Airline Battle For Competitive Advantage By Giving Customers Incredibly Low Fares At An Irresistible Price
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Airlines battle for competitive advantage by giving customers unbelievably low fares at an irresistible price.
In 1967, Air Southwest was incorporated by Rolling King and Herb Kelleher. There was only $500,000 in the bank and their intentions were to only fly in Texas. After battling legal issues, the Texas Supreme Court ruled in favor of Air Southwest. In 1971, Lamar Muse became president of Air Southwest and changed the name to Southwest Airlines. It was not until June 1971 that Southwest began its service between Dallas, Houston and San Antonio with one way tickets costing $20. Southwest started out with three Boeing 737-200s with Boeing carrying 90% of the financing. The end of 1973, Southwest had…show more content… (News, 2014)
Today, Southwest Airlines is considered the world’s largest low cost carrier. After just over 44 years of service, Southwest Airlines has 665 Boeing 737s and employ more than 46,000 people. Southwest has also expanded outside of Texas, now serving 93 destinations. In 2015, Southwest is looking to expand even further with destinations in Mexico, Costa Rica, and Belize.
In 2014, it had a record $465 million quarterly net income. Most airlines charge the customer for anything and everything extra. Southwest Airlines still maintains its loyalty to the customer by offering low fares and free amenities. It is the only major U.S. carrier that does not charge baggage fees and change fees. Another perk Southwest offers is that there is no assigned seating. Some passengers may look at this as a negative because they may get stuck in seating that is not ideal for them. Also, in 2014, Southwest changed its look and now has a heart emblem on the aircraft as a symbol of its dedication to connect with customers (Southwest, Corporate).
The roots for Delta Airlines were formed by Huff Daland Dusters, which was formed in 1924 as a crop dusting company, in Macon, Georgia. In 1925, Huff Daland Dusters moved its headquarters to Monroe, Louisiana. In 1928, the name was changed to Delta Air service in reference to the