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SOUTHWEST AIRLINES
CASE psychoanalyze I. COMPANY OVERVIEW
southwestward Airlines Co. (Southwest) is a major U.S. airline business 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 serving three Texas cities?Dallas, Houston, and San Antonio. Today Southwest operates nearly 400 Boeing 737 aircraft to 59 U.S. cities. Southwest has the lowest operational cost structure in the domestic airline attention and consistently offers the lowest and simplest fares. Southwest also has one of the scoop up overall customer service records. LUV is Southwests big board symbol, selected to represent the companys home at Dallas sexual love Field, as well as the theme of Southwests employee and customer relationships (Southwest Airlines Investor Relations statement at www.southwest.com. 10/10/04). For fiscal 2003 Southwest Airlines achieved revenues totaling $5,937 million, an increase of 7.5% on 2002 revenues of $5,741 million. The companys business is divided into three distinct areas: Passengers, Freight, and Other, which respectively accounted for 96.7%, 1.6%, and 1.
7% of 2003 revenues (www.datamonitor.com, 10/10/04).
II. CURRENT SITUATION
A. Current Performance Overall, Southwests performance in recent grades has been outstanding. The companys ROI has been steadily increasing, and Southwest has consistently ranked first in market share in 80-90 percent of its top one hundred city-pair routes. Its airline industry market share in 2000 was 9.4%. patronage being in an industry that is characterized by vulnerability to stinting cycles and big swings in bottom-line performance, Southwest has been profitable every year since 1973. It posted a growth rate of 1.0% in 2000, up from .5% in 1999. Operating expenses: Consolidated operating expenses for...If you want to beget a full essay, order it on our website: Orderessay
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