Fla. From 1971, when it started with three planes serving Texas, to its current nationwide operation with more than 330 planes, Southwest has made only two minor acquisitions, with mixed results. Southwest officials say they might be interested in buying pieces of other carriers if the Justice Department requires United or American to sell some assets as they split up US Airways. Such assets most likely would include gates or takeoff and landing slots, analysts said. Southwest executives say, at least publicly, that because of their cost-cutting prowess, they can compete even if the rest of the industry consolidates. We can make money charging low fares, and they can't.
Size is an advantage.
Both are longtime Southwest executives and Kelleher confidants. Company directors never even interviewed an outside candidate for either job, said Kelleher, who will remain chairman of the board under a new three-year contract. Analysts say investors were relieved that the question of Kelleher's successor finally had been settled and that an insider was chosen.