Southwest may buy Frontier Airlines

This is very interesting news. As the Wall St. Journal points out, if the acquisition goes through, Southwest would become an international airline (unless it drops Frontier's routes to Mexico). More importantly, a merger would eliminate yet another player in the domestic airline industry. Frontier has been a low cost leader, frequently launching fare sales that other airlines have to match. Taken to an extreme, as consolidation continues, there may be fewer sales and higher fares.