Swot Analysis Of Southwest Airlines

The core value of Southwest Airlines revolves around the belief that in today’s economy more and more people are finding it more difficult to travel at an affordable price. Those individuals who make time to workout do it in a way that may not be suitable. Southwest Airlines believes that everyone needs proper guidance in planning low cost affordable travel that meets their needs.

While Southwest Airlines has increased their global distribution system network in recent years, there are still areas

Southwest Airlines Company is a well-known low-cost American airline that offers excellent customer and employee service. As of 2009 Southwest is the largest airline company in the world that carries the most number of passengers and it is the third largest passenger fleet of aircraft among the world’s commercial airlines. It also boasts the highest number of customers than any other airlines in the United States. This data come from the U.S. Department of transportation’s Bureau of transportation Statistics. Given the above information, Southwest has been posting profits for the past 37 years [3]. The reason why Southwest has been able to cope

A critical analysis of Southwest Airlines with recommendation for future profitability. Today, Southwest is the only major airline that is surviving the economic recession. Prior to the economic recession, Southwest had 36th years of growth and profits in 2008. This all ended when economic recession hit causing Sou

The airline industry is becoming extremely saturated and competitive. Fares are getting lower and new airlines are forming in order to combat the increase in operating costs. In order for Southwest to keep with its competitors, the company must stop relying on just their low prices and customer service. They must differentiate themselves for

Southwest Airlines is one of the most profitable airlines in the airline industry. During turbulent economic times Southwest has managed to continue strong revenue growth in a disastrous environment and has operated profitably for 39 consecutive years (Mintzmyer, 2012). Southwest Airlines has capitalized on the company’s strength of being the top low cost carrier by offering a simple and efficient business plan that prides itself on customer service. Southwest utilizes only the Boeing 737 to streamline their processes, and utilizes their award winning Southwest.com to drive ticket sales. Southwest has begun to capitalize on future market opportunities by purchasing AirTran airways and is now capable of not only

Southwest Airlines was started over 38 years ago as a small Texas airline and has grown to become one of the largest airlines in the United States because it differentiates itself as the most successful low-fare, high frequency, point-to-point carrier. Since 1987 Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passenger boarded. What does Southwest do differently that no one else in airlines does? It keeps things simple and consistent, which drives costs down, maximizes productive assets, and helps manage customer expectations.

According to Wikipedia, an online encyclopedia, Southwest Airlines is currently the third largest airline in the world, measured by the number of passengers carried. Total number of passengers that were carried in the year 2005 amounted to 77.7 million. They are behind American Airlines and Delta Air Lines. After the tragic September 11th incident, Southwest airlines remains as one of the only major airlines that are still profitable. After the September 11th attacks, Southwest Airline's 6 biggest competitors grounded 240 planes and laid off 70,000 people. Southwest kept every single person and plane flying. In fact, they have been so successful, even other airlines have started to copy their practices. One of the biggest reasons

Southwest Airlines is a major passenger airline that provides scheduled air transportation in the United States and near international markets. For the 43rd consecutive year, the Company was profitable, earning $2.2 billion in net income (10K part 1 2015). SW started its service in 1971 with three Boeing 737 and as of 2015 has a total of 704 Boeing aircrafts. The company as of 2015 services 97 destinations in 40 states including seven near continental destinations. SW principally provides point-to-point service rather than the hub-and-spoke service provided by most other airlines. Southwest Airlines is a high-frequency short nonstop hauler; this is its diversification asset in the industry. The key component of its strategy has always been its low-cost structure. Moving forward the PESTEL-Analysis will be engaged to provide illumination into what makes SW a 43 times winner.

Southwest Airlines is a major passenger airline that provides scheduled air transportation in the United States and near international markets. For the 43rd consecutive year, the Company was profitable, earning $2.2 billion in net income (10K part 1 2015). SW started its service in 1971 with three Boeing 737 and as of 2015 has a total of 704 Boeing aircrafts. The company as of 2015 services 97 destinations in 40 states, including seven near continental destinations. SW principally provides a point-to-point service rather than the hub-and-spoke service provided by most other airlines. Southwest Airlines is a high-frequency, short nonstop hauler; this is its diversification asset in the industry. The key component of its strategy has always been its low-cost structure. Moving forward the PESTEL-Analysis will be engaged to provide illumination into what makes SW a 43 times winner.

“Southwest proudly touts its "triple crown" status as the only major airline to top DOT listings for fewest consumer complaints and best on-time performance and baggage handling for a full as year. Southwest also lays claim to the industry's first frequent-flier bonus program, its first profit-sharing plan--through which employees own about 10% of the company--and first senior citizens' discounts (1994).”

Not Southwest. Most of its flying is nonstop between two points. That minimizes the time that planes sit on the ground at crowded, delay-prone hubs and allows the average Southwest aircraft to be in the air for more than an hour longer each day than a similarly sized jet flown by a network carrier. Southwest 's avoid-the-hubs strategy also pays dividends in on-time operations. According to FlightStats, Southwest 's 78 percent on-time performance in June is eight percentage points higher than the industry average and higher than that of any of its major competitors.

As with all airlines, Delta’s recent performance has been significantly impacted by industry shifts and external events. Terrorist attacks and escalating costs have significantly impacted Delta’s profitability in recent history (Rivkin 4). The company has also been losing valuable market share to the low-cost carrier Southwest Airlines throughout the southeast and specifically in the lucrative Florida market (Rivkin 8). JetBlue also began encroaching on key Delta routes, and this seems only likely to increase (Rivkin 9). Despite this, Delta has still performed better than any other legacy carrier (Rivkin 8). Still, recent history has brought several changes to this legacy carrier, and the company has turned its attention towards new competitive strategies.

The airline industry is an enormous industry that has been growing since January 1, 1914 the first day a plane was carrying a paying customer. Southwest Airlines was founded on March 15, 1967 in Dallas, Texas. Since that day Southwest has been growing faster than a newborn baby on formula. Southwest now flies more than 47,000 people, has more than 3,600 flights a day and is flying to 94 destinations through the United States and is in six additional countries. Southwest is very large and stable, it perfectly reflects its entire industry. Although this is going to be mostly about Southwest one will be able to have a good idea as to how the rest of the companies in this industry are affected by some factors.

The complexity of airplanes magnify competition and high fixed costs yield difficulty in forsaking the industry. Nonetheless, brand differentiation of various airlines de-escalate competition. Service differentiation, for instance, is the Philippine Airline's trademark. Allowances for excess baggage and the hospitality of flight attendants are a reflection of the Filipino culture. The intensity of price competition is indisputable among domestic airlines such as Philippine Airlines and Cebu Pacific. The air promos and red eye flights of Cebu Pacific appeal to budget conscious passengers.