Southwest does charge more for non-advance purchase tickets. Business flyers do fly SWA when they have no other direct alternative- some choose SWA b/c of of their high on-time percentage. Furthermore, SWA's fares (compared to YX and DL) are usually higher for the routes I fly- which would make me think that in fact the price discrimination is supporting the lower prices.

SWA's profitability is based more on their attempts to provide low cost service in areas that they can exploit. This does not mean such a model would be succesful for carriers such as UA, AA, DL, which serve major airports instead of just the low cost option. I'll pass on flying to Islip when going to NYC- and we know I won't be flying SWA on a trip over the pond.

I am grateful SWA exists- as it does sometimes come in convenient- and every now and then it may lower the price on a route I fly on another airline.

I guess what I'm saying is that SWA's model overlaps DL, AA, UA model, but is not the same model- nothing is wrong with either model- but to consider need of DL/UA/AA's product exactly the same as the need for SW's is incorrect. Likewise, each will have a different model to fulfill the demand. To state that elite status/benefits is/are not needed in the SWA model- and, therefore, not in DL/AA/UA model is somewhat like saying that the best way to way to grow apples is also the best way to grow oranges since both are fruit.

As for the rest of the elite line issue...

Something, that I don't think has been mentioned is fixed versus variable costs in providing security- the fact that an increase in flying by elites (due to lesser wait times) may decrease the average cost of security per flyer (to a level of over $2.50 a seg).

[This message has been edited by uncflyer16 (edited 03-29-2002).]