Is Robinhood the Next Southwest or WeWork?
Is the commission-free stockbroker destined to become an industry legend or massive blow out? What does Charles Schwab’s mega acquisition of TD Ameritrade signal?
The concept of budget airlines changed the aviation industry forever. By doing shorter routes, quicker turnarounds, taking away frills like meal service, as well as using cheaper airports or less popular timings, they offered consumers much cheaper prices compared to full service airlines. This resulted in a greater number of travelers who could afford to fly, and also changed the business landscape for pricier, national carriers forever.
The first budget airline was Pacific Southwest Airlines. It begun in 1949, and did only flights between northern and Southern California for 30 years. Then deregulation forced it out of business.
But from that policy shakeup, Southwest Airlines was born. It successfully introduced the standard business model described above that all other budget airlines have copied since.
Southwest Airlines begun in 1971. It is now the largest budget airline in the world and also holds the record for 43 years of profits in a row.
