Southwest Airlines is America’s largest airline headquartered in Dallas, Texas which was traced back in 1967. The airlines are hosting a big number of domestic flights with in United States, and is the biggest revenue earning company.
Strengths
• The unique business policy of the airlines has carved its place as the low cost carrier for consecutive years.
• Almost 3,100 flights are carried per day.
• The diverse fleet of 547 Boeing 737 aircraft is being utilized effectively.
• The company has not providing some of the major services but still claims to produce higher returns than other airlines on the capital investment.
• Highest number of passengers loads on their crafts each day.
• South West Airlines was the first to introduce ticket less traveling and senior discounts.
• Short trips cutting down the frill cost is a reason for its popularity.
• Best crew is offered and the services are very carefully monitored.
• The teamwork and efficiency of the airlines aids the high ticket sales.
• The management of the airlines is up to the mar and efficient in handling the crisis situation (Blanco, Lehman and Shimoda, 2005)
• Consecutive profitability increase till 2009, considered it under the most profitable companies.
• In case of shifting reservation, no cost is either cut or has to be paid additionally.
• Bookings are maximally made through website services
• The company has made the profits by the acquisition of three airlines including Muse Air, Morris Air and ATA Airlines yet and by planning for the acquisition of the fourth one that is AirTran Airways
Weaknesses
• The flights offered are only domestic and no direct flight away from U.S is provided by the Airlines.
• The airlines are not offering the services provided by other air lines like airport lounges, reserved seat assignments, video or audio programming and First Class cabin, and video/audio programming (Dan & Charisse, 2010).
• Seating is not segmented.
• Online booking agencies are not fully approached.
• Labor is highly unionized and different union and associations are made by pilots, technicians and other service providers.
• Morning flights are usually unavailable.
• Airline supervisors are comparatively less.
• It has a single producer as it only uses Boeing 737 as its air craft.
Opportunities
• After acquiring AirTran the company would enter into a new phase of international flights.
• As accessed equally by national and international markets so it can target that.
• It may work on progressive ongoing industrial research and development for producing new technologies and services (David, 2004)
• Longer flights are being introduced.
• Business and leisure travel is being improved and enhanced.
• Mainly it is operating its own booking services but also enhancing the web booking services.
Threats
• The competitors are serving the facilities of web booking for online reservations at their maximum pace.
• The political pressure is forcing the tickets cost to be higher.
• Oil and gas price elevation needs to be pre accessed.
• Air line operating cost is likely to increase.
• Legal obligations are being imposed and the processing of international flights are likely to halter because of insecurities of the competitors.
References
• "Southwest currently operates 547 Boeing 737 jets as of September 30, 2010." (2010). Southwest Airlines Co
• Dan,R. Charisse,J. (2010). "Southwest will buy AirTran in merger of low-cost rivals". Usatoday.com. Retrieved on line from http://www.usatoday.com/money/industries/travel/2010-09-27-southwest-airtran-merger_N.htm.
• David, K. (2004). "Southwest gets new CEO". Deseret News (Salt Lake City).
• Blanco, C. Lehman, J and N. Shimoda (2005). "Airlines Hedging Strategies: The Shareholder Value Perspective". Retrieved from http://www.commodities-now.com/content/market-areas/general/ma-article-8.pdf.