In 2011, Southwest Airlines celebrated its 40th anniversary of providing low-fare, high quality commercial air service, in addition to its 39th consecutive year of annual profit, making it the only major carrier in the United States to consistently provide annual profits to its shareholders (Southwest Airlines Annual Report, 2011). Currently Southwest Airlines operates some 600 Boeing 737 aircraft, and provides domestic air service to over 72 cities in 39 states, with over 3400 flights daily.
Case Analysis Southwest Airlines EXECUTIVE SUMMARY Southwest entered the complicated airline industry in Dallas, Texas in 1971 and ever since has been exceeding everyone’s expectations with unprecedented strategies. Southwest focuses on customer satisfaction: get the customer where they want to go, with low fares and have fun doing it. Their low cost strategies have been accomplished by reducing a large majority of the input costs that most large airline carriers incur causing those large airlines to charge heavily for fares. Southwest’s customers know that they won’t be given the same costly luxuries that other airliners carry but they don’t seem to mind much based on Southwest’s continued year after profitable year. In addition, Southwest has received multiple awards in outstanding customer service compared to all other airliners.
Strengths of Southwest Airlines Swot Analysis • Has experienced very fast growth since its inception in 1971. • Offers credit based on the number of trips with the airline instead of the total miles traveled. • Was the first to offer senior discounts, ticketless traveling, and services for air freight delivery. • Carefully considers each applicant so that they are sure to hire the best employees which leads to excellent service for their customers. • Offers reasonably priced travel packages with low frills and excellent customer service.
Introduction Southwest Airlines has an incredible success story for a commercial air carrier. They are the most profitable airline with the highest customer satisfaction rating in their industry (Landes, 2008). This is accomplished by doing things simple and smart; and it all starts with their employees (Southwest refers to them as their “people”). The ‘simple’ is that Southwest typically flies point-to-point destination, low fare, low frill, short haul flights, among 59 cities in the Unites States (Freiberg, 1996). They also only use one type of aircraft (Boeing 737 series), which cuts down on maintenance costs.
“Southwest is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet.” (Southwest Investor Relations: Company Profile). Related Party Transaction Before 2011, Southwest Airlines and AirTran Airways were the two biggest discount airlines, but on May 2, 2011 the two companies merged into one. Both AirTran and Southwest are confident that this merger is best for everyone; for consumers, employees of both companies, and shareholders. Southwest is best known for their low fares and no-fee baggage policy. Many consumers are relieved that they will continue their no-fee baggage policy and
The core concepts of Jet blue lay mainly customer value and product leadership. Jet blue operates under a concept of offering a lower, more affordable option to consumers while not letting the value affect the levels of service. The accessibility of the airline creates an aura of extended service by providing contact to limited locations that traditionally can only be reached with the sacrifice of high fares. In order to make logical profitable, business model Jet blue operates an efficient load factor by maximizing the percentage of aircraft seating capacity. (Jet Blue, 2005).
Allegiant Air realized that Hawaii was an untapped market due to recent airline mergers and bankruptcies. Hawaii is the most prominent U.S. leisure destination that Allegiant can capitalize on along with hotel and car rental packages giving them a bigger piece of the pie. Allegiant Air is a low cost carrier with great customer service; its customers were looking for, a competitive alternative to Allegiants rivals. Introduction Allegiant Air was created in 1997 as WestJet Express in Enterprise, Nevada; Allegiant Air acquired its name and operating certificate in 1998, after a trademark dispute with West Jet Air Center of Rapid City, South Dakota. Its first scheduled service began in October, 1999, connecting Las Vegas and Fresno, California with a Douglas DC-9-21 and DC-9-51 aircraft.
JetBlue Airways IPO Individual Case February 5, 2013 JetBlue Airways, IPO Valuation Statement of problem JetBlue airways are a low cost airline established in July 1999 by David Neeleman. Neeleman, was very experienced in the operations of airlines and start up airlines, having previously started his own small airline company. JetBlue Airways is a new and low-fare airline that promised to “bring humanity” to air travel back in 1999. Their primary goal was provide high-quality customer service for passengers flying in new aircrafts that had leather seating, reliable performance and simple low fares. JetBlue in April 2002 thought that it needed to raise equity by issuing an IPO in order to allow the company to expand.
US Airways Group – Final Simulation American Military University BUSN 310 US Airways Group – Final Simulation US Airways Group is an active member within the airline industry. US Airways Group’s domestic environment is the United States, however, it conducts business in many countries worldwide. Although US Airways Group is listed on the Forbes 500 list of least admired companies; the company has still been capable of generating large revenue. US Airways is least admired in many categories, consisting of: innovation, people management, use of corporate assets, social responsibility, management quality, financial soundness, long-term investment, and product quality. It comes to a surprise that US Airways Group is capable of doing so well despite the low quality of service they seem to provide.
Texas is a large state, air travel is needed for long distance among those big cities. 89% business No exclusive air services for the interstate travelers and the existing carriers acted poorly which made the consumers dissatisfied with them. ➢ Product analysis: The strategy of Southwest Airlines was to satisfy consumer need with the lowest cost. In order to do that, the Southwest Airlines provided intrastate short-haul air service with an average flying time of 45 minutes in a triangular route within Dallas, San Antonio and Houston. They initially adopted 4 Boeing 737 aircraft in a low cost of $16.2 million.