Southwest Airlines Co. was founded in 1967, but its first scheduled flight was delayed until 1971 due to lawsuits from competitors. The company began as a small, regional carrier with three routes. In its initial public offering in June of 1971, the company reported that the funds raised would be used to begin operations and to offer flights from Dallas-Fort Worth's Love Field to Houston and San Antonio.
After the construction of the Dallas-Fort Worth Airport in 1974, Southwest decided to continue flights from Love Field instead of migrating to the new airport like other airlines. Over the years, this decision has allowed the company to virtually gain a monopoly at Love Field due to restrictions placed on the amount of flights and gates there.
Since 1971, Southwest has expanded from serving three cities in Texas to serve 63 cities in 32 states, and now operates over 3,300 flights daily in the United States. In 2006, it was the 300th largest company and sixth largest airline in America by gross annual revenue.
[...] By implementing the recommendations contained in this report, Southwest can grow by increasing its market share among business travelers, optimizing cargo freight operations, and expanding internationally through code-share agreements and new routes. CONCLUSION Southwest Airlines has developed a great business model, which has proved to be successful over the last 30 years. By keeping ticket prices low and constantly improving its efficiency in operations, it has expanded from a small, regional carrier with three routes to the fourth largest airline in the country. [...]
[...] Traditionally, the most attractive airlines for business travelers have been those with the best frequent flyer programs, last minute flight availability, and luxury amenities. Since Southwest already has a frequent flyer program and its last minute flights are often cheaper than similar flights on competing carriers, the company should focus on providing luxury amenities. As mentioned previously, JetBlue's aircraft feature leather seats. Recent surveys indicate that business travelers consider seating to be one of their top determinants in choosing an airline. [...]
[...] BIBLIOGRAPHY Cargo Security: The Airlines Air Transport Association, January 2007, < http:>
[...] Southwest would become the carrier of choice for business travelers if it was one of the first to provide wireless Internet access on its planes. Implementing wireless Internet access would also allow the carrier to develop more non-fare sources of revenue, which would increase total revenues without having to raise ticket prices. On average, Southwest's flights are currently occupied by 30-40% business travelers; however, increasing this number is critical to its continued growth and profitability.[27] By upgrading seats and providing wireless Internet access, Southwest would be able to increase the percentage of business travelers on its flights by 10-20% by 2009. [...]
[...] Passengers are allowed to check three bags weighing fifty pounds each, in addition to two carry-on items.[14] City Pairs Currently, Southwest offers flights to 63 cities in 32 states. The top ten airports serviced by the company, in order of number of daily departures, are shown in Exhibit A to the right. The longest flight Southwest makes daily is 2,510 miles between Philadelphia and Oakland, and the shortest daily flight is 133 miles between Ft. Myers and Orlando.[15] According to recent statements made by the company, Southwest is planning to cut back its 2007-2008 expansion plans in order to maintain or increase profitability and decrease its exposure to risk. [...]
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