Southwest Airlines (Nyse: Luv) How It All Started: Southwest Airlines (Swa) Begins In June 18, 1971, When Swa First Operated A First Airline Consul Between Houston, Dallas And San Antonio

1103 words - 5 pages

Southwest Airlines (NYSE: LUV)HOW IT ALL STARTED:Southwest Airlines (SWA) begins in June 18, 1971, when SWA first operated a first airline consul between Houston, Dallas and San Antonio. Rollin King and Herb Kelleher are the founders of the company. The end of 1971 SWA immediately began to expand. In 1972 all Houston service is transferred to Houston's Hobby Airport form Houston Intercontinental, that is make more convenient for people to fly. During the first year of operations the customers were the Southwest's first priority. Five years after the first operated a twin-engine the SWA places its sixth Boeing 737 into service while flying over one and a half million satisfied customers to ...view middle of the document...

After past twenty-eight busy years SWA is became the fifth largest major airline in the United States. SWA spans over fifty-six airports compare with 1971 only Dallas, Houston and San Antonio. Also, SWA is known in the airlines industry as a quality flight and the most modern fleet. SWA is a service business and it is continuing to improve its services.INDUSTRY OVERVIEW, TRENDS AND OPPORTUNITIES:Air travel is slowing industry wide. According to Standard & Poors Industry Survey, in 2001, air travel for the industry's major carriers was projected to increase 2.9% to 590 billion revenue passenger miles (RPMs). This is somewhat slower than the projected 3.4% gain for real gross domestic product (GDP) in 2001. In 2002, RPMs would advance 2.5% to 605 billion, while real GDP is seen growing 1.7%. The recently sluggish pace for air travel represents a break from the normal pattern: since 1987, air travel has grown 1.8 times faster than real GDP. Two elements are working against air travel at present. First, the industry is experiencing a cyclical slowdown that has its origins in the Asian financial crisis. Second, the current war on terrorism, fewer first-time travelers is entering the market. The big swing factor for air travel in 2001 and 2002 will be the international market. International travel accounts for some 27% of total Revenues per mile (RPM) and 22% of revenues for the largest U.S. carriers. For the first four months of 2002, international RPMs decreased 2.5% over the year-earlier period. However, as capacity grew 5.8%, the load factor deteriorated to 73.7% from 75.2%. Most of the international weakness is confined to Asia, where traffic is off about 8%. While the economic slowdown that'sunderway may not deteriorate into a recession, it is expected to take its toll on corporate profits. Historically, business travel reflects changes in corporate profits, though sometimes with a lag. In the first quarter of 2002, the Travel Industry Association of America reported that business travel decreased 12.2%. Business travel, which accounts for some 40% of enplanements, could lag overall air travel in the...

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