As the Big 3 pare capacity growth,
Southwest maintains expansion
By Robert Silk
In the years since its founding as an intra-Texas low-cost carrier (LCC) in 1967, Southwest Airlines has
grown into the second
largest U.S. airline as
measured by the capacity of its domestic
But though many
have long since
Southwest as an LCC, analysts say that the
airline’s approach to dealing with weakening
industry demand over the remainder of this
year reveals that its business model is still in-
fluenced by its low-cost roots.
“In the broadest sense of all, Southwest is
still an LCC, and LCCs win more with cost
advantages than with revenue advantages,”
said Seth Kaplan,
managing partner of
the newsletter Airline
Each of the four
major U.S. carriers
— United, American
and Delta along with
Southwest — reported softening demand during earnings calls
last month. Southwest, for example, projects
that its unit revenue, defined as how much
See CAPACITY on Page 24 See AIRBNB on Page 26
[ TO TAKE ON CHALLENGES OVER HOUSING, DISCRIMINATION LAWS ]
Airbnb taps mayors, ex-A.G.
for help in its legal battles
By Danny King
Airbnb recently hired legal and
municipal heavyweights, including
former U.S. attorney general Eric
Holder and ex-Philadelphia mayor
Michael Nutter, as the peer-to-peer
accommodations provider seeks
to gird itself for legal battles in its
most lucrative cities while fighting
allegations that its hosts discrimi-
nate against minorities.
Airbnb, a privately held company, last
month tapped Holder to “help craft a
world-class antidiscrimination policy,”
Airbnb CEO Brian Chesky wrote in a July
20 blog post.
The hiring of Holder, who served as U.S.
attorney general under President Obama
from 2009 to 2015, is part of an effort Airbnb
announced early last month to address allegations that some of its hosts practice discrimination when choosing whom to accommodate in their homes.
‘In the broadest sense of all,
Southwest is still an LCC, and
Stowe Mountain completes its Spruce Peak
LCCs win with cost advantages.’
Seth Kaplan, Airline Weekly
La Compagnie’s CEO on why his all-business-
class carrier survived where others failed.
base with families in mind.
Room inventory is growing as new hotels, rang-
ing from luxe to midprice, come on line.
Without buyer approval, ARC will hold you
accountable if the new owner defaults.
Rise of the robo-agent
Artificial intelligence isn’t the stuff of
science fiction any more as companies
develop apps, chat bots and software for
the travel industry.
BY JAMIE BIESIADA PAGE 14
IN OTHER NEWS
Cruise lines adopt tactics to differentiate products
La Compagnie a survivor in all-biz air service
WWW.TRAVELWEEKLY.COM AUGUST 1, 2016
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