Southwest Airline


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Southwest Airline

  1. 1. Southwest Airlines 9 July 2005
  2. 2. History of Southwest Airlines 1967 กF Herb Kelleher Gary Kelly 1971 Texas F 3 1973 Fก Fก ก F F ก ก 1977 F F F Down Jones (LUV)
  3. 3. History of Southwest Airlines 1979 F ก ก ก Texas 1990 ก F กก F $1 F 1994 ก ก ก Morris Air F ก Ticketless Travel 1996 ก F 2000 ก ก F F 5 2005 ก 31,000 Boeing 429 60 31
  4. 4. Airlines Industry’s Fact with Southwest Airlines F ก “The lowest cost provider in the industry” กF F Fก F ก F ก ก Express way F F F F ก ก F ก F F ก FF ก ก ก F F F ก F F ก F ก ก ก ก F
  5. 5. Southwest Strategies 1. ก ก F F F F 2. ก F ก F 3. ก F ก F F 4. ก F FF F ก
  6. 6. Low Cost Airlines in Industry Domestics Airlines Jet Blue Airways Travelocity Air Tran Airways International Airlines Ryanair - Ireland Easy Jet - UK Virgin Blue Australia Air Asia Malaysia Nok Air - Thailand
  7. 7. Overall US Airlines Performance in 2004 Domestic Passengers Carried Millions 90 80 70 60 50 40 30 20 10 0 l s t d t ta an t ta es es es ay te en el ic W hw w irw ni D er tin th U a ut m A or ic on So A S er N C U m A
  8. 8. Southwest 34-Year Comparison 1971 1999 2004 Size of Fleet 4 306 417 Number of Employees 195 29,005 31,000 Number of passengers carried 108,554 52,600,000 70,900,000 Number of cities served 3 55 59 Number of trips flown 6,051 602,578 1,022,000 Total Operating Revenues 2,133,000 4.2 billion 6.5 billion Net Income (Losses) (3,753,000) 433,400,000 313,000,000
  9. 9. Question 1 At the beginning, what forces in the environment most affected Southwest Airlines, and what opportunity was Southwest founded to take advantage of? ก ก กF ก Southwest F ก F ก ก F F ก F 3 Fก F ก F
  10. 10. Question 1(continue) Opportunity which Southwest founded to take advantage of – Southwest F F ก ก ก F ก F ก ก F ก – Southwest F F F ก ก F ก ก ก ก – Southwest Boeing 737-200 F ก ก Boeing Fก F
  11. 11. Question 2 How would you chart the development of Southwest’s business-level strategy over time? ก F ก F ก ก ก F F F F ก F F F F ก
  12. 12. Question 2 (Continue) Business-level strategy over time ก F Boeing F 737 Fก Fก F ก ก F ก ก ก F ก ก ก F Hub-and-Spoke ก F Point-to-Point F ก F ก F ก F ก F F F ก กก ก F ก ก F ก F
  13. 13. Question 3 What kinds of dynamics characterize competition in the airline industry ก (Security) F (Ticket price) F (Customer satisfaction) F ก (Aircraft Maintenance) F (Air-Traffic Delays)
  14. 14. Question 4 & Question 5 What do you think the future holds for Southwest? If you were the CEO of Southwest Airlines. What would be your action plan in the future? ก Brand Southwest Airlines F ก ก F Vertical Integration Horizontal Integration
  15. 15. Question 4 & Question 5 (continue) ก F ก ก F ก F ก F F ก ก ก ก ก
  16. 16. Thank you very much.