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Southwest Airlines (LUV) has shed its historical reluctance in product design and is fundamentally transforming from a pure point-to-point provider to a margin-rich full-service player. The company’s greatest advantage remains its unrivaled operational efficiency, supported by the highest aircraft utilization in the industry and a cost base that is approximately 20% lower than that of the major network carriers. By consistently introducing assigned seating and premium options, Southwest is closing the final gap in its business model without abandoning...
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