We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Low cost Airlines (Southwest Airlines) - Essay Example

Comments (1) Cite this document
Summary
This report will investigate the factors that have led to the survival and continuing success of Southwest Airlines, including the company’s financial planning, financial control, costing and the company’s efficient decision making process…
Download full paperFile format: .doc, available for editing
Polish This Essay93.8% of users find it useful
Low cost Airlines (Southwest Airlines)
Read TextPreview

Extract of sample
"Low cost Airlines (Southwest Airlines)"

Download file to see previous pages This report will investigate the factors that have led to the survival and continuing success of Southwest Airlines, including the company’s financial planning, financial control, costing and the company’s efficient decision making process.The company has a unique business model of careful financial planning, control, efficient costing and a quick decision making process. Such unique business models have been known to ensure continued success in business organisations (Schein, E. H. 1980). Financial planning Southwest airlines is the only airline in the United States that has been consistently profitable for the past 3 decades, and this is mostly due to proper financial planning by the airline. The company’s financial planning model is a major reason why Southwest Airlines has remained profitable every year since its inception in the 1960s. In order to effectively carry out flight operations, an airline needs pilots, cabin crews planes that can take-off and land on the landing slots, and sales-point coordination. It is quite difficult to make these resources sustainable sources of competitiveness, as they are now much more accessible due to the development of the international markets. (Butler, G.F., and Keller, M.R. 2000). Southwest created an advantage by planning to price their fares at 60 percent below the prevailing air fares in the market. “When Southwest launched its Florida intra-state services in 1996, it offered some advanced purchase fares for as low as $29. Also, when the airline opened a Chicago-to-Cleveland route, its lowest unrestricted one-way fare was as low as $59, while those of other airlines were around $310.” (Doganis R. 2001). With this plan, the airline has been able to divert a substantial number of passengers from the road thus ensuring that the yields achieved are relatively high when measured in terms of revenue per passenger-kilometre because the fares are all point-to-point The airline’s financial success comes from the company’s ability to operate at costs that are lower than the revenue generated by the airline’s operations. Although southwest’s unit revenues are not much lower than those of other competing airlines, operating on the same routes, southwest has enjoyed an advantage in the unit cost, by operating at cost levels that are as much as 40 percent below those of its major competitors. (Doganis R. 2001) Financial control Despite the economic downturn that has been experienced in the United States, Southwest Airlines has remained financially stable and ahead of its competitors in the industry. This is due to an adequate control of the company’s finances, as Southwest Airlines has been able to overcome the economic issues that have affected the airline industry. Southwest is one of the most successful airlines in the United States due to its ability to attract customers based on the exceptional services, low-fares, and the company’s ability to evolve and effect needed changes. “In recent years, the global price of oil has caused many airlines to collapse as airlines were forced to raise ticket prices and lose customers. Airlines were also hurt by low ridership rates.” (Bennett and Craun 1993) Southwest Airlines has been able to maintain financial control by increasing or decreasing the number of flights served per day, as against increasing the coat of travelling for their customers. As a result of this control, the customers reach their destinations on time, and without having to pay higher fares. Since low fares have become the airline’s selling point, decreasing the cost becomes a very important aspect of the company’s financial control. Southwest Airlines also tries to maintain financial control by simplifying its operating process and utilizing strategies like the maintenance of one type of aircraft, not serving meals on flights, using cash-register receipts as tickets, and not using a computer reservation system. Southwest airlines has been known to cuts flights with poor sales and ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Low cost Airlines (Southwest Airlines) Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Low cost Airlines (Southwest Airlines) Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/business/1437659-low-cost-airlines-southwest-airlines
(Low Cost Airlines (Southwest Airlines) Essay Example | Topics and Well Written Essays - 1250 Words)
Low Cost Airlines (Southwest Airlines) Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/business/1437659-low-cost-airlines-southwest-airlines.
“Low Cost Airlines (Southwest Airlines) Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/business/1437659-low-cost-airlines-southwest-airlines.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
ad
adamssusie added comment 3 months ago
Student rated this paper as
I never thought 1250 words essay could be written in such a free manner. I loved the style of this essay. Will definitely use it for my own work!
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Operations Management in Southwest Airlines
Southwest Airlines is one of the largest airlines in United States of America. The success achieved by Southwest Airlines has attracted management gurus all over the world. The operations management of the airline has been seen as a standard for other airlines. The way Southwest Airlines has acquired its wide market just by following its cost leadership approach is simply amazing.
10 Pages(2500 words)Essay
Southwest Airlines
The paper tries to identify the performance of the company before and after the deregulation. It has been noted that the performance of the airline industry has been quite unstable because of deregulation. However, Southwest Airlines has been able to maintain its position because of its innovative strategy of low cost airlines and also due to its commendable service towards the passengers.
7 Pages(1750 words)Essay
Southwest Airlines
This organization provides car rental facilities to its customers and the company has made arrangements for booking the car online. The company also arranges hotel facilities to its customers according to their requirements. Different vocation packages and cruises are other attractive services offered by Southwest Airlines.
3 Pages(750 words)Essay
Southwest Airlines Essay
One American company which has shown remarkable success and instinct for survival is Southwest Airlines (Gittel, 21). Southwest Airlines is an immensely successful airline which has maintained profitability even in extremely tough economic conditions (Freiberg, 25).
4 Pages(1000 words)Essay
Southwest Airlines Strategic Management
The discussion explains about the history of the company along with its organizational values in terms of its mission and vision. Moreover, a SWOT analysis of Southwest Airlines has been performed in the discussion to assess its competitive presence in the global market scenario.
5 Pages(1250 words)Essay
Low Cost Airlines
Although the tragic events that have taken place in the past, and those of recent years have had a major impact on the air transportation industry, low-cost airlines appear relatively immune to the changes and the environmental changes threatening traditional airlines.
7 Pages(1750 words)Essay
Case study-Southwest Airlines
ears ago, the airline has grown to become one of the largest airlines in America today, flying more than 80 million passengers annually to 62 cities across USA more than 3100 times in a day. The success of the airline can be attributed to its organizational strategy and
5 Pages(1250 words)Essay
SOUTHWEST AIRLINES
Major airlines gave up competing with SWA’s low cost service for market share. SWA’s continued expansion has forced the other airlines to bring about a major change in their cost structures by developing new low-cost services in short-haul markets
5 Pages(1250 words)Essay
Southwest airlines Comparative Analysis
(Hoffer, 211) The company success is attributed to its ability to under price its competitors, the company offers low priced tickets and therefore it
6 Pages(1500 words)Essay
Southwest Airlines
Cultivating that desired identity is the Code of Ethics that demarcates/defines the principles of operational conduct and behavioral expectations
5 Pages(1250 words)Essay
Let us find you another Essay on topic Low cost Airlines (Southwest Airlines) for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us