Comarison Between Delta and Southwest Airlines
INTRODUCTION
In this assignment I was assigned the task of comparing 2 different airlines, one being a full service carrier and the other being a lost cost carrier, from United States of America, namely the Delta Airlines and South West Airlines. The points of comparison were market strategies, financial benefits, load factors, contrasting yield, revenues and passenger/cargo loads. The analysis was done on the business model and a long term strategy. Through this it would be known that which airline is performing better than the other. The disruption of air travel through various incidents like the terrorist attacks and global downturn, which can be considered as economic, political and social conditions, effect airlines adversely. References like books and online resources were used in finding the information required in how the airlines would perform in the future and how the business model has worked for them over the last few years.
SOUTHWEST AIRLINES [REF#VIII]
Southwest Airlines is the world’s largest low cost American airline. Southwest is the largest airline in terms of passenger load (2009) and fifth largest fleet in the world. Southwest Airlines has carried the most domestic and international passengers than any other US airlines since late August. It has posted a profit consecutively for 37 years. It operates about 3200 flights an year mostly which comprise of short and quick trips to the major airports of the world and operating only a single type of aircraft i.e. B737.
PEST Analysis
Following contains the PESTE analysis of Southwest
Political Conditions Government regulations regarding restrictions on passenger security and fuel have burdened the industry. The government has restrictions on flying older aircrafts and the cost of fuel has created problems for the airlines. Though this restrictions won’t have greater implications on Southwest due to their fuel hedging and constantly maintained aircrafts.
Economic
In this assignment I was assigned the task of comparing 2 different airlines, one being a full service carrier and the other being a lost cost carrier, from United States of America, namely the Delta Airlines and South West Airlines. The points of comparison were market strategies, financial benefits, load factors, contrasting yield, revenues and passenger/cargo loads. The analysis was done on the business model and a long term strategy. Through this it would be known that which airline is performing better than the other. The disruption of air travel through various incidents like the terrorist attacks and global downturn, which can be considered as economic, political and social conditions, effect airlines adversely. References like books and online resources were used in finding the information required in how the airlines would perform in the future and how the business model has worked for them over the last few years.
SOUTHWEST AIRLINES [REF#VIII]
Southwest Airlines is the world’s largest low cost American airline. Southwest is the largest airline in terms of passenger load (2009) and fifth largest fleet in the world. Southwest Airlines has carried the most domestic and international passengers than any other US airlines since late August. It has posted a profit consecutively for 37 years. It operates about 3200 flights an year mostly which comprise of short and quick trips to the major airports of the world and operating only a single type of aircraft i.e. B737.
PEST Analysis
Following contains the PESTE analysis of Southwest
Political Conditions Government regulations regarding restrictions on passenger security and fuel have burdened the industry. The government has restrictions on flying older aircrafts and the cost of fuel has created problems for the airlines. Though this restrictions won’t have greater implications on Southwest due to their fuel hedging and constantly maintained aircrafts.
Economic