Solution to Southwest Airlines 1993 expansion.

From our point of view, the most important factor to Southwest success is that it carefully selects the type of markets they enter. Southwest typically chose only very dense, short and medium haul market, which allow Southwest to exploit economies of density and maintain a fleet comprised of a single aircraft type, thus minimizing maintenance, spare parts inventory and pilots training costs. In entering new markets, Southwest chooses airports that are readily accessible, rather than …

…Southwest has been in the short and medium markets for many years and has exploited many profitable routes in the west part; to some extent there are relatively fewer of the short to medium haul markets that Southwest perceives as profitable. Therefore, expanding to the other parts, particularly the east, and entering the longer haul market, looks inevitable. It seems that entering into the Baltimore market with just two airplanes a good and conservative action.