Essay on Analysis of Southwest Airlines

Essay on Analysis of Southwest Airlines

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Air transport is a global industry and as such every airline is a likely challenger for every other. It is contrary to expectation that any airline will be able to contest on a large scale without being associated to other carriers. Traffic feed is the industry's lifeblood and stand-alone carriers will be labored to carry low-revenue point-to-point traffic when front with airlines able to offer manifold route alliances. Southwest Airlines is a major carrier to the USA accounting for about 85% of its airfreight tonnage, but it also operates scheduled services to South Africa, Japan and Hong Kong. The subject of strategic alliances inside the air transport industry is not a well-researched area. This is due, in part, to the truth that alliances are a nearly new happening in the industry. The 1990s in specific have seen a commotion of alliance activity of all descriptions. When Southwest Airlines talk about aviation maintenance, they speak of repairs, alterations and the act of preserving an aircraft in its original airworthy condition. An airworthiness certificate is given to an aircraft after countless hours of design, research and testing. And in order to keep this certificate valid; an aircraft must be maintained in accordance with a certain specification. These specifications are brought to them by the Federal Aviation Administration. Southwest Airlines share price is now $3.49, having fallen dramatically from its $6.60 high in 1997. The company has been embarking on cost cutting since 1996, but has lately upped the ante. The most recent results released in February showed a third quarter pre-tax loss of $60 million. This was pretty much as expected with the airline leaking cash as it restructures. The plan is to focus on smal...


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...to avoid congestion at competitors' larger hubs; in Dallas it's the big dog at little Love Field, its birthplace. Its fleet of about 375 aircraft consists only of one type -- the Boeing 737 -- to minimize training and maintenance costs. Because Southwest offers ticketless travel and runs its own reservation system, it sells a significant portion of its seats through its Web site. By sticking to its formula, which also emphasizes customer service and a sense of fun, Southwest has enjoyed years of profitability even during industry downturns. Flamboyant chairman Herb Kelleher, who stepped down as CEO in 2001, has created a highly participative corporate culture: The airline, nearly 85% unionized, has had only one strike. Employees own about 13% of the company.” References Southwest Airlines Co, Overview, http://www.hoovers.com/company/features/0,2960,8_4421,00.html

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Essay on Analysis of Southwest Airlines

- Air transport is a global industry and as such every airline is a likely challenger for every other. It is contrary to expectation that any airline will be able to contest on a large scale without being associated to other carriers. Traffic feed is the industry's lifeblood and stand-alone carriers will be labored to carry low-revenue point-to-point traffic when front with airlines able to offer manifold route alliances. Southwest Airlines is a major carrier to the USA accounting for about 85% of its airfreight tonnage, but it also operates scheduled services to South Africa, Japan and Hong Kong....   [tags: air transport, aviation, airlines]

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