• Los Angeles Times, Wednesday, September 19, 2007 12 PM

Southwest Airlines has grown by bucking the industry for more than three decades. Next year, it's planning to make its boldest move ever: It will begin providing connecting domestic flights to passengers arriving in the U.S. on international airlines.

Facing rising costs, more competition from copycats and the prospect of slower domestic growth, the nation's largest low-cost carrier wants to raise revenues by attracting more passengers per flight rather than hike fares, says CEO Gary Kelly. Eventually, the airline might even fly its own international routes, perhaps first to Mexico and Canada before taking on Asia and Europe, he says.

Later this fall, Kelly says, Southwest may announce several other initiatives, possibly including seating assignments and meals as well as onboard Internet connections--services it has rejected in the past due to cost.

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