Finance and Accounting Southwest Airlines - Coursework Example

The US aviation industry is one of the best served in the world with over 100 certified passenger airlines and over eleven million flight departures annually. Southwest Airlines, which is in its 45th year of an administration is a Dallas-based aviation company that keeps on differentiating itself from other air transporters with its praiseworthy Customer Service (Lauer 2010). The airline is served by more than 47,000 Employees, with more than 100 million customers yearly. Southwest works for more than 3,600 flights a day, serving 95 destinations over the United States and six extra nations. Southwest Airlines is the country's biggest transporter that serves domestic travelers. The Company works the most extensive fleet of Boeing aircraft on the planet, most of which are fixed with satellite-based Wi-Fi, enabling customers to connect their devices while traveling.

Factors that influenced financial performance
Southwest Airlines strives to offer its clients a quality customer care experience. This is to enable travelers to feel free to interact with Southwest Airlines staff and seek assistance where necessary. According to Kumar (2008), many customers will refer others and choose to acquire the services of the same provider if they feel that the company involved values them and treats them with respect and dignity. The falling fuel prices also contributed to the increased profitability of Southwest Airlines in the year 2013. Lower fuel prices reduce the costs of operations. Southwest airlines have also adopted a new technology that plays a crucial role in minimizing fuel consumption. According to Vasigh, Taleghani & Jenkins (2012), high aviation fuel costs continue to affect the profitability of companies in the aviation industry. Streamlined designs that diminish fuel-wasting drag, and persistent upgrades in engine configuration decrease fuel utilization and expand proficiency.

Primary assets held by the company
Southwest airline has vast investments in the airline industry. Southwest airlines which also owns Air Tran has a combined fleet of 680 airplanes, most of which are Boeing. The company's engagement with several airport improvement projects also improves its liquidity. Southwest Airlines has established its offices at the Dallas mines field, a premise that is well situated and accessible to its clients. A wide stakeholder stock also provides the airline with sufficient financial resources to operate effectively in the industry. According to Peterson (2002), a company needs to be able to identify its assets and account for them effectively. Southwest Airlines properly indicates and includes these assets in its financial calculations.
How management characterizes the internal control environment of the company
Southwest Airlines' quality corporate administration outer connection gives an important establishment to the Company's operations and procedures. Moreover, the organization endeavors to be a decent corporate body by working with the most important principles of morals and uprightness. Read More