Case Study Southwest Airlines 2011
Case Study – Southwest Airlines 2011
By
Dawn Baumann
Advanced Marketing
Professor Nicole Dillett
September 29, 2014
As I develop in mind, body, and spirit, I pledge on my honor that I have not given, received, witnessed nor have knowledge of unauthorized aid on this or any paper.
Dawn Baumann
Background Summary:
Southwest airlines was founded in Texas in 1971 as a small, regional intra-state carrier. They chose to service the Golden Triangle of Houston, Dallas, and San Antonio. By staying within Texan borders, they could avoid federal regulations. They used Boeing 747 planes in their fleet. Since their inception, they have been striving to become the leading low-cost carrier in the United States. They have successfully accomplished this. The company has remained profitable despite the setbacks caused to other airlines in the industry following the 9/1/1 attacks and the recession of 2008/2009. This airline remained afloat during those troubled times, even when many other airlines folded or filed bankruptcy under the economic pressure. In October 1978, President Carter signed the Airline Deregulation Act. Prior to the signing of that act, the Civil Aeronautics Board had regulated airline route entry and exit, passenger fares, mergers and acquisitions, and airline rates of return. The deregulation gave all airlines more power to affect their financial future by allowing them to set their own fares, choose their service areas and acquire other airlines for expansion. After the economic fallout of September 11, eight out of the ten major airlines that controlled the industry in 1978 ended up filing bankruptcy. The three major airlines that survived – Delta, United, and American – controlled over two thirds of the domestic and trans-Atlantic air travel. The terrorists attacks of September 11, 2011brought to light the need to focus on better airline security, and new security measures were implemented to meet this
By
Dawn Baumann
Advanced Marketing
Professor Nicole Dillett
September 29, 2014
As I develop in mind, body, and spirit, I pledge on my honor that I have not given, received, witnessed nor have knowledge of unauthorized aid on this or any paper.
Dawn Baumann
Background Summary:
Southwest airlines was founded in Texas in 1971 as a small, regional intra-state carrier. They chose to service the Golden Triangle of Houston, Dallas, and San Antonio. By staying within Texan borders, they could avoid federal regulations. They used Boeing 747 planes in their fleet. Since their inception, they have been striving to become the leading low-cost carrier in the United States. They have successfully accomplished this. The company has remained profitable despite the setbacks caused to other airlines in the industry following the 9/1/1 attacks and the recession of 2008/2009. This airline remained afloat during those troubled times, even when many other airlines folded or filed bankruptcy under the economic pressure. In October 1978, President Carter signed the Airline Deregulation Act. Prior to the signing of that act, the Civil Aeronautics Board had regulated airline route entry and exit, passenger fares, mergers and acquisitions, and airline rates of return. The deregulation gave all airlines more power to affect their financial future by allowing them to set their own fares, choose their service areas and acquire other airlines for expansion. After the economic fallout of September 11, eight out of the ten major airlines that controlled the industry in 1978 ended up filing bankruptcy. The three major airlines that survived – Delta, United, and American – controlled over two thirds of the domestic and trans-Atlantic air travel. The terrorists attacks of September 11, 2011brought to light the need to focus on better airline security, and new security measures were implemented to meet this
Cited: Peter, J. & Donnelly, J., Marketing Management, New York: McGraw-Hill http://www.slideshare.net/SandeepShilawat/southwest-airlines-case-study-operations-mana... http://www.slideshare.net/cuacua_lovebas/marketing-presentation-southwest-airline?realte... http://www.slideshare.net/thomashaskins10/southwest-airlines-case-team-power-point?rela...