Swot Analysis Of Southwest Airlines Routes

Delta’s Management team is seeking to strengthen the company’s market and financial position by proposing to acquire American Airlines. An assessment of American Airlines business operations, its resources and environment will identify the company’s operational and financial strengths, weaknesses, possible opportunities and threats. This will enable Delta to recognize the best strategy to create the most effective synergy for this acquisition. Evaluating the SWOT analysis on American Airlines is a core requirement and a key step to assessing the feasibility of the acquisition; detecting its operational and financial factors could have a profound effect that can assist Delta in determining the strategic direction that would be advantageous to the company.

An analysis of Southwest Airlines strategic controls has been conducted in order to determine if these controls match, and or enhance, the companies design and strategy. The company structure, culture, and human resources have been taken into consideration. What was found, was that Southwest has a strong culture, which ties most of the strategies together. Supervisors and employees work side by side, which promotes trust and understanding. This analysis concluded that the strategies implemented by Southwest Airlines, does indeed fit the company strategy.

| Weakness * The number of cancelling flights is a little high * The customer service is bad because in some occasion the customer can’t found the delta representative in the airport. * Lack of online presence * In some aircrafts the seats are uncomfortable and narrow

Air Canada was formerly known as Trans-Canada Airlines and was born on the April 10, 1937. It all started with $5 million and three aircrafts; a crop duster and two Electras. The first passenger operations began on September 1, 1937. An Electra, carrying two passengers and mail, flew from Vancouver to Seattle, in 50 minutes. The tickets in 1937 cost about $7.90 one-way and $14.20 return.

Southwest Airlines is a passenger airline company that arranges and provides scheduled flights for passenger and transportation freight services. The company mainly provides, low-fare, point-to-point services all over the US and near-international markets. The headquarters is located in Dallas, Texas and as of December 2014, the company employed over 46,278 people. The company was founded by Rollin King and Herb Kelleher in 1971. Southwest was the first airline to introduce the frequent mile program. This took place in the mid 1980’s. This type of program allowed passengers to add up traveled miles to use later as credit on a future airline ticket. The traveled miles would add up and would also reduce the price of a ticket. Southwest created the idea of senior discount, fun fares and the fun packs. These were perks that attracted people from different age groups. When Southwest originally was incorporated, the idea was to operate in three cities in Texas, but after taking over Morris Air and TranStar in 1987, this gave them a cutting advantage in the airline industry.

On February 29, 1996, WestJet Airlines came to life. They became the face of low-cost, short-haul, point-to-point airline for Western Canada. The organization began when entrepreneur Clive Beddoe, president of Hanover Group of Companies purchased an aircraft for personal use. Beddoe later made his aircraft available to other business people through Morgan Air, owned and operated by Tim Morgan. Tim Morgan, along with Calgary businessmen Don Bell and Mark Hill found an opportunity to start an airline. They all reached out to David Neelman, who was president of Morris Air and asked for assistance on writing the business plan for WestJet. They joined forces and WestJet Airlines came to life. They all

| Weakness * The number of cancelling flights is a little high * The customer service is bad because in some occasion the customer can’t found the delta representative in the airport. * Lack of online presence * In some aircrafts the seats are uncomfortable and narrow

Southwest Airlines uses market development, advertising, and integration strategies at the corporate level. For their market development strategy, they acquired slots in Long Beach, California, and flights resumed between the United States and Cuba. Southwest acted quickly to these opportunities and launched services to Long Beach Airport, Varadero, Cuba, Havana, Cuba; and Santa Clara, Cuba. Now, Southwest serves Long Beach with short-haul flights in California and Cuba from Ft. Lauderdale and Tampa. They also launched service from Los Angeles International Airport to Cancun, Puerto Vallarta, and Los Cabos, Mexico. Additional routes and frequencies within their existing network rounded out the balance of their expansion in 2016.

To formulate a strategy that will help Southwest Airlines maintain its competitive edge in the US airline industry.

After analyzing the financial statements of the four different companies, I have decided to invest my funds in Southwest Airlines Co. (NYSE:LUV). The decision to invest this $10,000 in Southwest Airlines was based on the conclusion that it is a reliable, fast growing company that unlike most airline companies sees a return on your investment. When deciding whether or not to invest in this company each ratio category was taken into account, by comparing & analyzing the 2013 and 2014 fiscal years. The ratios given the most attention include the Total Assets Turnover Ratio, Accounts Receivable Turnover Ratio, Net Profit Margin, Operating Profit Margin, Current Ratio, Quality of Income Ratio, Cash Flow to Capital Expenditures Ratio, and the PE Ratio.

US Airways completed a merger in December 2013 . This merger provided much needed cash infusion into American Airlines, enabling it to emergency from

Southwest Airlines Co. was established in 1967 when it was started with only three Boeing 737 aircraft that serve three largest Texas cities namely Dallas, Houston and San Antonio. In 1989, Southwest Airlines became a major airline when it surpassed the billion dollar revenue mark. Each year, millions of people fly with Southwest Airlines making them the nation’s largest carrier of domestic passengers. With 43 years of exceptional service Southwest Airlines continues to expand and serve 93 destinations in 40 states with more than 3,600 flights a day. This year Southwest launched their international flight service to five nearby countries by Air Tran Airways, a wholly owned subsidiary which was acquired in May 2011.

Southwest Airlines Co is a low-cost airline in the United States. Southwest is the largest airline in the United States by number of domestic passengers carried per year .Southwest, the sixth largest US airline by revenue and it maintains the second largest fleet of airliners of all commercial airlines worldwide. On the July 12, 2008, Southwest operated approximately 3,500 daily flights. Southwest is based in the 2702 Love Field Drive Texas, adjacent to the airport Love Field (Gittell, 2004).

Low-cost carriers pose a serious threat to traditional "full service" airlines, since the high cost structure of full-service carriers prevents them from competing

WestJet have two major problems lead them crash down, which is transfer the files from old reservation system to new system without backing up the data and the second one is did not have enough staff to response customers complained. According to Laudon and Laudon (2014), both JetBlue and WestJet are using the same business strategy which is low cost and good service to achieve the goal. And also both of them are used to a small company. WestJet only have three planes and 40 staffs at the beginning, but now it has about 7800 staffs and 420 flights every day to 71 places among the USA, Canada and Mexico and Caribbean (Laudon & Laudon 2014). In 2010, there was approximately 40% of