Some large, established airlines also have decided to supplement their regular air service with low-fare, no-frills, low-cost service. Delta Airlines announced late in 1995 that it would launch a low-fare, short-haul airline. Armed with concessions from its pilots’ union that included lower pay, more fliht hours, and more efficient work rules, the airline has a goal of pruning its average seat-mile(ASMs) cost to be competitive with Southwest.
Established airlines that have initiated a head-to-head showdown with Southwest have met with mixed success. Continental Airlines abandoned its Continental Lite entry when it could not finance its half price fare sale long enough to gain a foothold in the market. To counter Continental Lite, Southwest dropped its fares still further an dreplaced its slogan, which was “Just Plane Smart.” The new slogan,“The Low Fare Airline,” leaves little doubt that Southwest knows passengers want low fars.
Some major airlines have not persued the low-cost strategy. Alaska Airlines has positioned itself as maintaining varied services while cutting its fares. Alaska Airline’s marketing campaign aimed at the value-oriented customer uses the slogan. “For the same price, you just get more!”