As of March 2018, Southwest Airlines has scheduled services to 100 destinations in the United States and ten additional countries Q1: why has Southwest’s business model and strategies changed over time?despite the highly challenging business environment facing the airline industry (i.e., hyper-competitive, highly leveraged, capital intensive, labor intensive and subject to oil prices volatility), Southwest Airline is still the most profitable company in the industry over the last 50 years. There are many distinctive strategies employed by the company, which in turn contribute to the formation of competitive advantage of the firm. In this section, these strategies will be discussed. Cost leadership Business Model The business model of Southwest Airline is to deliver the most basic service and safety quality standards to the consumers, with the lowest costs possible. the company has been continuously enhancing its ability to send the customers to the destination safely, on time, efficiently, and conveniently (in terms of baggage handling, ticketing, and check-in processes).