Profit Analysis of Southwest Airline
SOUTHWEST AIRLINES
Presented by:
Allan Abutin
Rick Boone
Peter Bond
Bethany Lam
Phuong Nguyen
A. EXECUTIVE SUMMARY
Southwest Airlines has been serving its customers since 1971 and has focused its business on convenience, customer service and low-cost flights. From the outset, the two founders were dedicated to success and the company has taken many steps since then to accomplish this. Through the use of technology, strategic placement of travel routes and keeping the business person in mind, Southwest has continued to succeed even when the economy would project otherwise.
The following information will give you a history of Southwest Airlines and the airline industry, an overview of their business strategy, a financial analysis covering the past four years, a valuation of the company’s stock and a recommendation to purchase the stock.
B. ANALYSIS OVERVIEW
I. Company Background
Southwest Airlines is one of the most well-known and recognized names in the airline industry today. Known for its inexpensive, yet efficient flights, Southwest has set a business model that many airlines attempt to imitate. In 1971, Rollin King and Herb Kelleher joined to create a unique airline company. At the roots, their idea was to provide people with an airline who was the cheapest, got their passengers to their destination on time, and gave good service on the way. That first year, Southwest Airlines began service between San Antonio, Houston, and Dallas. They furthered their great service outside of Texas 1979, when they introduced service from Dallas to New Orleans. As they began to purchase more and more aircraft, Southwest became more popular. This was evidenced by their continued growth to major cities. In 1982 service began in Los Angeles, San Francisco, San Diego, Las Vegas, Phoenix, and Kansas City. 1987 marked the sixth year in a row that Southwest Airlines was the recipient of the Best Consumer Satisfaction Award of any U.S.
Presented by:
Allan Abutin
Rick Boone
Peter Bond
Bethany Lam
Phuong Nguyen
A. EXECUTIVE SUMMARY
Southwest Airlines has been serving its customers since 1971 and has focused its business on convenience, customer service and low-cost flights. From the outset, the two founders were dedicated to success and the company has taken many steps since then to accomplish this. Through the use of technology, strategic placement of travel routes and keeping the business person in mind, Southwest has continued to succeed even when the economy would project otherwise.
The following information will give you a history of Southwest Airlines and the airline industry, an overview of their business strategy, a financial analysis covering the past four years, a valuation of the company’s stock and a recommendation to purchase the stock.
B. ANALYSIS OVERVIEW
I. Company Background
Southwest Airlines is one of the most well-known and recognized names in the airline industry today. Known for its inexpensive, yet efficient flights, Southwest has set a business model that many airlines attempt to imitate. In 1971, Rollin King and Herb Kelleher joined to create a unique airline company. At the roots, their idea was to provide people with an airline who was the cheapest, got their passengers to their destination on time, and gave good service on the way. That first year, Southwest Airlines began service between San Antonio, Houston, and Dallas. They furthered their great service outside of Texas 1979, when they introduced service from Dallas to New Orleans. As they began to purchase more and more aircraft, Southwest became more popular. This was evidenced by their continued growth to major cities. In 1982 service began in Los Angeles, San Francisco, San Diego, Las Vegas, Phoenix, and Kansas City. 1987 marked the sixth year in a row that Southwest Airlines was the recipient of the Best Consumer Satisfaction Award of any U.S.
Bibliography: AND APPENDICES Tripp, Tracy , “Best Practices Case Study: Best Perks, Southwest Airlines,” http://www.vault.com/nr/newsmain.jsp?nr_page=3&ch_id=400&article_id=19258&cat_id=1261