Case Study: Southwest Airlines
Southwest Airlines began service June 18, 1971 with flights to Houston, Dallas, and San Antonio. Southwest has grown to manufacture the fourth largest U.S. air lane (in terms of domestic Customers carried). 1998 marked Southwests twenty-sixth 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, low-fare, utmost frequency, point-to-point carrier.
Southwest was conceived in 1967, folklore says it all happened on a napkin. Rollin King, a invitee of Kelleher, then a lawyer had an idea for a low-fare, essential airline to fly between major Texas cities. He doodled a triangle on the napkin, labeled the points Dallas, Houston, and San Antonio, Texas. Kings idea was to offer flights with fares so low, people would choose to fly instead of drive to those destinations. And thus, the storey of Southwest Airlines began.
In the early years, Southwest faced other efficacious battles. Dallas Love bowl, where Southwest began, is close to downtown Dallas, and could not geographically expand at the very time when air calling was increasing. A new major facility, Dallas/Ft. Worth International, replaced it in 1974. only if it was 30 min. from downtown Dallas. Southwest remained at Love theatre with a drawback. Competitors pressured Congress in 1978 to bar flights from Love Field to anywhere outside Texas.
Southwest was able to negotiate a compromise called the Wright Amendment that allowed flights from Love Field to the four states contiguous to Texas. In retrospect the Wright Amendment forced onto Southwest a key grammatical constituent of its later success: the strategy of short flights.
Southwest grew through the 70s and prevail the Texas market by appealing to passengers who valued price and browse departures.
In the 1980s, Southwests annual passenger traffic...
Deep analysis, good recommendation.
The strategy of Southwest looks successful. dispute some issues, such as managerial and ethical issues, result be perfect.
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