The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment‚ most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation‚ the incumbent carriers felt the most pain‚ and the floodgates had opened for newer more nimble carriers with lower cost structures
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| SOUTHWEST AIRLINES‚ INC | CASE STUDY ANALYSIS | COMPARING PAST WITH PRESENT | | 12/14/2010 | STRATEGIC MANAGEMENT (Section F) Course Instructor: Mr. AbdulQadir Molvi Submitted by (Alph. Order): NUTS AND BOLTS Abdul Basit Malik (9045) Hafsa Saleem (8828) Maaz Ismail (7192) Muhammad Faizan Ali (7126) Muhammad Hassan (8780) Saba Muhammad Arif (9313) Sana Tawfik (8609) LETTER OF ACKNOWLEDGEMENT Our instructor MR. ABDUL QADIR MOLVI assigned a report of STRATEGIC MANAGEMENT
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1. In my opinion‚ Southwest should not save low-numbered boarding cards for its most frequent fliers. First of all‚ that would go against the idea of having simplicity in its operations systems. If Southwest reserved their low number boarding cards for its most frequent fliers‚ the airline would run into complications with customer seating preferences or disagreements. This would cause the established simple system of Southwest to be ineffective if certain exceptions would be made for frequent fliers
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Southwest Airlines was started over 38 years ago as a small Texas airline and has grown to become one of the largest airlines in the United States because it differentiates itself as the most successful low-fare‚ high frequency‚ point-to-point carrier. Since 1987 Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passenger boarded. What does Southwest do differently that no one else in airlines does? It keeps things simple and consistent‚ which drives
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Case Study 1 – Southwest Airlines 1. To what do you attribute the success of Southwest Airlines? The success of Southwest Airlines was mainly attributed to their innovative high-volume‚ low-margin business model‚ which included cutting flight prices dramatically‚ using their fleet at maximum capacity‚ and entertaining marketing gimmicks. Southwest’s flight structure took advantage of low-density airports and underserved areas and was comprised of a two-tiered pricing structure that books
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Ecole supérieure libre des sciences commerciales appliquées (ESLSCA) Strategic Management Paper Southwest Airline Strategic Audit Prepared By : Hesham Gamal El Din El Desouky Mohamed Dandash Wael Youssef Professor : Dr. Saneya El Galaly Group : 21-A Table Of Contents I. Executive Summary 5 II. SouthWest Airlines History 6 III. Current Situation 8 III.1. Current Performance 8 III.2. Strategic Posture 13 III.2.1. Mission & Vision 13 III.2.2. Objectives 14
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Operations Southwest Airlines operates as a major passenger airline that provides scheduled air transportation in the United States and near international markets (southwest.com). In addition‚ at December 31‚ 2016‚ South West functioned with a total of 723 Boeing‚ 737 aircraft and 101 destination in 40 states‚ the Commonwealth of Puerto Rico‚ and eight near International countries such as Mexico‚ Jamaica‚ The Bahamas‚ Aruba‚ The Dominican Republic‚ Costa Rica‚ and Cuba (Nasdaq.com). Southwest
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Air Accidents and Investigation Procedures Air Accidents * This is an occurrence associated with the operation of an aircraft where as a result of the operation of an aircraft‚ any person (either inside or outside the aircraft) receives fatal or serious injury or any aircraft receives substantial damage. The occurrence is also not caused by the deliberate action of one or more persons and that leads to damage or injury. Types of Air Accidents * Pilot Errors - either an airplane pilot
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Southwest Airlines Motivational Profile A motivational profile can provide insights into whether a company is doing the right thing or requires improvements. Although nearly every company proclaims its goal is to deliver exceptional service‚ research confirms that the service quality of many corporations is below consumer expectations. Southwest Airlines has created a competitive advantage through valuing employees’ needs as a strategy that motivates them to provide better customer service (Hallowell
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At the onset of the airline industry in the United States‚ major network airlines were the sole providers of air travel. This multifaceted industry was a difficult industry to break into as a consequence of “sophisticated customer segmentation‚ hub-and spoke models and costly information systems for reservations‚ fare wars and intense competition” (Thompson 2008). Shrinkage in airline ticket prices augmented the demand for airline travel. Many markets were simply deserted or over-looked by major
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