www.catchoursmile.com/Main3, p. 1

    162. Ibid.

    163. Garry Kissel, Poor Sailor's Airline, p. 110.

    164. Ibid., p. 111.

    165. Ibid., pp. 55–78.

    166. Ibid., p. 171.

    167. Ibid.

    168. Ibid., p. 147.

    169. Ibid., pp. 159, 172.

    170. Ibid., p. 172.

    171. Ibid., pp. 172–73, 186.

    172. The PSA History Page, http://www.cactuswings.com/psa/article/hist, pp. 5, 6.

    173. http://www.catchoursmile.com/Main3, pp. 3, 7.

    174. Garry Kissel, Poor Sailor's Airline, pp. 239, 240.

    175. Ibid., p. 7.

    176. Ibid.

    177. Ibid., pp. 246, 250.

    178. http://www.catchoursmile.com/Main3, pp. 3, 6.

    179. http://www.jetpsa.com/history, The History Of PSA, pp. 5–7.

    180. Ibid., p. 6.

    181. http://www.catchoursmile.com/Main4, p. 2.

    182. http://www.jetpsa.com/history, The History of PSA, p. 5.

    183. http://www.catchoursmile.com/Main4, p. 2.

    184. Ibid., p. 3.

    185. Freiberg, Nuts!, pp. 14–15.

    186. Katrina Brooker, “The Chairman of the Board Looks Back,” Fortune, May 28, 2001, Vol. 143, p. 63.

    187. Freiberg, Nuts!, pp. 15–16.

    188. Katrina Brooker, “The Chairman of the Board Looks Back,” p. 62.

    189. Freiberg, Nuts!, pp. 16–21.

    190. Ibid., p. 33.

    191. Katrina Brooker, “The Chairman of the Board Looks Back,” p. 65.

    192. Ibid.

    193. Freiberg, Nuts!, p. 38.

    194. SW website, “Airlines Fact Sheet, Southwest Airlines Distinctions,” Online, 08/30/2004, http://www.southwest.com/about_swa/press/factsheet.html#Distinctions.

    195. Freiberg, Nuts!, p. 107.

    196. Ibid., p. 84.

    197. Ibid., p. 81.

    198. Katrina Brooker, “The Chairman of the Board Looks Back,” p. 66.

    199. SW website, “Airlines Fact Sheet, Southwest Airlines Distinctions,” Online, 08/30/2004, http://www.southwest.com/about_swa/press/factsheet.html#Distinctions.

    200. SW website, “Airlines Fact Sheet, Cities Served by Southwest,” Online, 08/30/2004, http://www.southwest.com/about_swa/press/factsheet.html#SWA%20Cities.

    201. SW website, “History, Yearly Outline,” Online, 08/30/2004, http://www.southwest.com/about_swa/airborne.html.

    202. http://Airchive.com website, “Timetables and Route Maps, Southwest/Muse Air,” Online, 10/20/2004, http://www.airchive.com/site%20pages/timetables-southwest.html.

    203. SW website, “History, yearly outline,” Online, 08/30/2004. http://www.southwest.com/about_swa/airborne.html.

    204. Thomas Troxell, “Short-Haul Traffic: It's Propelling Southwest Airlines to Long-Term Gains,” Barron's National Business and Financial Weekly, May 24, 1982, p. 40.

    205. Katrina Brooker, “The Chairman of the Board Looks Back,” p. 65.

    206. Thomas Troxell, “Short-Haul Traffic: It's Propelling Southwest Airlines to Long-Term Gains.”

    207. Katrina Brooker, “The Chairman of the Board Looks Back,” p. 65.

    208. “Why Herb Kelleher Gets So Much Respect from Labor,” Business Week, September 24, 1984, pp. 112–13.

    209. http://Airchive.com website, “Timetables and Route Maps, Southwest/Muse Air,” Online, 10/20/2004, http://www.airchive.com/site%20pages/timetables-southwest.html.

    210. SW website, “History, yearly outline,” Online, 08/30/2004, http://www.southwest.com/about_swa/airborne.html.

    211. Katrina Brooker, “The Chairman of the Board Looks Back,” p. 65.

    212. The Handbook of Texas Online, “Muse Air,” Online, 11/17/2004, http://www.tsha.utexas.edu/handbook/online/articles/view/MM/epm3.html.

    213. Laurie Cohen, “Southwest Air Signs Definitive Accord to Buy Muse Air,” Wall Street Journal, March 11, 1985, p. 1.

    214. Francis Brown, “Southwest Air to Close Its Transtar Unit; Continental Expected to Gain From Move,” Wall Street Journal, July 30, 1987, p. 1.

    215. Katrina Brooker, “The Chairman of the Board Looks Back,” p. 65.

    216. Francis Brown, “Southwest Air to Close Its TranStar Unit, p. 1.

    217. http://Airchive.com website, “Timetables and Route Maps, Southwest/Muse Air,” Online, 10/20/2004, http://www.airchive.com/site%20pages/timetables-southwest.html.

    218. SW website, “History, yearly outline,” Online, 08/30/2004, http://www.southwest.com/about_swa/airborne.html.

    219. Ibid.

    220. http://Airchive.com website, “Timetables and Route Maps, Southwest/Muse Air,” Online, 10/20/2004, http://www.airchive.com/site%20pages/timetables-southwest.html.

    221. SW website, “History, Yearly Outline,” Online, 08/30/2004, http://www.southwest.com/about_swa/airborne.html.

    222. Freiberg, Nuts!, p. 87.

    223. “Morris Air Services,” Online, 12/20/2004, http://www.flyryan.com/history/MorrisAir.htm.

    224. SW website, “History, Yearly Outline,” Online, 08/30/2004, http://www.southwest.com/about_swa/airborne.html.

    225. Freiberg, Nuts!, New York, pp. 136–37.

    226. SW website, “History, yearly outline,” Online, 08/30/2004, http://www.southwest.com/about_swa/airborne.html.

    227. Ibid.

    228. http://Airchive.com website, “Timetables and Route Maps, Southwest/Muse Air,” Online, 10/20/2004, http://www.airchive.com/site%20pages/timetables-southwest.html.

    229. SW website, “History, Yearly Outline,” Online, 08/30/2004, http://www.southwest.com/about_swa/airborne.html.

    230. Ibid.

    231. Ibid.

    232. SW website, “Airlines Fact Sheet,” Online, 08/30/2004, http://www.southwest.com/about_swa/press/factsheet.html.

    233. Standard & Poor's, “Southwest Airlines Stock Report,” The McGraw-Hill Companies, August 28, 2004.

    234. Elizabeth Sounder, “Airlines Stake in Oil Hedging Rise with Prices,” Wall Street Journal, August 18, 2004, p. 1.

    235. Micheline Maynard, “Out of the Blue, Southwest Airlines Chief Resigns,” The New York Times, July 16, 2004, p. C2.

    236. Melanie Trottman, “At Southwest, New CEO Sits In a Hot Seat,” Wall Street Journal, July 19, 2004, p. B1.

    237. Dawn Gilbertson, “Southwest fighting Dallas Rule,” The Arizona Republic, March 16, 2005.

    238. David Field, Aggressive Southwest, December 2004, Vol. 20, Issue 12, p. 1.

    239. Trebor Banstetter, Knight Ridder Tribune Business News, March 24, 2005, p. 1.

    240. Wendy Zellner, “Dressed to Kill…Competitors,” Business Week, February 21, 2005, p. 60.

    241. Trebor Banstetter, “Southwest looks at fight against Dallas airport restrictions in long terms,” Knight Ridder Business News (Washington), March 29, 2005, p. 1.

