Business Wars Encore: Southwest vs American Airlines | Dogfight Over Dallas | 2
Jun 28, 2021
The fierce rivalry between Southwest and Braniff Airlines heats up as Braniff slashes fares, prompting Southwest to get creative with free drinks for its customers. Tensions rise as lawsuits unfold, with both airlines navigating chaotic courtroom battles. Meanwhile, American Airlines enters the fray, equipped with new tech and strategies. The introduction of the Sabre reservation system changes the game, allowing one airline to gain a crucial edge over the other. It's a high-stakes dogfight for supremacy in the skies!
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Braniff's Price War
- Braniff launched a price war against Southwest Airlines, cutting fares in half on their most profitable route.
- Southwest CEO Lamar Muse was furious and knew they couldn't sustain a long price war.
Southwest's Booze Giveaway
- Instead of matching Braniff's low fares, Southwest offered free alcohol to passengers.
- This targeted their mostly male, business clientele with expense accounts.
Southwest's Ad Campaign
- Southwest ran ads highlighting Braniff's anti-competitive behavior and offering $13 fares or free booze.
- The campaign was successful, with most passengers choosing Southwest despite the higher price.