Continental and Southwest Airlines

Paper Summary:

The writer of this paper details Southwest's low-fare no-frills policy, which is just one of the reasons it's the most profitable airline in the U.S. This paper examines why Southwest was rated #1 in on-time arrivals, departures and overall quality despite the fact that flights are usually overcrowded, seats are crammed together and there's no advance seat reservation system. This paper contains a brief history into Southwest and Continental Airlines as well as the initial goals of both companies. This paper details Continental's less than impressive marketing and business achievements as well as the company's past financial struggles to stay afloat, which eventually paid off when it merged with Air Canada.

From the Paper:

"In 1990, December 3 was a dark day when Continental slid into its second bankruptcy, but this time a white knight appeared. Continental and Air Canada became "partners", and Air Canada put some $450 million into rescuing Continental, allowing the airline to emerge from bankruptcy by 1993. Its marketing strategy- again concentrating on the business traveler, both domestically and overseas to more than 60 destinations- has made it possible for Continental to be profitable now for the last 24 reporting quarters. Its stock was named, by Business Week, as the "Best New York Stock Exchange Stock of the year in 1995." (Continental.com) The reason was obvious to see, from a low in January that year of $6.50 a share, by the end of December, the stock had risen to $47.50."

More papers on Continental and Southwest Airlines:

• Business Plan # 50931 : "Southwest Airlines and Income"
• Research Paper # 29037 : "The Success of JetBlue and Southwest Airlines After 9-11"
• Term Paper # 125192 : "Southwest Airlines' Control Mechanisms"

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