    242. The Wright Amendment Consumer Penalty, The Campbell-Hill Aviation Group, Inc., June 7, 2005, p. 3.

    243. Lou Whiteman, “Southwest: Monsters of the Midway,” The http://Deal.com, December 17, 2004, p. 1.

    244. Scott McCartney, “The Middle Seat: Southwest Airlines Set To Crack Hawaii Market; Code-Sharing With ATA Marks a Big Growth Move; New York, D.C. Join Network,” The Wall Street Journal, January 4, 2005, p. D.5.

    245. Ibid.

    246. Martin J. Morgan, “Southwest, ATA airlines form alliance,” Knight Ridder Tribune Business News, January 14, 2005, p. 1.

    247. Mark Skertic, “ATA wants to prove it means business with strategy change,” Knight Ridder Tribune Business News, March 13. 2005, p. 1.

    248. Julie Johnson, “Southwest smells blood,” Crain's Chicago Business, April 4, 2005, p. 1.

    249. Southwest Expands to Philadelphia—Third Quarter 2004, Office of Aviation and International Affairs, Aviation Analysis, Domestic Aviation Competition Issue Brief Number 26, p. 4.

    250. Adrian Schofield, “Latest Expansion Will Use Last of New Planes, Southwest Says,” Aviation Daily, August 19, 2005, p. 2.

    251. Scott McCarthy, “The Middle Seat: Travelers Benefit When Airline Hub Closes; As Gates Free Up, Discounter Move in and Fares Drop; Lesson From Pittsburgh,” Wall Street Journal, November 1, 2005, p. 1.

    252. Mark Belko, “Southwest flies into No. 3 spot, but airport traffic lags,” Knight Ridder Tribune Business News, Washington, August 9, 2005, p. 1.

    253. Trebor Banstetter, “Southwest tops airline survey; American 4th,” Knight Ridder Tribune Business News, May 17, 2005, p. 1.

    254. “People Express Outbids Texas Air Corp. for Frontier Airlines,” Journal Record, October 9, 1985.

    255. “Frontier Airlines Announces Price Cuts Up to 60 Percent,” Journal Record, February 11, 1986.

    256. Pamela Brownstein, “People Express a Solid Idea That Went Awry, Say Analysts,” Journal Record, June 26, 1986.

    257. “People Express to Shut Down Frontier Airlines,” Journal Record, August 23, 1986.

    258. “Alternatives ‘Exhausted,’ Frontier Files Chapter 11,” Journal Record, August 29, 1986.

    259. “Houston-Based Texas Air Corp. to Buy People Express Airline,” Journal Record, September 16, 1986.

    260. “Frontier's Fate Still in Holding Pattern/Rumor of Buyer Surfaces,” Journal Record, August 27, 1986.

    261. “Sleeping’ Frontier Airlines Considers Flying the Big Sky,” The Billings Gazette, December 9, 1983.

    262. Joan M. Feldman, “‘We understand United As Well As United Does’,” Air Transport World, July 2001, Vol. 38, pp. 35–38.

    263. Jim Ludwick, “Meat and Potatoes Service: Airline Hopes Missoula Fliers Take a Liking to its Simple Tastes,” Missoulian, August 3, 1994, p. D1.

    264. Robert Schwab, “Where Sam Addoms Goes, Respect Follows: Resurrecting Frontier,” ColoradoBiz, October 2002, Vol. 29, p. 16.

    265. Matthew Okerlund, “Airline Ready to Link GF, Denver,” Grand Forks Herald, June 8, 1994, p. A1.

    266. Jim Ludwick, “Meat and Potatoes Service: Airline Hopes Missoula Fliers Take a Liking to its Simple Tastes,” Missoulian, August 3, 1994, p. D1.

    267. Amy Bryer, “Frontier Celebrates 10 Years,” The Denver Business Journal, June 25, 2004, Vol. 55, p. A15.

    268. Greg Griffin, “Frontier Airlines' Savior Bids Farewell,” Knight Ridder Tribune Business News, April 1, 2002, p. 1.

    269. Jim Ludwick, “Meat and Potatoes Service: Airline Hopes Missoula Fliers Take a Liking to its Simple Tastes,” Missoulian, August 3, 1994, p. D-1.

    270. “Frontier Airlines Posts Profit,” Wall Street Journal, June 18, 1996, p. A4.

    271. Amy Bryer, “Frontier Celebrates 10 Years,” The Denver Business Journal, June 25, 2004, Vol. 55, p. A.15.

    272. Greg Griffin, “Frontier Airlines Savior Bids Farewell,” Knight Ridder Tribune Business News, April 1, 2002, p. 1.

    273. Robert W. Moorman, “The ‘New’ New Frontier,” Air Transport World, August 1996, Vol. 33, p. 86.

    274. Amy Bryer, “Pioneer Pauses for Look Back,” The Denver Business Journal, August 20, 2004, Vol. 56, p. A5.

    275. Alex Markels, “Frontier, Seeing a Chance in Denver, Elbows In,” The New York Times, September 29, 2002, p. 3.

    276. Laurence Zuckerman, “Airbus Is Said to Win Order From Frontier,” The New York Times, October 14, 1999, p. C7.

    277. Phyllis Jacobs Griekspoor, “Frontier Airlines Scores High on Jets' Upkeep, Safety,” Knight Ridder Tribune Business News, January 21, 2002, p. 1.

    278. Amy Beyer, “Pioneer Pauses for Look Back,” The Denver Business Journal, August 20, 2004, Vol. 56, p. A5.

    279. “Frontier's Chief is Retiring,” The New York Times, April 1, 2002, p. C3.

    280. Lynn Bronikowski, “Jeff Potter, Frontier Chief Reaches for the Sky,” ColoradoBiz, August 2002, Vol. 29, p. 68.

    281. “Frontier Air Accuses United of Predatory Practices,” Wall Street Journal, January 17, 1997, p. B5.

    282. “Justice Dept. Reviews Claims of Airlines' Price Squeeze,” Los Angeles Times, February 12, 1997, p. 1.

    283. Scott McCartney, “Airlines: Upstart's Tactics Allow It to Fly In Friendly Skies of Big Rival,” Wall Street Journal, June 23,1999, p. B1.

    284. Joan M. Feldman, “‘We understand United As Well As United Does’,” Air Transport World, July 2001, Vol. 38, pp. 35–38.

    285. Alex Markels, “Frontier, Seeing a Chance in Denver, Elbows In,” The New York Times, September 29, 2002, p. 3.

    286. Todd Neff, “United Airlines Launches Discount Carrier ‘Ted’ at Denver,” Knight Ridder Tribune Business News, February 13, 2004, p. 1.

    287. Micheline Maynard, “Not Yet Airborn, and Ted Is in a Fare War,” The New York Times, January 24, 2004, p. C2.

    288. Eric Hubler, “Frontier Airlines Flies Denver Schoolchildren to Museum in Kansas City, Mo,” Knight Ridder Tribune Business News, January 15, 2002, p. 1.

    289. Keith L. Alexander, “Four Small Carriers Make Deadline to Request Loan Guarantees,” The Washington Post, June 29, 2002, p. E1.

    290. Elizabeth Albanese, “Denver-based Frontier Is First Airline to Repay Post-9/11 Federal Loan,” Bond Buyer, December 23, 2003, Vol. 346, p. 28.

    291. Greg Griffin, “Frontier Airlines Applies for Direct Flight from Denver to Mexican Resorts,” Knight Ridder Tribune Business News, August 7, 2002, p. 1.

    292. “Frontier Wins DOT Approval to Offer Denver-Cancun Service,” Aviation Daily, September 24, 2002, Vol. 349, p. 6.

    293. Greg Griffin, “Flights at Denver Airport Shift Focus to Leisure Travel,” Knight Ridder Tribune Business News, August 22, 2002, p. 1.

