Q. From its humble roots, Southwest Airlines has emerged as a major airline in the US In an industry where failure is more common than success; the corporation has achieved steady growth and an impressive performance record. With no reprieve from intense competitive pressure in sight, Southwest needs to find out if its technological innovations, procedural improvements, managed price hikes and acquisition activity are sufficient to overcome looming challenges in the industry.

Illustrate what are the key industry conditions which render profits elusive for airlines?

Does Southwest Airlines have a durable competitive advantage?