Taking A Look At Southwest Airlines

Southwest Airlines in 2014 was the leader domestic air travel that transported more passengers than other airlines. It had a variety of schedules where customers could choose from, and that service was very convenience for them. Southwest built its reputation very well by becoming the only major air carrier that was constantly profitable. In other words, Southwest’s profit was reported every day since 1973, which was an opportunity to the airline industry. Southwest also became the most important competitive force in the U.S. airline industry. Like any other airline industry, Southwest was rigorously affected by the increase of fuels costs due to terrorist attacks, which was a treat for the airline industry. Southwest needed to take action to resolve this issue and came to the conclusion of lowing cost and point-to-point services, which it would include the reduction of landing fees, aircraft buying costs by flying 737 jets. Since 1973, Southwest began business operating as a regional domestic airline and in 2014 they decided to expand by merging with AirTran. That acquisition allowed them to increase revenue growth by 2%. America was experiencing strong economic growth of 3.9% GDP and 5.9% unemployment rate; this was an

It is worth to mention that Southwest prices were cheapest 40% of the time, which was gain for customers. As customers always search for a way to reduce their travel costs, customers were motivated to travel with Southwest Airlines, and that would result in increasing company revenue. In addition, customers like to be treated good especially when it comes to save some money; Southwest offer bag free of charge, which enriches customer service. Customer satisfaction ratings were significantly high. In general, these factors have facilitated Southwest to get to an industry leading gross margin of 59.17%, which was an opportunity for the airline