Professional Documents
Culture Documents
CORPORATION
FITRI ARIANTI
CHARATUNNISA
Factual Summary
- On March 15, 1967, Air Southwest Co. was incorporated in Texas
by Rollin King and Herb Kelleher to provide service within the
state of Texas.
- Southwest Airlines established in 1967, is a low-cost airlines
carrier operating in the United States.
- On June, 1971 Southwest Airlines began customer service using
three Boeing 737 aircraft.
- On May 13, 1972, Southwest sold its fourth aircraft to Frontier
Airlines in order to cover payroll and other expenses.
- Southwest Airlines quickly expanded its service in the late 1970s.
- As Southwest grew steadily in the 1990s, it started to focus on
establishing its corporate culture and public image. On December
20, 1997, Southwest Airlines ranked first on Fortune magazine's
"100 Best Companies to Work for in America" list
- As Southwest continues expanding, including the ongoing
integration of AirTran’s operations, it is important that they
maintain the low cost structure that has made them so successful
historically.
Problem Statement
1. The operating income for 2011 was $693 million, which
was a 29.9 percent decrease versus 2010 .
2. The U.S. airline industry is extremely competitive and
highly volatile. The increasing cost of fuel has been the
primary source of rising costs for the industry, and its
volatility makes hedging often inefficient .
3.Southwest’s rapid growth has proved problematic in
maintaining the reliable service they have always touted .
With the integration of AirTran, Southwest’s network will
grow almost 20%, begging the question of whether this will
further worsen their service.
SWOT
Analysis of Problem
- The primary driver fot these downward trends was higher fuel
costs.