Some fellow associates returned from a vacation this week flying Southwest Airlines. They reported the on-time performance steller and service adequate. We bantered about the opportunities for legacy carriers consolidation and I began wondering: Even with significant cost savings, how does a legacy carrier compete against Southwest? Warren Buffet always talks about management expertise when buying a portfolio. It seems the leadership of the legacy carriers is a rotating door while Southwest makes minor changes and promotes from within. If I’m investing money in the airline industry I see Southwest as the only option.
