Strategic Audit Us Airways vs Southwest Airlines

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Strategic Audit

Southwest Airlines VS US Airways
Megan Kelly
Ashley Ruiz
Molly Tomkins

Strategic Audit
Southwest Airlines I. Current Situation A. Current Performance 1. Record revenue performance led to Southwest’s 40th consecutive year of profitability (best in US Aviation history), in 2012. 2. 2011 net income of $412 million, despite increase in fuel costs. 3. Southwest has achieved record operating revenues of $17.08 billion and operating income of $623 million. 4. Placed first in the industry Customer Satisfaction rating 5. Expanded domestic market share to 25% from 21% within the last year 6. Remained the largest domestic US carrier in terms of
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Do they own significant shares of stock?
Gary Kelly (Chairman of the Board) and Douglas Brooks (Director) are both considered insiders at Southwest Airlines and hold a significant amount of stock shares for the company. The other eight board members, however, do not have any reported stock in the corporation c. Is the stock privately held or publically traded?
Southwest Airline’s stock is publically traded on the New York Stock Exchange. They have both common and preferred shares which both voting rights. d. What do the board members contribute to the corporation in terms of knowledge, skills, background, and connections? Are board members concerned with environment sustainability?
All of the Southwest Airline’s board members contribute significantly to the corporation in terms of knowledge, skills, background, and connections. Every board member has held a top management position in the aviation industry and therefore has the knowledge, skills, and background necessary to make executive decisions regarding the corporation. In addition, each board member has been in the aviation industry for at least twenty years and has connections with multiple executives in the market. The board members of Southwest Airlines are particularly concerned with

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