    294. Dick Woodbury, “Frontier Airline Finds Great Success with Expanded Mexican Service,” Knight Ridder Tribune Business News, March 8, 2004, p. 1.

    295. “Frontier to Sell Flights Operated By Mesa Under New Pact,” Commuter/Regional Airline News, September 17, 2001, Vol. 19, p. 1.

    296. Greg Griffin, “Frontier Airlines Needs New Partner for JetExpress Regional Service,” Knight Ridder Tribune Business News, July 3, 2003, p. 1.

    297. SL. “Frontier Posts $6 Million Loss, Changes Denver Fare Structure,” Aviation Daily, February 6, 2003, Vol. 351, p. 3.

    298. Greg Griffin, “Denver-based Frontier-Airlines Reports Net Loss, Sees ‘No Relief’ Ahead,” Knight Ridder Tribune Business News, July 30, 2004, p. 1.

    299. “Frontier Lowers Fares, Eases Rules on Many Flights,” Wall Street Journal, February 6, 2003, p. D2.

    300. Greg Griffin, “Denver-based Frontier-Airlines Reports Net Loss, Sees ‘No Relief’ Ahead,” Knight Ridder Tribune Business News, July 30, 2004, p. 1.

    301. Andy Vuong, “Red Ink Continues to Flow at Frontier Airlines,” Knight Ridder Tribune Business News, May 18, 2003, p. 1.

    302. “Frontier Rebounding With Lower Costs, Higher Traffic,” Airline Financial News, July 21, 2003, Vol. 21, p. 1.

    303. Adrian Schofield, “Analysts Praise Frontier Cost Cuts Depsite $2 Million Loss,” Aviation Daily, November 1, 2004, Vol. 358, p. 1.

    304. “A New Frontier,” Airline Business, June 2003, Vol. 19, p. 68.

    305. Louis Aguilar, “Frontier Makes Deep Cuts in Denver Airport Walk-Up Fares,” Knight Ridder Tribune Business News, January 23, 2004, p. 1.

    306. “Frontier Set to Use Los Angeles Airport in Strategy Switch,” Wall Street Journal, December 19, 2003, p. 1.

    307. Amy Bryer, “DIA gates Settlement Brings Peace to United, Frontier,” The Denver Business Journal, December 26, 2003, Vol. 55, p. A35.

    308. Steven Lott, “Frontier Plans to Sharply Scale Back LAX Focus City,” Aviation Daily, June 29, 2004, Vol. 356, p. 2.

    309. Greg Griffin, “Frontier Hires Ad Agency,” Knight Ridder Tribune Business News, October 17, 2002, p. 1.

    310. Barry Janoff, “What Do You Call a Funny Airplane? A One Liner,” Brandweek, August 18–25, 2003, Vol. 44, p. 28.

    311. Amy Bryer, “Frontier's Animal Ads Proving Popular, Attention Getters,” The Denver Business Journal, March 12, 2004, Vol. 55, p. A3.

    312. Greg Griffin, “‘Whole New Animal’ Ad Campaign Boosts Growth for Denver's Frontier Airlines,” Knight Ridder Tribune Business News, October 16, 2003, p. 1.

    313. “Frontier Airlines Trims Routes But Lifts Its Marketing,” Knight Ridder Tribune Business News, November 23, 2004, p. 1.

    314. Louis Aguilar, “Frontier Airlines Targets United's Elite Fliers with VIP Program,” Knight Ridder Tribune Business News, February 27, 2004, p. 1.

    315. Greg Griffin, “Frontier Airlines Redoes In-flight Entertainment as Part of Rebranding Effort,” Knight Ridder Tribune Business News, July 18, 2004, p. 1.

    316. Amy Bryer, “Frontier Celebrates 10 Years,” The Denver Business Journal, June 25, 2004, Vol. 55, p. A15.

    317. Rick Barrett, “Frontier Airlines to Initiate Daily Flights Between Milwaukee, Denver,” Knight Ridder Tribune Business News, May 30, 2003, p. 1.

    318. “One on one with ValuJet's Robert Priddy,” Commuter/Regional Airline News, May 15, 1995, p. 1.

    319. Richard M Weintraub, “The Low-Fare Air War Lands at Dulles: ValuJet Begins Flights to Atlanta With Plans to Expand Service to 13 Cities Soon,” The Washington Post, January 13, 1994, p. D10.

    320. Robert W. Moorman, “Southwest without the frills,” Air Transport World, September 1994, pp. 113–17.

    321. James P. Woolsey, “ValuJet: So far, so good,” Air Transport World, December 1995, pp. 67–69.

    322. Rick Brooks, “Which is Better: Chaos In the Aisles or at the Gate?,” Wall Street Journal, February 8, 1995, p. T3.

    323. “ValuJet Airlines,” Going Public, the IPO Reporter, June 6, 1994, p. 9.

    324. “ValuJet to Begin Service in October,” Air Transport World, September 1993, p. 132.

    325. Stephen C. Fehr, “Fire on ValuJet Raises Questions on Containment; Probe Focuses on Spread of Engine Blaze,” The Washington Post, June 10, 1995, p. C1.

    326. Rick Brooks, “ValuJet Close to Agreement on New Hub,” Wall Street Journal, November 2, 1994, p. F1.

    327. “ValuJet Buys 58 New McDonnell Douglas Aircraft,” Airline Financial News, 23 October 1995, p. 1.

    328. Anthony Faiola, “ValuJet Resumes Service On a Wing and a Fare; Airline Seeks to Lure Back Bargain Seekers,” The Washington Post, October 1, 1996, p. C1.

    329. Faye Bowers, “Fact vs. Guesswork in ValuJet Tragedy,” Christian Science Monitor, May 24, 1996, p. 1.

    330. “ValuJet Launches the MD-95,” Air Transport World, December 1995, p. 69.

    331. Don Phillips, “ValuJet Cabin Fire Melted Aluminum; Cockpit Voice Recorder Found, May Offer Clues to Final Moments,” Washington Post, May 27, 1996, p. A1.

    332. James Gerstenzang, “ValuJet to Stop Flying Till it Fixes Deficiencies,” Los Angeles Times, June 18, 1996, p. A1.

    333. Martha Brannigan, “ValuJet Sees Flights Disrupted Until 4th Quarter,” Wall Street Journal, May 23, 1996, p. A3.

    334. “Fallout from the ValuJet Crash,” The Washington Post, July 23, 1996, p. C6.

    335. Matthew L. Wald, “F.A.A. Shuts Down ValuJet, Citing ‘Serious Deficiencies’,” The New York Times, June 18, 1996, p. A1.

    336. Robert A. Rosenblatt, “ValuJet Stock Plunges 35%; Chief Says Airline will Overcome Tough Odds,” Los Angeles Times, June 19, 1996, p. 1.

    337. Anthony Faiola, “ValuJet Passes FAA Safety Inspection; After 58-Day Review, Airline Awaits DOT Clearance to Fly Again,” The Washington Post, August 30, 1996, p. D1.

    338. Matthew L. Wald, “Valujet, Grounded for Safety Problems, is Cleared to Fly Again,” The New York Times, September 27, 1997, p. A24.

    339. Toby Eckert, “Mikelsons said ‘no’ to ValuJet,” Indianapolis Business Journal, July 21, 1997, p. A1.

    340. “AirTran Plans Orlando Service,” Wall Street Journal, August 23, 1994, p. B4.

    341. Robert W. Moorman, “‘Takes a Licking, Keeps on Ticking’,” Air Transport World, February 1995, pp. 63–65.

    342. “One-on-one with AirTran Airways' John Horn,” Commuter/Regional Airline News, November 6, 1995, p. 1.

