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Southwest, Magician Airlines

October 9, 2009

I’ve always wondered how Southwest can offer such cheap fares. Thanks to the LA Times, now I know:

The airline, one of the largest at Los Angeles International Airport, locked in more than 70% of the fuel it expected to consume this year at about $51 a barrel, far below Thursday’s closing crude price of $126.62 a barrel.

The reason that I always wonder about this is because those cheap fares make Southwest greater competition to high-speed rail. As Robert Cruickshank points out at the California High Speed Rail Blog, once Southwest loses those deals high-speed rail will look like a great option to travelers. Once it’s built, of course.

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