Southwest Airlines

Topics: Southwest Airlines, Airline, Boeing 737 Pages: 4 (1410 words) Published: February 22, 2010
Southwest Airlines is based in Dallas, Texas and is the fourth largest airliner in the United States. The company was co-founded by Rollin King and Herb Kelleher on March 15, 1967, initially named Air Southwest until changing the name to Southwest Airlines in early 1971. King and Kelleher wanted a low-cost/low-fare airline that would shuttle passengers between Dallas, Houston, and San Antonio, Texas. The company now operates 537 Boeing 737 aircrafts and provides service to 64 cities in 32 states. The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. It primary provides short haul, high-frequency, point-to-point, low-fare air transportation service among the United States. SWOT Analysis:

Southwest Airlines has many strengths. Southwest Airlines is the leader in providing low cost in state flights for its customers. Southwest’s average passenger airfare is only $112.76. It consistently offers frequent flights, inviting cabins, reliable service, and amazing customer service. Since every Southwest airplane is operated by only 71 people, labor costs have decreased. Southwest has the lowest operating cost of any US airline. Southwest Airline’s total revenue of $11.0 billion and net income of $178 million is also a strength. It has $1 billion in cash, and has the strongest balance sheet and credit rating of any US airline. This allows management to quickly borrow an addition $1.1 billion and gives the company a buffer to pay all its bills and absorb any cash drains.

Since Southwest airlines have been the leader in low cost flights for the last 36 years, and have been profitable for 33 years, they use the strategy of purchasing the same airplane for their entire fleet. The Boeing 737 is their airplane of choice; they have chosen to have a single airplane because they only have to have their employees trained...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Southwest Airlines Case Analysis
  • Southwest Airlines Merger Essay
  • Southwest Airlines Case Essay
  • Southwest Airlines vs. Jetblue Research Paper
  • Southwest Airlines Leadership Essay
  • Southwest Airlines Case Essay
  • Essay on An Assessment of Southwest Airlines
  • Southwest Airlines: Organizational Commitment and Communication Paper

Become a StudyMode Member

Sign Up - It's Free