Southwest Airlines and Alaska Airlines have survived in the market without going international but through the domestic operation. Both these Airlines belong to the United States. Southwest Airlines is a Dallas based airline and is one of the best airlines in the United States. “Southwest Airlines has become the fourth largest major airline in America.” Alaska Air is a Washington based airline.
Both these companies were successful even without going international because they enjoyed the privileges of the government being an airline that belongs to the United States. Even though there are many players in the sector they survived because they provided better services in the domestic markets. “Much of Alaska Airlines’ success can be attributed to the company’s award-winning customer service and commitment to technical innovation.” Alaska Air was superior in terms of the services they rendered and the technology used. This made the company withstand even higher competition from the strongest players. But in the long run when more and more companies are going global and networks get monopolized by the biggest players the company might feel difficult to survive. Especially in the scenario where the costs of running the flights are higher due to the increase in the cost units like maintenance, fuel etc. The company can still be successful and can also reap profits as they do for the whole time. But it cannot explore the advantage and profits of the international markets. Again, when the international players start exploring the domestic markets at a higher rate Alaska Air and Southwest Airlines will struggle to survive.
Now the scenario is of mergers and acquisitions and companies are aggressively competing for the acquisition of the most suitable airlines. Merger and acquisition is a possible solution for these two companies to reap the benefits of the international market. An alliance with any international airline will help the companies to operate globally.
