Episode 23. The Airline That Nosedived: Pitfalls of The Low-Price Strategy
Strategic Seeing by Svyatoslav Biryulin - A podcast by Svyatoslav Biryulin
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No strategy textbook author forgets to mention Southwest Airlines, the pioneer of the cheap flights industry. Though Herb Kelleher, a co-founder of SWA, was the father of the low-cost airline concept, Ryanair, with its nickel-and-dime approach, became the role model for Spirit Airlines, an American budget airline, in 2006. A few weeks ago, Spirit Airlines filed for bankruptcy, once again proving that being a low-cost carrier is a risky strategy. To sell low doesn’t necessarily mean to f...
