Due to the purchase of AirTran by Southwest, analysts assume customers should see lower prices in the near future, at least to destinations where Southwest flies but AirTran does not. However, this is not common because normally in a business situation such as this Southwest's purchase of AirTran means less competition in the airline industry which in return usually results in higher prices. Without AirTran, the other airline companies don't have the excuse 'Well, the other kids are doing it, there's one less kid.' On the other side of the spectrum, this expansion allows Southwest to serve 100 cities, instead of the previous 69. Also Southwest gains access to 37 new airports in smaller cities that they previously didn't have the funding for or at least they thought the cities were too small to make a profit.
Southwest says that the customer experience at the airport or on the plane wont change much, there will be no assigned seats, no change in the boarding process -- passengers line up and grab any available seat
http://finance.yahoo.com/news/SouthwestAirTran-deal-will-apf-3928083510.html?x=0&sec=topStories&pos=main&asset=&ccode=
Tuesday, September 28, 2010
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