Southwest Airlines

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Southwest Airlines

Category: Case Study

Subcategory: Economics

Level: Academic

Pages: 3

Words: 825

Southwest AirlinesExplain the position of the following key stakeholders and their interest in the Wright Amendment in the late 1970s?
Southwest Airlines
Southwest Airlines is one of the major stakeholders in the airline business in Love Field airport. It is popular in the interstate flights, and it has been growing over the years despite the challenges it faces from its competitors. Despite the fact that it was not given a chance to sign the bond ordinance to move its operations to Dallas/Fort Worth (DFW), it fought its way through to continue in business. In the beginning, it was a small airline with low reputation but its CEO initiated drastic changes that helped Southwest Airlines especially when it moved to Hobby Airport. Wright Amendment influences the Southwest Airlines business as it gives regulations that should be followed by the airlines. When Wright Amendment deregulated the airline industry and allowed various commercial airlines to set their prices, it gave Southwest Airline an opportunity to grow through publishing its prices. Wright Airline also gave Southwest Airlines a chance to offer its services from Love Field where it owned the largest market share. Southwest was, therefore, a monopoly at Love Field.
American Airlines
American Airlines was given a chance to sign the bond ordinance to move its services to DFW. It is said to own the largest market share of 84% at the new airport, DFW. Southwest Airlines believed that …

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