This paper discusses Southwest Airlines versus American Airlines. Southwest Airlines is the fifth largest airline in the United States. At present it is operating more than 2,100 flights per day and carrying over 44 million passengers a year to 50 different cities all over the United States. Southwest is very well known for its best on-time record, best baggage handling and has the pride of getting least customer complaints in the airline industry. The airline has won the airline industry's Triple Crown award for Best Airline continuously for five times from 1992-96. The airline is also famous for its innovative discount and convenience packages introduced by it from time to time including the frequent flyer program, fun fares, same-day air freight delivery service etc. It is the only airline in the United States, which is continuously making profits since 1973 and has gained in terms of stock value to a level of about 500% since 1990. Profit margin of the company is the highest in the airline industry.