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SOUTHWEST AIRFARES
Several new airports have opened in major cities, opening the market for new routes (a route refers to a pair of airports), and Southwest has not announced whether it will cover routes to/from these cities. In order to price flights on these routes, a major airline collected information on 638 air routes in the United States. Some factors are known about these new routes: the distance traveled, demographics of the city where the new airport is located, and whether this city is a vacation destiny. Other factors are yet unknown (e.g., the number of passengers that will travel this route). A major unknown factor is whether Southwest or another discount airline will travel on these new routes. Southwest's strategy (point-to-point routes covering only major cities, use of secondary airports, standardized fleet, low fares) has been very different from the model followed by the older and bigger airlines (hub-and-spoke model extending to even smaller cities, presence in primary airports, variety in fleet, pursuit of high-end business travelers). The presence of discount airlines is therefore believed to reduce the fares greatly. The file SouthWest.xlsx contains real data that were collected for the third quarter of a year and also the variable names (both response or dependent and predictor or independent) and definitions
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