Chart of the Day: When Southwest Comes Calling, On-Time Performance Goes South


Here’s an interesting, unintuitive tidbit about the airline market. When Southwest enters a market, it forces incumbent carriers to lower their fares. No surprise there. But according to a recent study, it does more than that. It also reduces everyone’s on-time performance:

All three conventional measures of arrival delay indicate that airlines begin responding to the threat of entry before Southwest even threatens the route; incumbents’ on-time performance begins to worsen before Southwest actually enters the second endpoint airport, and it continues to do so following Southwest threatening the route, and following entry, as well.

As the chart on the right shows, average travel time for flights starts to increase sharply about four quarters before Southwest begins service in a new market, eventually rising by two minutes three quarters after service begins. The number of flights more than 15 minutes late rises from 18 percent to about 21 percent. Why? The authors find the same effect when other airlines enter a new market, but only if the new competitor is a low-cost carrier. Their guess? Pretty much what you’d expect: “Incumbents worsen [on-time performance] in an effort to cut costs in order to compete against Southwest’s low costs.”

FOLLOW THE MONEY

Corporations and billionaires don’t fund journalism like ours that exists to shake things up. Instead, support from readers allows Mother Jones to call it like it is without fear, favor, or false equivalence.

And right now, a longtime friend of Mother Jones has pledged an incredibly generous gift to inspire—and double—giving from online readers. That's huge! Because you can see that our fall fundraising drive is well behind the $325,000 we need to raise. So if you agree that in-depth, fiercely independent journalism matters right now, please support our work and help us raise the money it takes to keep Mother Jones charging hard. Your gift, and all online donations up to $94,000 total, will be matched and go twice as far—but only until the November 9 deadline.

$400,000 to go: Please help us pick up the pace!

payment methods

FOLLOW THE MONEY

Corporations and billionaires don’t fund journalism like ours that exists to shake things up. Instead, support from readers allows Mother Jones to call it like it is without fear, favor, or false equivalence.

And right now, a longtime friend of Mother Jones has pledged an incredibly generous gift to inspire—and double—giving from online readers. That's huge! Because you can see that our fall fundraising drive is well behind the $325,000 we need to raise. So if you agree that in-depth, fiercely independent journalism matters right now, please support our work and help us raise the money it takes to keep Mother Jones charging hard. Your gift, and all online donations up $94,000 total, will be matched and go twice as far—but only until the November 9 deadline.

$400,000 to go: Please help us pick up the pace!

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate