Southwest Airlines 2008 Introduction : While the airline industry in the USA has not made thriving financial headlines‚ Southwest Airlines has emerged as a successful organization. It has been able to make profit consistently and has sustained itself through difficult situations like recession‚ energy crisis‚ and September 11 terrorist attacks. Problem Statement : The problem under consideration here is: How can Southwest Airlines achieve a sustainable growth in future in spite of increasing
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AirTran poses many obstacles for SWA’s sales strategy. The acquisition will threaten the pricing structure of SWA. It will give them the opportunity to raise its fair‚ as there is less competition in the Northeast (where AirTran serves) and major airlines have paired off leaving only five major players (Huffington post‚ 2010). Further promoting a fare increase is SWA’s refusal to charge for baggage. Although‚ this is a great sales tactic‚ it provides no source of revenue‚ resulting in a fare increase
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(1) What is the Southwest¡¦s position along the four dimensions? a) Geographic scope Southwest airline provides point-to-point service between midsize cities and secondary airports in large cities. This can help avoiding congestion in large airports and hence save an average 20% of average flight time. b) Choice of business (corporate portfolio) SWA focuses on only airlines services‚ especially the short-haul flights. c) Vertical Integration decision Southwest airline does all of its own ticketing
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Southwest Airlines in 2008 - 2009: Analysis and Recommendations Analysis Performed By: American Consulting Group‚ LLC CEO: Michael A. Evans Table of Contents Letter of Appreciation to Gary Kelly‚ CEO ……………………………...3 Executive Summary ……………………………………………..........4 Appendix 1 ……………………………………………………………….10 Appendix 2 ……………………………………………………………….11 Appendix 3 ……………………………………………………………….12 Appendix 4 ……………………………………………………………….13 Appendix 5 ……………………………………………………………….15 Appendix
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2.1 Strengths 1) Focus on point-to-point service. This service provides more direct nonstop flights that can minimize delays and total trip time. 2) Low operating costs - Use a single type of aircraft (Boeing 737) that makes scheduling‚ operations‚ maintenance‚ and training more simplified. - Outfit the fleet with fuel-saving‚ performance-enhancing blended winglet that extend flight range‚ save fuel‚ and reduce engine maintenance costs and takeoff noise. - Fuel cost saving. Southwest effectively
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Situation Following the Deregulation in 1978‚ a competitive price war ensued among the airline industry as a direct result of the new freedom for airlines to set their own fares as well as route entry and exits. This gave rise to the operating structure of the airlines as it exists today‚ consisting of the point-to-point system and the hub and spoke system. With this came the change of focus for major airlines to non-stop‚ cross-country routes in densely populated cities‚ which‚ in a regulated environment
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1) How does this company make money even when other airlines don’t? What are the most important contributors to its financial success? ANS: - Southwest airlines founded specially to create intrastate between Dallas and Texas and their main agenda is to provide services at low cost as compared to other airlines. Even it’s very competitive to achieve this goal but southwest succeeded by keeping operations simple and consistent‚ cost saving strategy and meet customer expectation(on-time) at low cost
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HESKETT Southwest Airlines 2002: An Industry Under Siege Amid Crippled Rivals‚ Southwest Again Tries To Spread Its Wings; Low-Fare Airline Maintains Service‚ Mulls Expansion In Risky Bid for Traffic — Front Page Headline‚ The Wall Street Journal‚ October 11‚ 2001 The Age of “Wal-Mart” Airlines Crunches the Biggest Carriers; Low-Cost Rivals Win Converts As Business Travelers Seek Alternatives to Lofty Fares — Front Page Headline‚ The Wall Street Journal‚ June 18‚ 2002 Vaunted Southwest Slips In
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Analysis “Southwest Airlines 2008” Valerie Deneen The University of Iowa Case Analysis “Soutwesth Airlines 2008” U.S. Airline Industry Overview Ever since the Wright brothers successfully flown the first airplane in 1903‚ air travel had become one of the most popular means of long distance travel. From 1937 to 1978‚ air transportation was part of public utilities and was regulated by the federal Civil Aeronautics Board in the U.S. Airfares‚ routes‚ schedules‚ and number of airlines‚ were all
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managerial derailment and failure Southwest Airlines strict adherence to its mission to provide the highest quality of customer service delivered with a sense of warmth‚ friendliness‚ individual pride‚ and company spirit is a key factor to the company’s success (About Southwest Airlines Co‚ 2013). The airlines ability to commit to employees to provide them with a stable work environment that ensures equal opportunity for learning and personal growth. Southwest prides itself on allowing all within
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