    343. Susan Carey, “Travel: Tiny Airlines Offer Better Ways to the Sun,” Wall Street Journal, March 17, 1995, p. B15.

    344. Andrew Meadows, “AirTran Flies into Upstate Market,” Spartanburg Herald-Journal, January 21, 1996, p. B6.

    345. “Regional Notebook,” Air Transport World, October 1995, pp. 126–28.

    346. “Valujet to Acquire AirTran Airways for $61.8 Million,” The New York Times, July 11, 1997, p. D3.

    347. Katy Eckmann, “Same Fla. City, Different Shop for AirTran,” Adweek, October 20, 1997, p. 4.

    348. Anthony L. Velocci, Jr., “Aviation Week & Space Technology,” Market Focus, January 19, 1998, p. 11.

    349. Mike Beirne, “AirTran continues its comeback,” Adweek, July 26, 1999, p. 4.

    350. Martha Brannigan, “Air Pressure: Discount Carrier Lands Partners In Ill-Served Cities—Shrugging Off Industry Woes, AirTran Thrives on Deals That Guarantee Revenue—Flying High Rollers to Biloxi,” Wall Street Journal, July 16, 2002, p. A1.

    351. Mary Jane Credeur, “AirTran chips away at Delta,” Atlanta Business Chronicle, May 14, 2004, p. A1.

    352. Michael Wall, “DOT places Delta and other carriers on its radar,” Atlanta Business Chronicle, November 5, 1999, p. 5A.

    353. Martha Brannigan, “AirTran Holdings Appoints Leonard As President, CEO,” Wall Street Journal, January 7, 1999, p. 1.

    354. “One-on-one with AirTran Airways' Joe Leonard,” Commuter/Regional Airline News, March 19, 2001, p. 1.

    355. Gary Cohn “Eastern Airlines' Leonard Is Viewed As Heir Apparent to Succeed Borman,” Wall Street Journal, May 23, 1985, p. 1.

    356. Charles Haddad, “Catch Him if You Can. Joe Leonard's Low Costs have AirTran Outflying Delta,” Business Week, September 15, 2003, p. 93.

    357. “AirTran Airways Picks Fornaro as President,” Wall Street Journal, March 24, 1999, p. 1.

    358. Don Phillips, “Jet's Crew Discussed Landing on Highway; AirTran DC-9 Instead Returned Safely to N.C. Airport After Smoke Filled Cockpit,” The Washington Post, August 22, 2000, p. A5.

    359. Martha Brannigan and Chad Terhune, “AirTran Criticizes NTSB Chief Over DC-9 Fire,” Wall Street Journal, December 4, 2000, p. C6.

    360. Rajiv Vyas, “4 years after crash, AirTran in a climb,” Atlanta Business Chronicle, May 12, 2000, p. A1.

    361. Joan M. Feldman, “Once more into the breach,” Air Transport World, August 2000, pp. 31–33.

    362. David Goetzl, “AirTran flies in the face of big-time carriers,” Advertising Age, May 8, 2000, pp. 3–5.

    363. John Schmeltzer, “Orlando, Fla.-Based AirTran to Lease Boeing Jets Intended for American,” Chicago Tribune, October 24, 2002, p. 1.

    364. Joan M. Feldman, “Tough Times Breed Opportunity,” Air Transport World, June 2002, pp. 40–42.

    365. “Discount airlines lead way in online ticket sales,” Journal Record, September 25, 2000.

    366. Ian Lamont, “Talk to me,” Network World, June 4, 2001, pp. 64–65.

    367. Chris McGinnis, “Air chaos may route some travelers to AirTran,” Atlanta Business Chronicle, March 9, 2001, p. A8.

    368. James F. Peltz, “AirTran Flying a Steady Course; Low-Fare Carrier Is Expected to Post Its Ninth Consecutive Quarterly Profit,” Los Angeles Times, April 17, 2001, p. C1.

    369. “Industry Briefs,” Airline Financial News, June 5, 2000, p. 1.

    370. “AirTran Unit August Traffic Rose,” Wall Street Journal, September 5, 2002, A6.

    371. Tom Belden, “AirTran's Popularity Surges; Airline Becomes Fastest-Growing in Philadelphia,” Philadelphia Inquirer, September 14, 2003.

    372. Trebor Banstetter, “AirTran Brings Its Low-Cost Strategy to American's Home Hub,” Fort Worth Star-Telegram, October 3, 2003.

    373. “AirTran Pilots Agree to Help Carrier,” Aviation Daily, September 18, 2001, p. 4.

    374. “Lowest of the low,” Airfinance Journal, March 2003, p. 1.

    375. James Ott, “A ‘Blooming’ Airline; 737-700s will Transform AirTran Just as 717 Did, But Don't You Dare Call it a ‘Major’,” Aviation Week & Space Technology, June 21, 2004, p. 49.

    376. Rick Barrett, “Rising Jet-Fuel Prices Hurt Already Suffering Airlines,” Milwaukee Journal Sentinel, March 12, 2003.

    377. “The Orlando Sentinel, Fla., Business Insider Column,” Orlando Sentinel, April 29, 2002.

    378. Steven Lott, “JetBlue to Add XM Radio, Fox; AirTran Plans First IFE System,” Aviation Daily, January 9, 2004, p. 6.

    379. Joe Leonard, “U.S. Government Subsidizes Inefficiency In Airline Industry,” Aviation Week & Space Technology, June 21, 2004, p. 86.

    380. Mark Belko, “AirTran to Offer Nonstop Flights between Pittsburgh, Pa., Orlando, Fla,” Pittsburgh Post-Gazette, October 17, 2002.

    381. “AirTran Reports Quarterly Profit Thanks to Cost Control, Share Gains,” Aviation Daily, January 29, 2003, p. 1.

    382. Lin-Fisher, Betty. “AirTran Airways Adds Flight at Akron-Canton Regional Airport in Ohio.” Akron Beacon Journal, February 8, 2002.

    383. “New Services,” Airline Industry Information, February 22, 2002.

    384. Jason Gertzen, “AirTran to Start Service in Milwaukee,” Milwaukee Journal Sentinel, March 28, 2002.

    385. Greg Griffin, “AirTran to Add Atlanta-Denver Nonstop Flights,” Denver Post, January 8, 2003.

    386. Jerry Siebenmark, “Boeing or Airbus? AirTran to make 100-airplane order,” Wichita Business Journal, March 21, 2003, p. 1.

    387. J. Lynn Lunsford and Nicole Harris, “Leading the News: Boeing Tops Airbus for AirTran Deal; Growing Discount Carrier Is to Pay About $6 Billion For More Than 100 Planes,” Wall Street Journal, July 1, 2003, p. A3.

    388. “Four Gates to Open at Dallas/Fort Worth International Airport,” Dallas Morning News, July 9, 2003.

    389. Trebor Banstetter and Byron Okada, “Discount Carrier AirTran Unveils Major Expansion at Dallas Airport,” Fort Worth Star-Telegram, September 5, 2003.

    390. Trebor Banstetter, “Delta Air Lines to exit Fort Worth, Texas-area airport; AirTran to expand,” Fort Worth Star-Telegram, October 5, 2004.

    391. Trebor Banstetter, “American Airlines to Reduce Fares from Fort Worth, Texas, to Los Angeles Area,” Fort Worth Star-Telegram, June 10, 2004.

    392. David Bond, “Delta, America West, Airtran Report on 2001 and Look Ahead,” Aviation Week & Space Technology, February 4, 2002, p. 46.

    393. Rachel Sams, “AirTran Wants $1.5 Million Guaranteed Revenue from Tallahassee, Fla,” Tallahassee Democrat, March 2, 2002.

