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Southwest Airlines

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Written by:

Boyd O


Date added:

December 9, 2014








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2 / 387


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Some of these financial troubles arise from changes brought upon them from the ever-changing governmental regulations. The most recent change in governmental regulations that will have the largest effect on Southwest Airlines is the change in the federal ticket tax in 1997 on flight routes that are one thousand plus miles...
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This new tax system replaces a percentage tax with a tax that includes a flat segment fee that will cause conflict with the low-fare carriers. This is causing Southwest to make some changes in their strategy, which will cause them to lose some of their cost advantage. Their largest cost advantage over their current rivals is in the flights, which are five hundred miles (59% cost advantage)...
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