Preview

Southwest Airline

Powerful Essays
Open Document
Open Document
3996 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Southwest Airline
Southwest Airlines: SWOT Analysis
Mollika Thaing, Khoa Tran, Tonielia Thomas, Hiwot Tesfaye, Kai Spear
Mgmt. Prin. & Org. Behavior
Professor Leon Prieto
11/18/2013

Southwest Airlines’ Description
Southwest Airlines was introduced in Texas on June 18, 1971 with three Boeing 737 airplanes and only serving three cities of Texas which included Houston, Dallas and San Antonio. The company came a long way since 1971; today Southwest Airlines has 537 Boeing 737 airplanes and serving 68 cities around the US. Southwest Airlines has become a major airline in 1989 when it hit the billion-dollar revenue mark. Southwest Airlines is the United States’ most successful airline due to the low fares, high frequency, and point-to-point carrier. According to the Southwest Airlines Fact Sheet 2010 “Southwest operates more than 3,200 flights a day coast-to-coast, making it the largest U.S. carrier based on domestic passengers’ carrier as of September 30, 2009”. As June 2011, Southwest Airlines has become the top airline to carries the most domestic passengers in the US. Southwest Airlines in 2013 has expanded their destination to 86 cities in 42 states and Puerto Rico.
The current CEO of Southwest Airlines is Gary Kelly and his vision for the company is “to connect people to what important in their lives through friendly, reliable, and low cost air travel”. According to the swamedia.com “Gary is a 27-years Southwest veteran who began his career at Southwest Airlines as Controller, moving up to Chief Financial Officer and Vice President Finance, then Executive Vice President and CFO, before being promoted to CEO and Vice Chairman in July 2004. Gary assumed the roles of Chairman and President in 2008. Prior to joining Southwest Airlines in 1986, Gary was a CPA for Arthur Young & Company in Dallas and Controller for Systems Center, Inc.” Gary has received many awards during his 27 years with the company and twice being named CEO of the year by D CEO



References: Case analysis: Southwest airlines. (2012, may 17). Retrieved from http://netmbastudy.wordpress.com/2012/05/17/case-analysis-southwest-airlines/ Gale Encyclopedia of Small Business

You May Also Find These Documents Helpful

  • Powerful Essays

    CEO Gary Kelly and the employees of Southwest Airlines have fun at work. His skills as an accountant gave him a chance to change how the airline handled the accounting end of business. The corporate culture and core competencies have made Southwest Airlines a front runner in the business.…

    • 1462 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Mkt 500 Assignment 1

    • 1860 Words
    • 8 Pages

    Southwest Airlines was started 45 years ago in 1967 by two entrepreneurs: Herb Keller and Rollin King who had the right vision and culture by which to become successful entrepreneurial leaders. This vision was achieved as Southwest Airlines became the greatest airline in the USA. As a young business in the airlines industry, Southwest Airlines in the initial years confronted very tough situations, and it was due proper planning and with the assistance of its employees that kept Southwest Airlines afloat from sinking. There were already pioneer big companies well established in the airlines industry when Southwest Airlines joined the industry. Some of these companies had a good share of the market and with low over head costs. Such a scenario makes it problematic for a new comer to get a solid footing in the industry. Through these decades, times have been changing and Southwest airline have been changing its waste of operation to keep up with the time. Gould stated, “Core competencies are not constant. They tend to change as the organization changes. Therefore, it’s important that the competencies are flexible and not etched in stone.” (p.5, 2008) The history of the air industry is characterized with very tough competition among companies. Besides, it is even tougher for new companies to enter the industry.…

    • 1860 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Southwest Airlines

    • 474 Words
    • 2 Pages

    Southwest uses an unorthodox leadership style created by Herb Kelleher. The basic idea is that the organization works like an upside down pyramid. The upper management is at the bottom and supports the front line employees, who are the experts. This strategy works for Southwest Airlines because management decisions are made by everyone in the organization, not just the head executives. The company’s emphasis on creativity and innovation bodes well for a company that stresses free will over structure and titles (About Southwest Airlines Co, 2013).…

    • 474 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Southwest Airlines Company (NYSE: LUV) is headquartered in Dallas, Texas. The company began service in 1971. Southwest is unique in the airline industry in that its entire fleet is made up of Boeing 737s. Southwest Airlines reports increase in annual profits; this is the company’s 40th consecutive year of profitability. Southwest Airlines has accomplished so greatly in the year of 2012 by being recognized with numerous awards and recognitions, most notably being named customer service champions by JD Powers, included in the 2012 customer service hall of fame by MSN Money, and named one of America's Top 500 companies by Barrons. Also the company has returned $422 million to Shareholders through repurchasing $400 million of common stock (approximately 46 million shares) and distributing $22 million in dividends. Southwest airlines is carefully designs it image as “the only LOW-FARE, easy to fly, getting its customers…

