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Budget Airline Value Curve Analysis - Southwest vs Legacy Carriers
How Southwest Airlines revolutionized air travel by eliminating frills and focusing on efficiency.
Value Curves
Reference Company (dashed line)
Strategy Overview
Southwest eliminated traditional airline services like meals, lounges, and seating classes while raising speed, frequency, and friendly service to create a new market space.
Southwest Airlines (shown in #F59E0B) represents the innovative approach, while American Airlines (⭐ reference) represents the traditional industry standard.
Key Differentiators
- Eliminated in-flight meals and airport lounges
- Reduced seating classes to one
- Increased flight frequency and turnaround speed
- Created fun, friendly service culture
- Focused on point-to-point travel instead of hub-and-spoke
ERRC Framework Applied
🚫 Eliminated
- In-flight Meals
- Airport Lounges
📉 Reduced
- Seating Classes
- Hub Connectivity
📈 Raised
- Price
- Speed of Service
- Friendly Service
- Point-to-Point Travel
✨ Created
Blue Ocean Insights
💡
Made flying accessible to bus and car travelers
💡
Competed on speed and convenience rather than luxury
💡
Created a fun, democratic flying experience