Southwest Airlines : The World 's Largest ' Low Cost ' Air Carrier

905 Words Dec 4th, 2015 4 Pages
Southwest Airlines (SWA) is the world’s largest ‘low-cost’ air carrier that is headquartered in Dallas, Texas, and operates more than 3,400 domestic flights on a daily basis. The company provides scheduled airline service to 42 states and Puerto Rico, carrying the most domestic passengers of an airline based in the United States [9]. Founded in 1967, and commencing operations in 1971, Southwest Airlines has always had a unique and breakthrough business model which has allowed the airline to maintain its loyal customer base and profitability [2]. Over the years, Southwest has maintained one of the best customer service records, and its safety record is unmatched in the industry [9]. Overall, Southwest Airlines performance has remained very stable and favorable over the years. In the third quarter of 2013, Southwest earned (net income) $259 million and expects these figures to be even high for fourth quarter, as the airline is anticipating a huge influx of holiday travelers [5]. While maintaining such a high level of profitability, Southwest was also ranked 2nd in customer satisfaction for 2013 by the ACSI (American Customer Satisfaction Index), shadowing only rival low-cost carrier JetBlue. Now you may ask, “how does an airline remain at such a high level of profitability all while maintaining such a high level of customer service in the post-deregulation era airline industry?” There’s only one reason why Southwest has been able to make it out consistently on (or near) the…
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