GSA: Don’t count on Southwest Airlines to keep fares down
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In its report this week on the US Airways-American Airlines merger, the Government Accountability Office concluded that the “Southwest Effect” isn’t what it used to be.
The Southwest Effect came from a 1993 U.S. Department of Transportation study that found that air fares would decline when Southwest Airlines entered the market. The study came out around the time that Southwest entered the Baltimore market, wrecking other carriers’ fare structure with its own cheap prices.
Here’s … [visit site to read more]