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Southwest Airlines Essay examples

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Southwest Airlines

Executive Summary

Southwest Airlines is currently the fourth largest airline in the United States. It flies over 64 million passengers a year, which makes 2,700 passengers a day, traveling to 58 cities. Southwest is the only major carrier to remain profitable in every quarter since 9/11, opposed to many other companies who have declared bankruptcy. It is an influential company that has greatly contributed to the development of the commercial airline industry.

This industry has grown at an average rate of 5% over the past 20 years. Of course several uncontrollable economic and environmental factors, such as the events of September 11th and the current war on Iraq, have caused this …show more content…

The next section investigates Southwest Airlines’ use of information technology. It describes the specific applications of technology through the 12 digital themes of technology, and touches upon how this technology has helped Southwest Airlines become so successful. The final section discusses whether or not Southwest Airlines gained a competitive advantage, and if they are in a stronger or weaker position because of this.

Industry Analysis

The United States carries over one third of the globe’s total traffic, where Over 1.5 billion passengers fly annually. Over the past 20 years, air travel has grown at an average of about 5% per year, the reason for annual change is usually differences in economic growth, and of course other environmental factors, such as the current war. As a rule, the annual growth in air travel has been about twice the annual growth in GDP. Deregulation, liberalization, and competition have essentially altered the management strategies and practices of airlines. Productivity improvements and cost management have been two of the greatest concerns for US airlines for the past twenty years. As a whole, the airline industry must continue to improve their specialization in terms of fleet utilization, pricing and revenue management, and schedule optimization.

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