    394. Rachel Sams, “Tallahassee, Fla., Report Finds Travelers Flying on AirTran Airways,” Tallahassee Democrat, April 10, 2002.

    395. Rachel Sams, “Tallahassee, Fla., Officials Fly AirTran Half of the Time, Review Finds,” Tallahassee Democrat, June 3, 2003.

    396. Rocky Scott, “AirTran to Drop Service to Tallahassee, Fla., Citing Operational Losses,” Tallahassee Democrat, July 22, 2004.

    397. Peter Dujardin, “AirTran Airways Begins Service to New York, Florida from Newport News, Va,” Daily Press, March 6, 2002.

    398. Peter Dujardin, “AirTran Airways Expects to Continue Getting Subsidy from Newport News, Va,” Daily Press, February 6, 2003.

    399. Peter Dujardin, “AirTran Adds Third Nonstop Flight from Newport News, Va., to New York,” Daily Press, April 26, 2003.

    400. Molly McMillin, “AirTran Airways Will Be in Wichita, Kan., Beginning May 8,” Wichita Eagle, March 1, 2002.

    401. Phyllis Jacobs Griekspoor, “AirTran Airways Has Been Successful in Helping Lower Airfare Cost,” Wichita Eagle, June 13, 2002.

    402. Dan Voorhis, “Wichita, Dan., Makes Payment to AirTran Airways,” Wichita Eagle, July 3, 2002.

    403. Dan Voorhis, “Discount-Carrier AirTran Runs Out of Wichita, Dan., Funds,” Wichita Eagle, September 14, 2002.

    404. “AirTran to End Direct Service between Wichita, Kan., and Chicago in February,” Wichita Eagle, December 21, 2002.

    405. Jerry Siebenmark, “Air service summit will look for ways to keep low-fare carriers in Wichita,” Wichita Business Journal, April 18, 2003, p. 1.

    406. “Council approves AirTran contract with subsidies,” Wichita Business Journal, May 14, 2004, p. 28.

    407. Lori O'Toole Buselt, “AirTran offers nonstop service from Wichita, Kan., to Orlando, Fla,” Wichita Eagle, August 6, 2004.

    408. Molly McMillin, “AirTran Airways Bills Wichita, Kan., for More Than $600,000,” Wichita Eagle, November 1, 2003.

    409. Mike Pare, “Chattanooga, Tenn., Airport Hopes to Land AirTran Service,” Chattanooga Times/Free Press, September 28, 2002.

    410. Mary Jane Credeur, “AirTran shifts its focus,” Atlanta Business Chronicle, April 15, 2005, p. 1A.

    411. M. Paul Jackson, “AirTran Airways to discontinue service at Greensboro, N.C., airport,” Winston-Salem Journal, July 23, 2004.

    412. Kyle Stock, “The Post and Courier, Charleston, S.C., tourism column,” Post and Courier, August 16, 2004.

    413. Kyle Stock, “Low-Fare Carrier Independence Air to Touch Down in Charleston, S.C,” Post and Courier, May 19, 2004.

    414. Mary Jane Credeur, “AirTran chips away at Delta,” Atlanta Business Chronicle, May 14, 2004, p. A1.

    415. David Bond, “Sounding Off,” Aviation Week & Space Technology, August 2, 2004, p. 27.

    416. Evan Perez and Nicole Harris, “Clipped Wings: Despite Early Signs of Victory, Discount Airlines Get Squeezed; AirTran Faces Dual Threat From a Revitalized Delta And New Set of Insurgents; The Trouble With Independence,” Wall Street Journal, January 17, 2005.

    417. Todd Pack, “Southwest foils Orlando, Fla.-based AirTran's plans for Chicago airport's gates,” Orlando Sentinel, December 17, 2004.

    418. “Southwest Airlines Celebrates 20 Years in Chicago!,” http://phx.corporate-ir.net/phoenix.zhtml?c=92562&p=irol-newsArticle&ID=686671&highlight=accessed on May 12, 2006.

    419. Trebor Banstetter, “Discount Air Carriers Design Business-Specific Lines to Capture New Market,” Fort Worth Star-Telegram, May 17, 2004.

    420. “AirTran Holdings Inc.: Profit Slid 95%, but Fuel Hedges Prevented a Loss During Period,” Wall Street Journal, January 26, 2005, p. 1.

    421. Jerome Greer Chandler, “Atlanta's Phoenix AirTran emerged from ValuJet as a profitable and expanding airline with its sights keenly focused on safety and reliability,” Overhaul & Maintenance, May 2003, p. 37.

    422. Jason Lynch and Mark Dagostino, “Man in Motion,” People, Aug 26, 2002, p. 89.

    423. Eryn Brown, “A Smokeless Herb,” Fortune, May 28, 2001, Vol. 143, p. 79.

    424. Ibid.

    425. Barbara S. Peterson, Blue Streak: Inside JetBlue, the Upstart That Rocked an Industry, New York: Penguin Group, 2004, p. 13.

    426. Ibid., p. 24.

    427. Ibid., pp. 15–16.

    428. James Wynbrandt, Flying High: How JetBlue Founder and CEO David Neeleman Beats the Competition-Even in the World's Most Turbulent Industry, New Jersey: John Wiley & Sons, Inc., 2004, p. 43.

    429. Ibid., p. 60.

    430. Ibid., pp. 60–61.

    431. Barbara S. Peterson, Blue Streak, p. 40.

    432. Ibid., p. 43.

    433. Ibid., p. 38.

    434. Ibid.

    435. Frances Fiorino, “JetBlue Pursues Growth While Staying ‘Small’,” Aviation Week and Space Technology, June 10, 2002, Vol. 156, p. 41.

    436. Amy Rottier, “The Skies are JetBlue,” Workforce, September 2001, Vol. 80, p. 22.

    437. Melanie Wells, “Lord of the Skies,” Forbes, October 14, 2002, Vol. 170, p. 130.

    438. Barry Estabrook, “In the Air, on the Cheap,” The New York Times, April 4, 2004, p. 5.9.

    439. James Wynbrandt, Flying High, pp. 146–48.

    440. Ibid., p. 101.

    441. Ibid., p. 89.

    442. Ibid., p. 91.

    443. Ibid., p. 97.

    444. Ibid., p. 75.

    445. Susan Carey, “The Importance of Not Being Earnest—JetBlue Spooks Commercials of Rivals, But Airline Says Spots aren't Mean-Spirited,” Wall Street Journal, June 5, 2003, p. B.10.

    446. Barbara S. Peterson, Blue Streak, p. 89.

    447. Laurence Zuckerman, “Ambitious Low-Fare Carrier Names Itself JetBlue Airways,” New York Times, July 15, 1999, p. C9.

    448. Sally B. Donnelly, “Blue skies,” Time, July 30, 2001, Vol. 158, p. 24.

    449. Barbara S. Peterson, Blue Streak, p. 121.

    450. James Wynbrandt, Flying High, p. 161.

    451. Ibid., p. 205.

    452. Ibid., pp. 115–16.

    453. Robert Carey, “Nothing but blue skies,” Successful Meetings, July 2002, Vol. 51, p. 74.

    454. Bob Mims, “Head of JetBlue Airways Stresses Commitment to Worker, Customer Satisfaction,” Knight Ridder Tribune Business News, February 22, 2003, p. 1.

    455. James F. Peltz, “Upstart JetBlue Flies High Despite Travel Slump; Airlines: The Carrier isn't Cutting Operations or its Work Force to Survive, and Aircraft Delivery is on Track,” Los Angeles Times, October 12, 2001, p. C1.

