Southwest Airlines

Paper Summary:

Discusses demand in the airline industry. Two types of passengers: the business traveler (immediate needs) & the leisure traveler (long-range plans). Impact of the early 2001 turndown in air traffic & rising fuel costs, and effect of 9/11. Demand variables for Southwest. Performance. Financial controls & profits. Marketing. Government bail-outs.

From the Paper:

"Demand; Southwest Airlines and the Airline Industry
Overview:


Demand in the airline industry is based on two types of passenger/customers: the business traveler, whose last minute arrangements require full fare and earn the most profit for the airlines; and the leisure traveler who- with family or alone- can make plans well ahead of time and therefore can arrange for the most economical prices. As long as the economy in the U.S. was rising, and business was good and discretionary income was high, the airlines were doing good business. In other words, the basic demands controlling the airline industry were the immediate needs of business travelers and long-range plans for vacationers.


But, after several years of a booming economy, when the airline..."

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