priced and distributed, it also promises to greatly enhance load factors (percentage of available seating capacity that is filled with passengers) and profits. Today customers of major airlines can book their ticket via the Internet. Cyberauction sites, such as priceline.com, are greatly enhancing customers' bargaining power. So, Internet can hurt airlines by making travelers too price-sensitive. Ticketless travel is becoming universal in the industry. Southwest went ticketless in 1994. LaborLabor is the industry's largest single expense, accounting for 34% of total costs in 1997. Employment can be divided into six broad craft positions: pilots, engineers, flight attendants, dispatchers, machinists, and clerical workers. Most airline workers belong to one of a dozen major unions. Strikes occur infrequently, because under the Railway Labor Act of 1926 airline contracts don't expire, they just become amendable. RegulationRegulation of domestic airline fares and markets ended with the Airline Deregulation Act of 1978. However, the industry continues to be regulated with regard to safety, labor, operating procedures, and aircraft fitness and emission levels by the Department of Transportation and its affiliated agency, the Federal Aviation Administration (FAA).CompetitorsSouthwest's top three rivals are America West, Delta, and United AirLines. America West Holdings is the holding company for America West Airlines (AWA), one of the top 10 US airlines. AWA serves more than 55 North American destinations, including six in Mexico and one in Canada. Its fleet includes about 110 aircraft, which fly from hubs in Phoenix and Las Vegas and from a mini-hub in Columbus, Ohio. AWA serves additional locations through code-sharing alliances with Continental (which owns a 9% stake in the company) and other airlines, including Northwest and British Airways.Delta Air Lines, the #3 US carrier (behind UAL's United and AMR's American), is expanding its US re...