    456. James Wynbrandt, Flying High, p. 204.

    457. Perry Flint, “It's a blue world after all,” Air Transport World, June 2003, Vol. 40, p. 36.

    458. James Bernstein, “Analysts say JetBlue, Southwest face eventual fight for market,” Knight Ridder Tribune Business News, July 19, 2004, p. 1.

    459. Barbara S. Peterson, Blue Streak, p. 171.

    460. “JetBlue Leaves Atlanta As Delta Battles AirTran,” Airline Financial News, November 3, 2003, Vol. 21, p. 1.

    461. Susan Carey, “JetBlue Orders 100 Embraer Planes,” Wall Street Journal, June 11, 2003, p. A2.

    462. David Neeleman and Dave Barger, “Letter to Stockholders (2003),” April 26, 2004, accessed March 30, 2005, http://www.curran-connors.com/jb2003/letter.html.

    463. Susan Carey, “JetBlue Flies Into High Pressure; Rapid Growth, New Competition Squeeze Profit Margin, Revenue,” Wall Street Journal, January 30, 2004, p. B3.

    464. Micheline Maynard, “JetBlue Will Begin Flying Out of La Guardia,” New York Times, June 24, 2004, p. C6.

    465. James Wynbrandt, Flying High, p. 237.

    466. James Bernstein, “JetBlue to add terminal to New York City's Kennedy Airport,” Knight Ridder Tribune Business News, August 6, 2004, p. 1.

    467. Tommy Fernandez, “Timing's right as JetBlue revs up in NY,” Crain's New York Business, July 5, 2004, Vol. 20, p. 1.

    468. Susan Carey, “JetBlue Flies Into High Pressure; Rapid Growth, New Competition Squeeze Profit Margin, Revenue,” Wall Street Journal, January 30, 2004, p. B3.

    469. “JetBlue Lands at Top of Quality List,” Wall Street Journal, April 6, 2004, p. D3.

    470. Tommy Fernandez, “Timing's right as jetBlue revs up in NY,” Crain's New York Business, July 5, 2004, Vol. 20, p. 1.

    471. Felix Sanchez, “JetBlue Airways profits dip 71 percent in third quarter,” Knight Ridder Tribune Business News, October 29, 2004, p. 1.

    472. “JetBlue Announces Fourth Quarter and Full Year 2004 Earnings,” JetBlue Press Release, January 27, 2005, accessed March 30, 2005, <http://www.jetblue.com/learnmore/pressprint.asp?newsID=295>.

    473. Matthew Brelis, “High-Flying Start-Up Finds Niche in Not-So-Friendly Skies,” Knight Ridder Tribune Business News, January 19, 2003, p. 1.

    474. James Wynbrandt, Flying High, p. 162.

    475. Micheline Maynard, “Low-Fare Airlines Decide Frills Maybe Aren't So Bad After All,” The New York Times, January 7, 2004, p. C1.

    476. Kristi Sue Labetti, “Motivating a blue streak,” Potentials, September 2002, Vol. 35, p. 75.

    477. Wendy Zellner, “Is JetBlue's Flight Plan Flawed?,” Business Week, February 16, 2004, p. 74.

    478. James Wynbrandt, Flying High, p. 231.

    479. Ibid., p. 241.

    480. Frances Fiorino, “JetBlue Pursues Growth While Staying ‘Small’,” Aviation Week and Space Technology, June 10, 2002, Vol. 156, p. 41.

    481. James Wynbrandt, Flying High, p. 204.

    482. Chuck Salter, “And Now the Hard Part,” Fast Company, May 2004, p. 66.

    483. Siobhán Creaton, Ryanair—How A Small Irish Airline Conquered Europe. London: Aurum Press Ltd., 2004. p. 5.

    484. Ibid., p. 2.

    485. Ibid., pp. 10–14.

    486. Ibid., pp. 19–20.

    487. http://www.ryanair.com, “About Ryanair,” accessed on December 14, 2004.

    488. Siobhán Creation, Ryanair, p. 20.

    489. Ibid., pp. 22, 27.

    490. Ibid., pp. 23, 25–26.

    491. Ibid., p. 24.

    492. Siobhán Creaton, Ryanair, pp. 32–34.

    493. Ibid., p. 4.

    494. Ibid., pp. 35–38.

    495. Ibid., p. 62.

    496. Ibid., p. 43.

    497. Arthur Reed, “Southwest Style in Europe.” Air Transport World. Cleveland: August 1995. Vol. 32, No. 8; pp. 63–64.

    498. Siobhán Creaton, Ryanair, pp. 44.

    499. Ibid., p. 45–47.

    500. http://www.ryanair.com/investor/download/quarter2_05.pdf “Appendix 1-Ryanair Number 1 for Earnings” accessed on May 11, 2004.

    501. Siobhán Creaton, Ryanair, pp. 54–55.

    502. Ibid., p. 137.

    503. Ibid., pp. 61–62.

    504. Simon Calder, No Frills—The Truth Behind the Low-Cost Revolution in the Skies. London: Virgin Books Ltd., 2002. p. 62.

    505. Ibid., p. 24.

    506. Arthur Reed, “Southwest Style in Europe.”

    507. Ibid.

    508. Keith Johnson and Daniel Michaels, “Big Worry for No-Frills Ryanair: Has It Gone as Low as It Can Go?,” Wall Street Journal, July 1, 2004, p. A1.

    509. http://www.ryanair.com/investor/download/quarter2_05.pdf “Inflight Entertainment System,” accessed on March 10, 2004.

    510. Graham Bowley, “How Low Can You Go?,” Financial Times, London, June 20, 2003.

    511. Kevin Done, “Pilot's Unions Link Up to Test Ryanair,” Financial Times, London, October 19, 2004.

    512. Graham Bowley, “How Low Can You Go?,” Financial Times, London, June 20, 2003.

    513. Siobhán Creaton, Ryanair, p. 90.

    514. Ibid., p. 93.

    515. Ibid., p. 98.

    516. Siobhán Creaton, Ryanair, p. 110.

    517. William Underhill, “Next: No-Frills Pizza?; The Founder of easyJet has Plans for Cruises, Buses, Phones…;” [Atlantic Edition], Newsweek, New York, May 10, 2004, p. 44.

    518. Miller Freeman, “Air Rianta Deal would Boost Ryanair Traffic.,” Travel Trade Gazette, Tonbridge, October 21, 1998, p. 6.

    519. Siobhán Creaton, Ryanair, pp. 165–71.

    520. Jane Spencer, “The Discount Jet-Set: Europe's Budget Airlines; As Their Ranks Swell, Carriers Drop Prices—and Amenities; London to Berlin for $25.,” Wall Street Journal. New York, April 27, 2004. p. D1.

    521. Daniel Rogers, “Can Ryanair Keep Flying High?,” Marketing, London, June 5, 2003, p. 22.

    522. Ibid.

    523. Ibid.

    524. Commuter Regional Airline News International. Potomac, May 26, 1997. Vol. 10, No. 11, p. 1.

    525. http://www.ryanair.com/about/abouthome.html, accessed on December 16, 2004.

    526. Graham Bowley, “How Low Can You Go?,” Financial Times, London, June 20, 2003.

    527. Jane Spencer, “The Discount Jet-Set,” Wall Street Journal.

    528. Simon Calder, No Frills, p. 92.

    529. http://www.ryanair.com 12/15/2004. Customer Service FAQ, Punctuality Figures, “Ryanair has beaten easyJet on punctuality every week this year,” accessed on December 15, 2004.

    530. Jane Spencer, “The Discount Jet-Set,” Wall Street Journal.

    531. Graham Bowley, “How Low Can You Go?,” Financial Times.

    532. Ibid.

    533. Ryanair 2004 Annual Report. http://www.rayanair.com Investor relations.

    534. http://www.ryanair.com/abouthome.html, accessed on December 17, 2004.

