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A Study On Southwest Airlines. Essay

1354 words - 5 pages

Business description and history. Write a description to include the origin of the chosen business, its primary products and services, and a history of its growth and development.Southwest Airlines is a major domestic airline that provides primarily short-haul, high-frequency, point-to-point, low-fare service. Southwest was incorporated in Texas andcommenced Customer Service on 18 Jun 1971 with three Boeing 737 aircraft servingthree Texas cities - Dallas, Houston, and San Antonio. Today Southwest operates over350 Boeing 737 aircraft in 58 cities. Southwest has the lowest operating cost structure inthe domestic airline industry and consistently offers the lowest and simplest fares.Southwest also has one of the best overall Customer Service records. LUV is the stockexchange symbol, selected to represent the home at Dallas Love Field, as well as thetheme of the Employee and Customer relationships. A most recent event with thecompany is the opening of more terminals at Chicago O'Hara airport. They currentlytravel all over the United States with HUB's in Phoenix, Baltimore, Houston, Seattle, andanywhere their in between as the company puts it. They currently run over 2,700 non-stop flights daily. While looking at the stock growth of the company, it has shown acontinual growth since 1997, using the financial information available. Since 1977, theyhave split stock's fourteen times, with the most recent occurring in 2001. Anotherprogram that is very popular amongst frequent flyers is the Rapid Rewards Programwhich allows members who earn 100 credits to receive a companion pass which allowsone person of the member's choice to fly free for one year. Southwest Airlines is a growingcompany, and is definitely heading in the right direction.Environmental Analysis. Explain both internal and external environmental considerations pertinent to the decision making processes of the company.Southwestern Airlines has many considerations to consider when dealing with theenvironmental considerations. The first of which is crude oil prices. With the mostrecent demand and price increases for crude oil, this increases the price of jet fuelprices per gallon. A few questions the company must answer is "Do we increase theprice of tickets"? Secondly, "Do we cut flights that are not filling the amount ofpassengers to make it profitable"? Southwest has not done either of the above tocontinue with the same quality service they give the customers. Next, we need tolook at how the company deals with flight patterns when thunderstorms are in thearea of the flight. Southwest Airlines has a very good policy for this as reported inAir Safety Week article. The magazine reports that the companies policy is "The firstPerhaps the most specific thunderstorm avoidance policy is the one used bySouthwest Airlines [LUV]. As at American Airlines, Southwest pilots train to theprecipitation reflectivity that is presented on their airborne weather radar, and theSouthwest guidance is based on these...

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