Published at Saturday, April 06th, 2019 - 06:02:23 AM. Type of airline. By Adelbert Scholz.
Airline financing is quite complex since airlines are highly leveraged operations. Not only must they purchase (or lease) new airliner bodies and engines regularly they must make major long-term fleet decisions with the goal of meeting the demands of their markets while producing a fleet that is relatively economical to operate and maintain; comparably Southwest Airlines and their reliance on a single airplane type (the Boeing 737 and derivatives) with the now defunct Eastern Air Lines which operated 17 different aircraft types each with varying pilot engine maintenance and support needs.
Air California and PSA Pacific Southwest Airlines for example operating in the Los Angeles-San Francisco market saw yearly traffic figures increase from 1.5 million passengers in 1960 to 3.2 million in 1965. Texas-based Southwest Airlines similarly provided low-fare service between Dallas and Houston and other Texas points. These airlines demonstrated that true deregulation could yield fares accessible to average-income passengers provide greater airline and service concept choice and stimulate traffic.
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