    535. http://www.ryanair.com/investor/download/quarter2_05.pdf, accessed on March 6, 2005.

    536. “New Owners To Turn Air Asia into No-Frill 737 Airline,” Aviation Week, September 14, 2001, p. 6.

    537. Cris Prystay, “Tune Air Founder Goes Against the Odds To Establish a Low-Cost Asian Airline,” Wall Street Journal, Eastern edition, New York, December 10, 2001, p. 1.

    538. Ibid., p. 2.

    539. Eirmalasare Bani, “Air Asia, MAS Likely to Complement Each Other,” Business Times, January 24, 2002, p. 1.

    540. “Malaysia Approves Expansion of Second-Tier Carriers,” Aviation Daily, Washington, January 25, 2002, p. 5.

    541. Seelen Sakran, “Soaring High on Low Fare,” Malaysian Business, Kuala Lumpur, July 16, 2003, p. 29.

    542. Ibid.

    543. Michael Shari, “A Discount Carrier Spreads Its Wings,” Business Week, September 1, 2003, p. 27.

    544. Dalila Abu Bakar, “Tune Air claims unfair competition over MAS move to cut domestic fares,” Business Times. Kuala Lumpur, August 7, 2002, p. 1

    545. Ibid.

    546. S. Jayasankaran and Cris Prystay, “Fare Fight: Upstart Shakes Up The Clubby World Of Asian Flying; Air Asia's Low-Cost Service Caters to New Fliers; Fending Off State Carriers; Saving on Food, Brake Pads,” Wall Street Journal, July 20, 2004, p. A1.

    547. “Malaysia Government Eyes MAS, Air Asia Fare War,” Aviation Daily, August 9, 2002, p. 6.

    548. Jake Lloyd-Smith, “Malaysia Blazes Trail with No-Frills Airline Venture,” Knight Ridder Tribune Business News, Washington, June 16, 2003, p. 1.

    549. “Air Asia forms agreement with GE Capital Aviation Services for 11 Boeing Aircraft,” Airline Industry Information, Coventry, June 18, 2003, p. 1.

    550. “Malaysia Blazes Trail with No-Frills Airline Venture,” Airline Industry Information, Coventry, June 18, 2003, p. 1.

    551. Michael Shari, “A Discount Carrier Spreads Its Wings,” Business Week, September 1, 2003, p. 27.

    552. Anonymous, “Air Asia moves into Indonesia, Airline Business, London, December 2004, p. 26.

    553. William Dennis, “Low-Cost Challenger; Thailand's skies are becoming crowed as carriers vie for tourists and business fliers,” Aviation Week & Space Technology, December 1, 2003, p. 52.

    554. William Dennis, “Thai Air Asia Leasing 737s For Flights to Vietnam, Cambodia,” Aviation Daily, August 11, 2005, p. 5.

    555. William Dennis, “Thai Airways To Share Routes With Thai Air Asia,” Aviation Daily, Washington, February 16, 2005, p. 8.

    556. William Dennis, “Air Asia Posts Profit For Fiscal First Half,” Aviation Daily, February 24, 2005, p. 5.

    557. Boonsong Kositchotethana, “Budget pioneer enters consolidation phase: Air Asia to focus on core countries,” Knight Ridder Tribune Business News, August 1, 2005, p. 1.

    558. William Dennis, “Air Asia Adds 20 More A320s To Its Existing MOU For 40,” Aviation Week, March, 28, 2005, p. 5.

    559. Anonymous, “Award Winners Optimistic, Realistic,” Air Transport World, Cleveland, April 2005, pp. 76–78.

    560. Alex Ortolani, “Asia's Budget Airlines Head for Shakeout; For No-Frill Carriers, High Fuel Prices, Stiffer Competition Boost Pressure to Keep Costs Low,” Wall Street Journal, April 4, 2005, p. B2.

    561. John Lancaster, “India is Fertile Soil for Budget Airlines; Companies See Vast Market in Middle Class,” The Washington Post, February 22, 2005, p. E1.

    562. Neelam Mathews, “South Asia's First with e-tickets and Turboprops, Air Deccan is Aiming at India's Business Travel Market,” Aviation Week & Space Technology, August 19, 2003, p. 41.

    563. Anonymous, “Private airlines in India on a high, seek more freedom,” Knight Ridder Tribune Business News, Washington, December 30, 2004, p. 1.

    564. Ibid., p. 41.

    565. Max Kingsley-Jones, and Justin Wastnage, “Turboprops are back,” Flight International London, June 28–July 4, 2005, p. 35.

    566. Lancaster, N. 5620.

    567. Ibid.

    568. K. Giriprakash and V.K. Varadarajan, “Air Deccan bets on volume game,” Businessline, Chennai, February 14, 2005, p. 1.

    569. Manjeet Kripalani in New Delhi and Stanley Holmes in Seattle, with Carol Matlack in Paris, “Dogfight Over India,” Business Week, May 2, 2005, p. 20.

    570. “Air Deccan Inks $17.5 m Deal with ATR,” Knight Ridder Tribune Business News, February 12, 2005, p. 1.

    571. Ibid., p. 1.

    572. Kriplani, No. 5700.

    573. Cuckoo Paul, “The Captain Who Gave the Common Man Wings,” Knight Ridder Tribune Business News, July 30, 2005, p. 1.

    574. See Chapter 4 on “Predatory Pricing” in the United States.

    575. Aarati Krishnan, “Low-cost Airlines: They May Need More Than a Wing and a Prayer,” Businessline, Chennai, June 26, 2005, p. 1.

    576. Anonymous, “Air Deccan appoints Ryanair official as COO,” Businessline, Chennai, June 24, 2005, p. 1.

    577. Frank Swoboda, “Doubts About Airlines' Course; Wall St. Unimpressed with Carriers Despite Recent Profits,” The Washington Post, July 26, 1998, p. H2.

    578. “Major Airlines Climb to Heightened Earnings in Latest Quarter,” Airlines Financial News, January 26, 1998, Vol. 13, p. 1.

    579. Frank Swoboda, “Doubts About Airlines' Course.”

    580. Ibid.

    581. Ibid.

    582. Peter Keating, “The Best Airlines to Fly Today,” Money, November 1997, Vol. 26, pp. 118–23.

    583. “Major Airlines Climb to Heightened Earnings in Latest Quarter,” Airlines Financial News, January 26, 1998, Vol. 13, p. 1.

    584. Sonoko Setaishi, “Dividing Up the Skies—Major U.S. Airlines May Slip Into the Red,” Wall Street Journal, January 9, 2001, p. A6.

    585. Frank Swoboda, “Doubts About Airlines' Course.”

    586. “Southwest is Rated Top Airline for a Third Year; Transportation: But an Annual Quality Survey Shows that Passenger Dissatisfaction with Carriers is at an All-Time High,” Los Angeles Times, April 21, 1998, p. 1.

    587. Peter Keating, “The Best Airlines to Fly Today.”

    588. Frank Swoboda, “Airline Service Dips In 3 of 4 Categories,” The Washington Post, April 11, 2000, p. E.01.

    589. James Ott, “Market Focus,” Aviation Week & Space Technology, June 21, 1999, Vol. 150, p. 15.

    590. Virginia Postrel, “Even in Good Times, Airlines Depend on a Hairline Balancing of Supply and Demand,” The New York Times, October 11, 2001, p. C2.

    591. Steve Lott, “Airlines Slammed by Weak Revenues, Post First Net Loss in Years,” Aviation Daily, June 13, 2001, Vol. 344, p. 9.

