An examination of how Southwest Airlines manages to compete in the deregulated American airline market.
Written in 2004; 1,012 words; 5 sources; MLA; $ 35.95
Paper Summary:
An overview of the business and marketing strategies of Southwest Airlines in the current market. The paper explains what methods and strategies are needed in order for the airline to be able to compete in the industry.
From the Paper:
"Southwest's strategy of the lowest possible fare and a fun experience has made the airline stand out among its competitors from day one. Key to Southwest's success, however, has been its prowess in keeping its costs low. The airline manages this through consciously adopting a strategy of: operating only shorthaul, high frequency, point-to-point flights; minimum aircraft turn around time; commonality in fleet (Boeing 737s); employee team work; and avoiding congested airports, hub-and-spoke models and interline agreements. By adopting such a strategy, Southwest is able to generate more revenues through flying its aircraft more, lowering unit costs per flight, and operating with reduced number of personnel (Freiberg, 1998, p.48-64). All in all, Southwest's innovative business model has significantly contributed to the advancement of the commercial airline industry by making air travel more affordable and thereby expanding the market. Further, it has also proven that it is possible for an airline to be profitable year after year in an industry, which is known to go through periodic cycles of boom and recession. "
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