Southwest Airlines

Southwest Airlines is easily the most successful American airline in history. Until just a few years ago, Southwest Airlines had earned more corporate profits than every other American airline in history. But that doesn't necessarily say very much, no other airline was even in the black.

Southwest has been an industry leader in more than profitability. Southwest's historic fight with competing airlines for space at the Dallas airport is certainly one of the turning points in industry history. Thanks to Southwest's example, discount airlines like JetBlue have entered major markets and driven transportation costs down across the country.

But the other carriers haven't exactly followed Southwest's lead. Without assigned seating, passengers boarding a Southwest flight closely resemble stampeding cattle. And despite efforts to clean up their collective act, the other major carriers can't hope to match Southwest's friendly corporate culture. With friendly snack service and stewards with personality, Southwest gives its customers a number of reasons to keep coming back.

The incessant price wars that have driven most domestic airlines into unprofitability haven't stopped Southwest yet, but increasing foreign competition is changing industry dynamics. Despite intense regulation and government scrutiny, super-efficient, super-subservient Asian airlines are taking up a larger share of the world's air traffic over time. By mid-century, the Asia-Pacific region may take over the title of world's most trafficked airspace, and Southwest doesn't look able to compete.

While Southwest has a corporate history of bucking excessive regulation, the company may join the rest of the American industry in demanding new regulations to keep out superior foreign competition.