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It primarily provides short haul, high-frequency, point-to-point, low-fare air transportation service among 58 cities (59 airports) in the United States.
Here are some numbers that will give a brief idea how the company is operating: Net income: $241 million Total passengers carried: 63 million Total RPMs: 45... displayed 300 characters
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There is a 13% insurance raise for the airlines and the government is enforcing fees regarding security problems. The operation cost increases dramatically and there are less people traveling by air. Most of the airliners are losing money expect a few. Southwest is one of those airlines which have remained profitable... displayed next 300 characters
Executive Summary
Incorporated in 1967, Southwest Airlines Co. (Southwest) is a Customer Service Organization that offers air transportation in the United States...
Fourth, the company recognized the potential saturation of its historic markets and the limited number of attractive short-haul markets, so it has expanded into some longer-haul markets...
So, it came up with the idea of a reliable services with frequent departures, short turnarounds time and most importantly, low fares.
(3) What are the key features of Southwest?¦s organization?
a) Architecture
Incentives and compensation policies: There are high level of employee stock ownership and high compensation for employees to provide incentives for Southwest?¦s staff...
For example hedged about 85% of it fuel and oil needs and as a result save about $455 million.
• Provide the good service for customers. The Southwest has win the high customers satisfaction airline...
Industry Analysis
A. Description of Industry and Segments
? Deregulation for 16 years (1978) has resulted in an icnrease of domestic carriers from 36 in 1978 to 100 in 1985...
Accessorily it is also suitable for business passengers who are unsatisfied with congestion at major airports and therefor tend to secondary airports served by the low-cost airlines...
Other airlines are copying Southwest's strategy in order to enter the low-fare, short-haul market. Delta Airlines has built a low-fare regional carrier service and has acquired a minority stake in three regional airlines...