Are you suggesting those airlines know nothing about strategy(game theory, etc.)?
SW air wins because it's operating at very low cost compare with others. For example it use low cost hub(use Love field instead of DFW international airport here in Dallas), it purchurse only the same Boeing 737 model so they don't have to support other models. I don't know this but but their pilot salary might be low.
You look at other low fare airlines like jetblue and Airtran, they are doing pretty good. Why? supply-demand, they have more customers relatively. But what if suddenly all airlines became low fare.
a lot of times a business have no choice but keep growing. What would happen if it stop grow? It will be lunch. (have lunch or be lunch)
