Southwest Essay Question

920 WordsMay 12, 20114 Pages
Southwest airlines: essay questions Southwest airlines: essay questions QUESTION 1 HOW WOULD YOU CHARACTERIZE THE U.S. AIRLINE INDUSTRY IN THE EARLY 1990’S? I would characterize the U.S. airline industry in the early 1990’s as a steak being trimmed of all its fat, the economic climate created a financial calamity of bankruptcies and collapse by major airlines, which in turn created opportunity for smaller more efficient carriers with cost advantages to enter a near oligopoly industry. The economic distress the airlines industry encountered was spawned from recession and a doubling of fuel prices during the Gulf War in 1991. Fuel, the second largest cost to the industry, an uncontrollable cost that raised havoc on this industry,…show more content…
United attempted to solidify the strategy even further "shuttle by united" coded U2 of replicating many operational features of Southwest Airlines. " lowering operating costs as a higher priority since United's cost for shorter domestic routes ,under 750, miles was 10.5¢ per available seat mile. United's targeted cause her seat that was 7.5 cents for its shuttle operations." (4). Shuttle by united even implemented Boeing 737 jets with a 20 minute air prep turnarounds, while personnel attended enculturalization and motivational classes that emphasized teamwork and customer service. Shuttle by United went as far to match Southwest's flight prices and frequent flier miles. United had a clear intiative that show intial success but when you compete on price things usually backfire at the end, as it did with Shuttle by United with low profit margins causing them to ditch their plans. QUESTION 7 BASED ON YOUR ASSESSMENTS, HOW WOULD YOU INTERPRET UNITED'S DECISION TO (A) DISCONTINUE "SHUTTLE BY UNITED" SERVICE FOR THE OAKLAND-ONTARIO MARKET AND (B) RAISE THE ONE-WAY WALK-UP FIRST CLASS AND COACH FARE ON ALL 14 "SHUTTLE BY UNITED" ROUTES BY $10.00? My assessments on United's decision to discontinue "Shuttle By United" for Oakland -Ontario is that United realized they couldn't compete on price with Southwest and ditched their efforts,

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