Southwest Airlines Essay -- essays research papers fc

I.Current SituationFollowing the deregulation in 1978, a competitive price war ensued among the gloryway diligence as a direct result of the new freedom for airlines to preparation their own fares as well as route entry and exits. This gave cosmetic surgery to the operating structure of the airlines as it exists today, consisting of the point-to-point system and the hub and spoke system. With this came the change of focus for major airlines to non-stop, cross-country routes in densely populated cities, which, in a regulated environment, would be profitable. This resulted in the obvious outcome of increased competition, thusly lowering the average industry prices for non-stop cross country routes which were profitable. This caused operating cost to increase, narrowing the profit margins. During the mid 80s, acquisition led to octette airlines capturing a disproportionate share of domestic traffic. Due to a street corner and increasing fuel prices in the 90s, bankruptcy and collapse were commonplace to many carriers. As a direct result, new airlines were formed, and now ready themselves as low fare, no frill airlines.As a culture, American consumers seem to follow one obvious trend the need and thirst for maximum safety. This trend has seen a rapid rise in the drive out of 9/11, and seems to show no sign of a decline. This can be further observed in the form of advanced airport/airline security measures and regulations. In accordance with this, Southwest has always prided themselves on organism the safest airline in the industry, adapting to the rapidly changing times. This has helped them soar over competition. A. assiduity1. Industry Defined and Total VolumeSouthwest exists and operates within the air travel industry in the United States an industry which has traditionally been establish on a point-to-point career system. However, this industry has been redefined, evolving into a hub-and-spoke system which all airlines have adopted all except S outhwest. Hub-and-spoke flights, called affluent flights, are defined by long-haul, layover flights where consumers stop at a central hub city and can then either continue the flight on the same even, or transfer onto a different plane flown by the same carrier. The point-to-point system, deployed by Southwest, is non-stop flights, called shuttle flights. Th... ...profit while other airlines descend into the red. www.post-gazette.com/pg/05020/445078.stm. January 2, 2005.mars.acent.wnec.edu/achelte/Theresa.htm.Maynard, Micheline. Southwest Losing Its Immunity to Labor Conflicts of airways. The New York Times. July 4, 2002. (C1).Okada, Bryon. Airline Wright law gloss over wrong on long-haul flights. Knight Ridder Tribune News. February 18, 2005. (1-3).Sail the Ocean Blue with the Airline Cast and Crew Customers Can Take a Cruise with their front-runner AIRLINE Characters. PRNewswire, February 14, 2005.Serwer, Andy. Southwest Airlines The hottest Hottest Thing in the Sky. Fortune February 23, 2004.Southwest Airlines Expands day-and-night Flights Between Houston Hobby and Los Angeles International. CNNMoney, February 3, 2005.Southwest Airlines Co. http//www.southwest.com. 2005.Southwest Airlines Sends Hottest Fares Directly to customers Computer Desktops PRNewswire-FirstCall via COMTEX, February 28, 2005. cultivation & Development. Southwest Airlines charts a high-performance flight. Alexandria June 1995. Issue 6. (Vol 49-39).Yahoo Finance. http//finance.yahoo.com/. 2005.