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...

Find Another Essay On 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

Southwest Airlines Essay

2708 words - 11 pages -loved commercial airlines in history: 1971 With President Lamar Muse ( retired and seasoned industry leader) at the helm, Southwest Airlines takes off on its maiden voyage and begins service between Dallas, Houston, and San Antonio. America's most unique airline is born. 1972 All Houston service is transferred to Houston's Hobby Airport from Houston Intercontinental. Said Kelleher, "Why should our customers have to drive 45 minutes to take a 40

Southwest Airlines Essay

2180 words - 9 pages 1999 it was 57,500,213, and in 1998 it was 52,586,400. Company Analysis Mission: The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. Southwest Airlines began service on June 18, 1971 with flights to Dallas, San Antonio, and Houston. It is now the fourth largest U.S. airline (in terms of

Southwest Airlines

2974 words - 12 pages localize the problems of the company at the time and in the case of a future expansion, and we will try to give a number of alternative solutions and chose one of them. The Southwest Airlines is a company that has done its first movements in the airline world in 1971 after many efforts for its opening through legal battles with competitors that did not believe that there was any particular reason why the another airline company should exist among all

Southwest Airlines

1373 words - 5 pages Southwest Airlines Herb Kelleher and Rollin King founded the Southwest Airlines Company in 1971. It was serving the Texas Cities of Dallas, Houston and San Antonio.In order to analyze the company and its problems, first we need to get familiar with its internal environments (strengths and weaknesses) and its external environments (opportunities and threats).The company has used from the beginning the same operating style of concentrating on

Southwest Airlines

2390 words - 10 pages Southwest Airlines started up in 1971 by Herb Kelleher and Rollin King. Their goal was to start a low cost airline which focused on short flights usually lee the 500 miles. Southwest Airlines has a fleet size of 477 and flies to 63 different destinations (www.southwest.com, 2006). "Southwest Airlines is based in Dallas, Texas, and is the third largest airline in the world, base on number of passengers carried (www.southwest.com, 2006

Southwest Airlines - 1907 words

1907 words - 8 pages . Airlines experts say that these savings allow each Southwest jet to fly an extra flight per day, which means extra revenue. Herb Kelleher stated the company strategy: “If you are going to be a low-fare airline, you have to charge low fares even where you don’t have competition.” On the other hand close attention to costs produced its competitive advantage of having the nation’s lowest fares, and created a phenomenon in this industry known as

Southwest Airlines - 2034 words

2034 words - 8 pages would want to stay around. When a company has an organizational culture like this the company can work through difficulties and challenges to keep the company on top. Each employee is like a family member and they work together as one.Southwest Airlines has shown the way for many other companies is how it runs its company. The use of OB within Southwest Airlines has helped shape the way to being the leader in the airline industry for over two

Southwest Airlines - 1418 words

1418 words - 6 pages maverick - an alternative to the full-service carriers most passengers fly. Now it sits squarely at the heart of the industry and is leading the fight for survival that airlines have been engaged in since the terrorist attacks of September 11. Southwest has spent three decades - it celebrated its 30th birthday in June - working to be as productive as possible to offer the industry's lowest fares. Its competitors are being forced, in a matter of weeks

Southwest Airlines - 1733 words

1733 words - 7 pages the company. They're Moonies basically. That's the way they operate." Issue: New Competition. Other US airline companies started to imitate Southwest Airlines and created their own low cost carriers (for example: Continental Lite and United's Shuttle). How has Southwest used OB ideas to secure a competitive advantage? In the past when Southwest was unique in its approach to airline service, the company did not really have competitors within

Southwest Airlines - 1897 words

1897 words - 8 pages changes if necessary. As I mentioned before, the four types of control mechanisms that Southwest Airlines uses are management audits, finance control, behavior control, and market control strategy. These controlling mechanisms give the leaderships at Southwest Airlines a look into the day to day operations at the airline (southwest, 2010).Management Audits is when all types of systems within an organization are evaluated to check its effectiveness

Southwest Airlines - 3567 words

3567 words - 14 pages superior customer service, and that this is the major strategy. It is a combination of both.Southwest Airlines appears to be one of the healthiest airline companies, if not the healthiest overall. Southwest has certain financial ratios, which could be used as proof of its outstanding performance in this industry. Southwest's accounts receivable ratio was well ahead of the industry average at 53.36 compared to 11.3. This means that Southwest collected

Similar Essays

Southwest Airlines Essay 3868 Words

3868 words - 15 pages Case Study: Southwest AirlinesIntroductionHistorySouthwest Airlines began service June 18, 1971 with flights to Houston, Dallas, and San Antonio. Southwest has grown to become the fourth largest U.S. airline (in terms of domestic Customers carried). 1998 marked Southwest's 26th consecutive year of profitability. Southwest became a major airline in 1989 when it exceeded the billion-dollar revenue mark. Southwest is the U.S. only major short-haul

Explains Southwest Airlines Positions Itself As A Different Class Of Airline By Having The Most Generous Frequent Flyer Program Of All Major Carriers. How It Uses Luv As A Promotional Tool

756 words - 3 pages and allow the extra convenience for passengers.Southwest uses the word love as a way to express how they treat and feel towards their customers. Southwest has used "Love" as their main promotional tool since the beginning. In a passage, Southwest Airlines - The "LUV Airline," it explains how Southwest took the name. "In the beginning, Southwest Airlines had no money for advertising so we created a personality that would make us unique in the

Southwest Airlines Essay

2383 words - 10 pages Introduction Southwest Airlines was incorporated in Texas and commenced Customer Service on June 18, 1971 with three Boeing 737 aircraft serving three Texas cities-Houston, Dallas, and San Antonio. Today, Southwest operates 537 Boeing 737 aircraft between 68 cities. Southwest topped the monthly domestic originating passenger ranking for the first time in May 2003. Year-ending result for 2009 marked Southwest 37th consecutive year of

Southwest Airlines Essay 2870 Words

2870 words - 11 pages synopsis about this little upstart three-jet airline and how it got off the ground to become one of America's largest and best-loved commercial airlines in history: 1971 With President Lamar Muse ( retired and seasoned industry leader) at the helm, Southwest Airlines takes off on its maiden voyage and begins service between Dallas, Houston, and San Antonio. America's most unique airline is born. 1972 All Houston service is transferred to