    • 746 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    What began as a small Texas airline has grown to become the fifth largest airline in the United States. Today, Southwest Airlines flies over 70 million passengers per year to more than 62 cities. Southwest orchestrates over 3,000 flights per day. The Southwest fleet consists of over 436 jets which have an average age of nine years old. Since the Department of Transportation began tracking Customer Satisfaction statistics in 1987,…

    • 2454 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Cost controlling is very important in the airline industry. Southwest is very good at controlling their costs. They offer a no frills service for people who want to get to their destination for as little as possible, and are not concerned about the bells and whistles like in-flight movies. Southwest also realized that when their planes are on the ground, they aren 't making money. They decided to keep their planes in the air as much as possible and have worked hard to keep a low turnaround time. They manage to unload passengers and load new passengers for the next flight within twenty minutes, which is shorter than the industry average. Southwest also uses only one kind of plane, the Boeing 737, in order to reduce costs of parts…

    • 1274 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Southwest Airlines is known for their playful attitudes, from flight attendants, to silly in-flight announcements. Gary Kelly even has a sense of humor, just look at his past Halloween costumes they show the type of person he really is. Southwest is definitely dedicated to its employee’s happiness it shows in the lack of the turnover rate. Employees perform their jobs so much more efficiently and enthusiastically due to a much higher ratio of supervisors to employees, combined with a profit sharing program.…

    • 399 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Southwest Airlines

    • 6862 Words
    • 28 Pages

    Banstetter, Trebor and Recio, Maria. "Southwest accuses American of using ‘scare tactics ' in amendment flight." February 22, 2005 (1-3).…

    • 6862 Words
    • 28 Pages
    Powerful Essays
  • Satisfactory Essays

    Southwest Airlines

    • 517 Words
    • 3 Pages

    - It’s lighter, weighing in at just 3.9 ounces, while the previous model is 4.8 ounces. It is slimmer, at 7.6 millimeters thick instead of 9.3 millimeters.…

    • 517 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    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 Southwest received their first losses during the following quarters: 3rd and 4th quarters in 2008 and 1st quarters in 2009. The 2nd and 3rd quarters in 2009 were profitable, even with fuel hedging taking a bite into the profits.…

    • 2208 Words
    • 8 Pages
    Best Essays
  • Satisfactory Essays

    Labor Law and Unions

    • 534 Words
    • 3 Pages

    According to their website, Southwest Airlines was established in 1967 in Texas, and first three cities Southwest Airlines served are Houston, Dallas, and San Antonio by using three Boeing 737-200s.Today, they serve much more than at that time as 97 destinations in 41 states, When Southwest reached the billion-dollar revenue, it became a major airline in 1989. Southwest Airline, which is serving domestic much more than other airline, is now America’s largest low-fare carrier(Southwest,2013). Southwest Airline is in 500 Fortune Company in 2009. Southwest Airline is the most unionized in the nation. They stated that 87 percent of their employees belong to a union. (Brancatelli, 2008). Southwest Airline provides low-fare with friendly customer service; they also don’t charge first two luggage. These reasons help Southwest became a big competitive in airlines industry.…

    • 534 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    Southwest Airlines Company, an American low-cost airline is the third largest airline in the world as well as the U.S.A. by the number of passenger aircraft among all of the world 's commercial airlines (Arlene Fleming, About.com Guide; www.nationsonline.org), operating more than 540 Boeing 737 aircraft today between 67 cities in the U.S.A. (Southwest Airlines Fact Sheet of 2008). Today, Southwest operates approximately 3,300 flights daily and boasts of being the only major airline to post profits every year for the last thirty six years. It justifiably claims to be the United States’ most successful low-fare, high frequency, point-to-point carrier (www.southwest.com).…

    • 2731 Words
    • 11 Pages
    Best Essays
  • Powerful Essays

    Southwest Airline case study

    • 2348 Words
    • 10 Pages

    For the purpose of this study we shall be taking southwest airline as a case study, Southwest Airline is a major U.S. airline that primarily provides short haul, high frequency, point- to point, low fare service. Southwest was incorporated in Texas and commenced operations on June 18, 1971 with three Boeing 737 aircraft…

    • 2348 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    southwest airlines

    • 489 Words
    • 2 Pages

    Customer service took the place of meals that would be served on short flights. Southwest has a…

    • 489 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Southwest Airlines

    • 724 Words
    • 3 Pages

    Southwest Airlines has long been one of the stand-out performers in the U.S. airline industry. It is famous for its low fares which are often some 30% lower than those of its major rivals. These are balanced by an even lower course structure, enabling it to record superior profitability even in bad years such as 2002, when the industry faced slumping demand in the wake of the September 11 terrorist attacks. Indeed, from 2001 to 2005, quite possibly the worst 4 years in the history of the airline industry, while every other airline industry lost money, Southwest made money every year and earned an ROIC of 5.8%. Even in 2008, an awful year for most airlines, Southwest made a profit and earned an ROIC of 4%.…

    • 724 Words
    • 3 Pages
    Good Essays

Related Topics