Sensitive to changes in economic conditions.(LUV) 10K report| sec.com Risk Management Modeling from FY 2012 – FY 2021 10-K Filing This competitive advantage is reflected in Southwest having the best recent gross profit margin of the entire group.Ĭompetitive advantage of Southwest Airline Airline Southwest’s domestic operating expenses per available seat-mile, excluding fuel, are lower than legacy and low-cost carriers, only the ultra-low-cost carriers have even lower costs per seat-mile.Southwest’s business model and point-to-point network provide unit cost advantages compared with the majority of the domestic airline industry. The company has 22% of total domestic market share and is the market leader in 23 of the top 50 U.S. In some cases, the airports within a metro area may serve separate markets. Southwest is among the market leaders in the top 50 US metro areas around cities that include multiple major airports. Southwest has a large number of competitors, including legacy carriers such as Delta Air Lines, American Airlines, and United Airlines low-cost carriers like JetBlue, Alaska, and Virgin America and ultra-low-cost carriers such as Spirit, Frontier, and Allegiant.īy revenue, the larger, hub-spoke players occupy first and second position, but Southwest is the largest low-cost carrier by market share. Given the fact that the tourism resorts in Central America are still heavily covered by US airlines, and international services still weigh relatively small, Southwest’s major competitors are US air carriers. Southwest is a US domestic focused airline company, despite its expansion to Central America, the majority of its services still lie within the US. Returning value to its Shareholders - More than $12.9 billion through 2010 to 202.Never reported an unprofitable year until 2019 - 47 years of consecutive profit.More than one role - Negotiated with union to perform more than one job function.Smaller markets and airports - Chicago Midway instead of O’Hare, low fees and time.No frills policy - Cut extra service cost.Short distance point to point operation network - Time, Distance, and Operating deduction.Flys only Boeing 737 - Maintenance cost (Inventory and Employees). Brand with Authenticity - Most intimate brand, more human and approachable, crisis management.Brand with personality - Employees be themselves, feel like playing, humor marketing, LOGO and stock code LUV.Target population expansion - Families, Young Travelers, Business, Frequent Flyers, Holiday Makers.Price less and reward more - Affordability and rapid reward plans.Make flying easier - Less stress flying experience (Policies and No Third Party Procedure).He had received an M.B.A from Harvard University and was working as an investment consultant. King graduated from Case Western Reserve University in 1955. Kelleher earned a bachelor’s degree from Wesleyan University where he was an Olin Scholar and where his major was English and his minor Philosophy. The airline was established on March 15, 1967, by Herb Kelleher and Rollin King as Air Southwest Co. Southwest Airlines’ purpose is to connect people to what’s important in their lives through friendly, reliable, and low-cost air travel. 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 is the world’s largest low-cost carrier it offers some extremely low fares with the addition of standard perks like free checked bags, inflight refreshments, and award winning customer service. and adopted its current name, Southwest Airlines Co., in 1971. It is headquartered in Dallas, Texas, and has scheduled service to 121 destinations in the United States and 10 additional countries. Southwest Airlines Company is a one of the major US airlines and the world’s largest low-cost carrier.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |