Turnaround at Southwest Airlines Video Case Study Southwest Airlines was started in 1971 by Rollin King and Herb Kelleher. Their idea was simple. If they could take airline passengers where they want to go‚ on time‚ at the lowest possible price; all while having fun doing it‚ then people would love to fly on their airline. As a result of this‚ no other airline in the industry’s history has enjoyed the customer loyalty and extended profitability which Southwest is now famous
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Southwest Airlines Southwest Airlines has long been one of the stand-out performers in the U.S. airline industry. It is famous for its low fares which are often some 30% lower than those of its major rivals. These are balanced by an even lower course structure‚ enabling it to record superior profitability even in bad years such as 2002‚ when the industry faced slumping demand in the wake of the September 11 terrorist attacks. Indeed‚ from 2001 to 2005‚ quite possibly the worst 4 years in the
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This case is just a description of the situation without any details on possible questions or further actions. Southwest Airlines (A) Stanford Graduate School of Business Case Study HR-1A (1995) A Summary This case is about Ann Rhoades‚ vice president of people for Southwest Airlines (LUV). She is preparing for a meeting with the top executives of the airlines to discuss the airline’s competitive position in the light of United’s and Continental’s recent engagement in the low fare market
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This paper evaluates the key financial challenges facing organizations in Risk Management‚ Managing International Acquisitions‚ and Managing Working Capital simulations. Secondly‚ an evaluation of Southwest Airlines (SWA) management of working capital and the optimal financial strategies employed is presented. Also evaluated are the potential improvements in financial performance along with long-term and short-term strategies. Lastly‚ considered in this paper is whether a merger or acquisition
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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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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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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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Strategy Content Issue 1: SWA’s decision to acquire 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
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This is the historic background of an American Airline company called the Southwest Airlines Co. based in Dallas which still exists and operates with great success between 57 cities in 26 states of the US‚ by over 300 airplanes ‚ providing primarily short-haul‚ high frequency‚ point to point‚ low fare service . Through this essay we will see an analysis of the company ’s advantages and disadvantages through a SWOT Analysis. We will try to localize the problems of the company at the time and in the
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research is Southwest airlines. It has been one of the most successful airlines in the US‚ and with very high customer service ratings. This is very impressive to attain by such a small company in a very tough industry. Southwest is able to achieve such levels by having a clear mission of providing low-fare travel using a point-to-point system and not having a hub-based system. The company operates in relatively shorter routes and only maintains one plane type‚ its famous Boing 737. Southwest as an organization
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