February 24, 2011



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  • Posted by Allyson on March 5, 2012 at 7:17 pm

    Awesome graphic!!! I can add some xnetoct about the airline industry. Why Southwest, JetBlue, and Alaska haven’t merged? Southwest started as a very low-cost carrier in Texas and slowly expanded with that same low-cost mentality. In the 80 s and 90 s, the legacy airlines were full service and didn’t want to be like Southwest. Sophisticated data analysis (forecansting and yield management) allowed the legacy airlines to compete with Southwest without giving away all their seats at cheap preices. So, Southwest only merged with tiny carriers at the time.Alaska has a great niche serving Alaska. It required specially equipped planes and specially trained pilot at many of the smaller Alaskan airports. Although the legacies have tried at times, the costs were too high competing with Alaska. Alaska also has made codeshare alliances with many legacy airlines (Delta, American, etc.), which allows it to make money without the need to merge.Finally, JetBlue is a relative newcomer, but importantly set up a hub in NYC the largest population base in the country. So far, it has not needed to merge but recently announced a major codeshare deal with American.

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