    592. Alex Berenson, “A Plunge in Profits is Raising Risk for Stock Market and Economy,” The New York Times, July 29, 2001, p. 1.1.

    593. “Airlines Industry Likely to Suffer $1.4 Billion Hit in 2001,” Airlines Financial News, July 30, 2001, Vol. 19, p. 1.

    594. Ibid.

    595. Scott McCarney, “Frightened Workers and Investors Buffet Airlines,” Wall Street Journal, September 18, 2001, p. A3.

    596. Ibid.

    597. Amy Joyce, “Atlantic Coast Finds Profit In Slump; Regional Airline Picks up More Fliers, Routes from Bigger Carriers,” The Washington Post, October 10, 2001, p. E1.

    598. Ibid.

    599. Ibid.

    600. Keith Alexander, “United Airlines Lost $1.15 Billion; Quarter is Worst in Carrier's History; Delta Reports a Loss of $259 Million,” The Washington Post, November 2, 2001, p. E3.

    601. Henry Canaday, “Layoffs Strike Maintenance (Relatively) Glancing Blow; Maintenance Departments Didn't Get Hit as Hard as Some Airline Groups,” Overhaul and Maintenance, Jan/Feb 2002, Vol. VIII, p. 49.

    602. Dave Woodfill, “Southwest Airlines Won't Rest on Success,” Knight Ridder Tribune Business News, June 20, 2002, p. 1.

    603. Ibid.

    604. Matthew Belis, “Airline Industry Struggles to Rebound,” Knight Ridder Tribune Business News, August 12, 2002, p. 1.

    605. Ibid.

    606. Jane Engle, “News, Tips & Bargains; Travel Insider; Low-cost Airlines Prompt Majors to Play Their Game; American, United, Delta Take Page from Competitors to Vie for Dwindling Customers,” Los Angeles Times, July 27, 2003, p. L3.

    607. Edward Wong, “Pass Ideas to Center Aisle. American Needs ‘Em,” The New York Times, July 21, 2002, p. 31.

    608. The Need for Domestic U.S. Airfare Structure Reform, Association of Corporate Travel Executives, Arlington, VA: 2002.

    609. Ibid.

    610. Ibid.

    611. Trebor Banstetter, “Continental Airlines Suffers Fifth Straight Losing Quarter,” Knight Ridder Tribune Business News, July 17, 2002, p. 1.

    612. “Low-Fare Carriers to Triumph in ‘Near or Distant Future’,” Airlines Financial News, March 24, 2003, Vol. 21, p. 1.

    613. Ibid.

    614. Trebor Banstetter, “Business Travel Report Says Focus on Cheap Fares Won't Help Major Airlines,” Knight Ridder Tribune Business News, October 1, 2004, p. 1.

    615. Amy Tsao, “Seven Solutions to the Airlines' Woes,” Business Week, August 24, 2004.

    616. Julius Maldutis, “Legacy Airlines: Wolly Mammoths or Their Own Saviors?,” Aviation Week & Space Technology, March 22, 2004, Vol. 160, p. 66.

    617. Ibid.

    618. Trebor Banstetter, “Continental Airlines Suffers Fifth Straight Losing Quarter.”

    619. “The Right Price,” Aircraft Economics, September 1, 2003, p. 1.

    620. Matthew Belis, “Airline Industry Struggles to Rebound.”

    621. “Mixed Signals,” Airlines Business, March 2003, Vol. 19, p. 7.

    622. Jerry Seper, “Delta Joins Northwest, Continental Airlines in Alliance,” Knight Ridder Tribune Business News, January 18, 2003, p. 1.

    623. Keith Alexander, “United Official to Look Out for Customers,” The Washington Post, May 13, 2003, p. E1.

    624. Eric Torbenson, “Major U.S. Airlines Evaluate Next Moves in Competition to Stay Afloat,” Knight Ridder Tribune Business News, August 18, 2002, p. 1.

    625. James Ott, “‘De-Peaking’ American Hubs Provides Network Benefits ‘Rolling Hub’ Saves Airlines $100 Million a Year, Cuts Block Time and Creates a New Flow That

    Appeals to Hub Vendors,” Aviation Week & Space Technology, February 17, 2003, Vol. 158, p. 53.

    626. Evan Perez, “Delta Unveils Its Turnaround Plan; Strategy Includes Cutting 7,000 Jobs, Abandoning Dallas-Fort Worth Hub,” Wall Street Journal, September 9, 2004, p. A3.

    627. Mary Jane Credeur, “Operation Clockwork Radical, Risky,” Atlanta Business Chronicle, January 21–27, 2005, pp. A1, A31.

    628. Ibid.

    629. Russell Grantham, “Delta's Big Wager,” The Atlanta Journal-Constitution, January 31, 2005.

    630. Susan Warren, “Continental Profit Outlook Brightens,” Wall Street Journal, June 3, 2005, p. B2.

    631. Steve Josselson, “Phoenix Rises,” Air Finance Journal, December 2003, p. 1.

    632. Ibid.

    633. Mike Beirne, “Are These the Little Airlines That Could,” Brandweek, March 29, 2004, p. 31.

    634. Jeff Clabaugh and Tony Goins, “Independence All Ceases Operations,” http://www.bizjournals.com/columbus/stories/2006/01/02/daily1.html, Business on April 5, 2007.

    635. Steven Lott, “Indy Air Must Keep Costs Low, Stimulate Traffic, Report Says,” Aviation Daily, May 14, 2004, p. 4.

    636. “Independence Air Losses Less Than Expected, But Bankruptcy Fear Is Real,” Airline Business Report, March 14, 2005, p. 1.

    637. Micheline Maynard, “US Airways and America West Plan to Merge,” The New York Times, May 20, 2005, pp. C1, C8.

    638. Dan Reed and Barbara De Lollies, “Merger Talks Revive Notion of Consolidation,” USA Today, April 21, 2004, pp. B1, B2.

    639. Micheline Maynard, “2 US Airlines Weigh the Perks of Togetherness,” The New York Times, April 21, 2005, p. C1.

    640. James Rowley and John Hughes, “US Airways' Wolf Calls Merger Vital,” The Washington Post, March 22, 2001, p. E6.

    641. David Wessel, “Airlines May Have to Fly Without Lifeline,” Wall Street Journal, June 2, 2005, p. A2.

    642. Jagdish N. Sheth and Rajendra Sisodia, The Rule of Three: Surviving and Thriving in Competitive Markets, New York: Free Press, 2002.

    About the Authors

    Jadish N. Sheth is Charles H. Kellstadt Professor of Marketing at the Emory University. He is also the Founder and Director of the Centre for Relationship Marketing of the same university. He has written several books and articles for international journals. He is an advisor to the Economic Development Board, Singapore; the NTIA, Department of Commerce, USA; Department of Transportation, USA; and the Georgia Public Service Commission and a board member of Centre for Telecommunications Management, USC; Wipro Limited; PacWest Telecomm, Inc; Shasun Chemicals & Drugs (India); and Cryo-Cell International.

    Fred C. Allvine is Professor Emeritus, Georgia Institute of Technology. He has authored and co-authored several books including a marketing textbook and two books on competition in the oil industry. He has also been a consultant to the Department of Justice and state regulatory bodies.

    Can Uslay is Assistant Professor of Marketing, Argyros School of Business and Economics, Chapman University. He has written several articles in international journals and presented papers in international conferences across Europe and North America. He is also an ad hoc reviewer for the American Marketing Association Conferences and several academic journals. Uslay's research interests include the airline industry, marketing strategy, and marketing theory construction.

    Ashutosh Dixit is Assistant Professor of Marketing, Cleveland State University. He has co-authored several articles with leading academicians in journal of international repute. He has also won several awards for his research.

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