The Financial Performance of Low-Cost and Full-Service Airlines in Times of Crisis
Bibliographic record
Abstract
This paper examines the stock and accounting performance of three major airlines in the United States in the aftermath of the September 11, 2001, terrorist attacks. September 11 (9/11) resulted in dramatic changes in the airline industry and had significant implications for the economic gains and future prospects of most airlines. Our study focuses on the stock market's perception of the viability of low-cost versus full-service business models in the aftermath of 9/11. We choose Southwest Airlines as a typical low-cost airline and compare its accounting and stock performance to two full-service airlines, Continental and Northwest. We find that Southwest's performance was highly superior to that of Continental and Northwest and argue that Southwest's business model, in the eyes of investors, provides the firm with significantly more financial and operational flexibility than full-service airlines. Southwest's lower operating costs, consumer trust, product offering, corporate structure, workforce and work practices, as well as operational procedures are all factors that appear to contribute to Southwest's relative success. Résumé Cet article étudie la performance boursière et comptable de trois grands transporteurs aériens opérant aux États-Unis au lendemain des attentats du 11 septembre 2001. Ces événements ont entraîné des changements radicaux dans l'industrie du transport aérien et ont eu des répercussions considérables sur les gains économiques de la plupart des compagnies aériennes. Notre étude compare la viabilité des modèles d'entreprise à bas prix à celle des modèles traditionnels, au lendemain de l'attaque terroriste. Nous avons choisi Southwest Airlines comme l'exemple type de transporteur aérien pratiquant des bas prix et nous comparons sa comptabilité et le rendement de son action à ceux de deux transporteurs aériens à service complet, notamment Continental et Northwest. Nous constatons que le rendement de Southwest est de loin supérieur à celui de Continental et de Northwest. Nous montrons que, d'après les investisseurs, le modèle de gestion de Southwest lui donne beaucoup plus de flexibilité financière et opérationnelle que le modèle de gestion pratiqué par les transporteurs aériens traditionnels. La faiblesse de ses charges d'exploitation, la confiance des consommateurs, son offre de produits, sa structure d'organisation, son effectif, ses pratiques de travail, ainsi que ses méthodes opérationnelles sont autant d'éléments qui semblent contribuer au succès relatif de Southwest.
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How this classification was reachedexpand
Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.002 | 0.001 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.002 |
| Science and technology studies | 0.001 | 0.001 |
| Scholarly communication | 0.000 | 0.001 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one teacher head, not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".