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  • November 2006 (Revised March 2010)
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Two Ways to Fly South: Lan Airlines and Southwest Airlines

By: Ramon Casadesus-Masanell, Tarun Khanna, Jorge Tarzijan and Jordan Mitchell
  • Format:Print
  • | Pages:26
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Abstract

To maximize their effectiveness, color cases should be printed in color. Looks at the different business models of two highly successful and profitable airlines: Chilean-based Lan Airlines and U.S.-based Southwest Airlines. Lan Airlines pursues a hub-to-spoke international full-service model where passenger and cargo operations are highly integrated. Southwest, on the other hand, is set up for a point-to-point, low-fare, "no frill's" service with a homogenous fleet. Designed for a course on the design of business models. Includes color exhibits.

Keywords

Business Model; Service Operations; Competitive Advantage; Air Transportation Industry; United States; Chile

Citation

Casadesus-Masanell, Ramon, Tarun Khanna, Jorge Tarzijan, and Jordan Mitchell. "Two Ways to Fly South: Lan Airlines and Southwest Airlines." Harvard Business School Case 707-414, November 2006. (Revised March 2010.)
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About The Authors

Ramon Casadesus-Masanell

Strategy
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Tarun Khanna

Strategy
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More from the Authors

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    Washio (C): From Growth to Margin

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More from the Authors
  • Is Hybrid Work the Best of Both Worlds? Evidence from a Field Experiment By: Prithwiraj Choudhury, Tarun Khanna, Christos A. Makridis and Kyle Schirmann
  • Washio (D): Shutdown By: Ramon Casadesus-Masanell and Karen Elterman
  • Washio (C): From Growth to Margin By: Ramon Casadesus-Masanell and Karen Elterman
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