The History of Southwest Airlines

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The History of Southwest Airlines

Southwest Airlines (SWA) begins in June 18, 1971, when SWA first operated a first airline consul between Houston, Dallas and San Antonio. Rollin King and Herb Kelleher are the founders of the company. The end of 1971 SWA immediately began to expand.

In 1972 all Houston service is transferred to Houston's Hobby Airport form Houston Intercontinental, that is make more convenient for people to fly. During the first year of operations the customers were the Southwest's first priority. Five years after the first operated a twin-engine the SWA places its sixth Boeing 737 into service while flying over one and a half million satisfied customers to their destinations. Also at the same year SWA gets clearance to begin spreading to Austin, Corpus Christi, El Paso, Lubbock, and Midland/Odessa. Also, SWA carries its five millionth passengers and SWA becomes the public. SWA stock is listed on the New York Stock Exchange. In 1978, Herbert Kelleher comes aboard as permanent President, CEO, and Chairman of the Board for SWA. In 1979, SWA introduced in ten cities to self-ticketing machines in ten cities to make it even faster and more convenient for people to fly.

Year later SWA added its 22nd Boeing 737 to the family and it was the first 737 to be completely owned by SWA. Furthermore, in 1985 SWA take off with new service to St. Louis, Missouri and Chicago. Moreover, in 1988, SWA becomes Sea World of Texas' official airline, later in the year SWA again becomes the official airline of Sea World of California. Also, SWA wins the first Triple Crown, a prize for airline companies that consist for Best On-Time Record, Best Baggage Handling, and Fewest Customer Complaints. A year later, SWA wins the second Triple Crown. In addition, in 1994 for third, 1995 for fourth, and 1996 for fifth annual Triple Crown. In 1997, SWA begins new service to Islip, New York, and Connecticut.

After past twenty-eight busy years SWA is became the fifth largest major airline in the United States. SWA spans over fifty-six airports compare with 1971 only Dallas, Houston and San Antonio. Also, SWA is known in the airlines industry as a quality flight and the most modern fleet. SWA is a service business and it is continuing to improve its services.


Air travel slowing industrywide.


... middle of paper ... issues, that management would probably want to address:

Net Revenue growth - the expansion of the fleet and addition of the destinations addresses it. Changes in financial statements can be assessed by the time company issues its financial data for the years 2000 and 2001.

Current and Long Term liabilities are pressuring company's ratios. Once the expansion completed and the debt shifted from current to long term, ratios will look in the favor of the company.

Return on equity is below its main competitor, Skywest Airlines, due to the comparatively low asset turnover and profit margin.


Although the airline has scaled back its market expansion plans, Southwest thinks it can expend capacity about 15 to 20percent annually. However, in fiercely competitive world of low-fare service, Southwest differentiates itself by the way it plans the future. Herb Kelleher, the CEO, said, "Southwest does not prepare strategic plans in the traditional sense. We do not even do one-year plans. We bump up against some benchmark that requires us to make a major decision we review our strategic definition of the airline and decide whether we depart from it."

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