Travel buyers hope Southwest's presence in NYC will push down fares

12/9/2008 |

Corporate travel buyers' hopes have been raised that Southwest Airlines' likely debut at LaGuardia Airport will drive down fares in the New York City market. Southwest intends to purchase 14 slots at the airport through a multimillion-dollar acquisition of ATA Airlines, a former code-share partner. Coined by the Transportation Department in a report 15 years ago, the "Southwest Effect" describes the stimulation of demand and decline in fares that generally happens after the discount airline enters a market.

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