Analysis of SouthWest Airlines

Essay by barbieaixUniversity, Bachelor'sA-, August 2006

download word file, 7 pages 3.7


Southwest Airlines began to fly in 1971 with flights to Houston, Dallas, and San Antonio. SWA became a major airline in 1989 when it exceeded the billion-dollar revenue. SWA is now the largest carrier based on scheduled domestic departures. Year end results for 2003 marked Southwest's 31st consecutive year of profitability. SWA is the United States' only major short-haul, low-fare, high-frequency, point-to-point carrier.

But what is hidden behind this very profitable business? What are the impacts of this airline on the market? How did this small airline became one of the most powerful one in USA?

We are going to analyze today Southwest Airlines based on the case study made by Russell W. Teasley and Richard Robinson concerning this Low Cost Airline and the way it is affecting the US Airline market.

Basic Informations

* 3,000 Daily Airline Flights

* 35,000 Employee's

* Serves 60 Cities in 30 Us States

* Fly's 380 Boeing 737 Jets

* Southwest Airline is 10% Employee Owned

* Southwest Airline has been profitable every year

More than 35 years ago, Rollin King and Herb Kelleher decided to start a different kind of airline.

They began with simple concepts:

* Get the passengers to their destinations when they want to get there

* On time with scheduled flight

* At the lowest possible fares,

* Make sure they have a good time doing it

This is how Southwest Airline was born. They always follow their mission "Time flies when you're having fun!"

How does it work?

* Reservations via internet

* Credit card payment is required

* No paper tickets are issued

* Free seating

* Drinks, meals are not included in the price

* Flights are usually from smaller airports

Southwest fly short haul, this means according to the consumer association, Holiday where?,