Launching the Shuttle by United

This case outlines United's plan to launch a low-cost "airline-within-an-airline" to compete head-to-head with Southwest Airlines in the West Coast corridor. Details regarding United's employee buyout and labor's cooperation with the Shuttle's launch are included. The student is challenged to understand the potential positioning and efficiency advantages of the "airline-within-an-airline" model, and the logic, or lack thereof, of head-to-head competition.