Southwest Airlines Strengths Enjoys the Second Highest Market Share at 16. 4% following Delta. [Airline Domestic Market Share, based on Revenue Passenger Miles September September 2013 – August 2014 – Source: Bureau of Transportation Statistics – USA] “Point – to- point strategy’ instead of the conventional hub-and-spoke network system which allows for more direct nonstop routing, and thus enables the carrier to control delays and total trip time.
Faster turnaround time as compared to its counterparts, automated systems and genealogy that streamlines check-in process, usage of plastic boarding cards helps in achieving operational excellence. Low Fare, High Frequency Flights with shorter routes. Employee Engagement programs and best-paid pilots, mechanics and flight attendants in the industry. Flexible work rules and team spirit among its employees. Churning out consistent profits as a low-cost carrier ” even when fuel prices soared Southwest Airlines has an equity to debt ratio of 0. 86, which is higher than the industry average of 0. 2, indicating strong financial strength relative to its peers. Strategic Airline partnerships and the acquisition of Raritan Airways achieves net synergies. It gives access to Atlanta, international service and the addition of landing slots. The Southwest Airlines possess their own fleet of Airlines. It is the world’s largest operator of the fuel efficient Boeing 737. The airline keeps maintenance costs low by using only Boeing sass A Strong brand image in addition to domestic strength as well as presence in key US markets gives it a competitive edge. Positive customer sentiment. Weaknesses Dependency on a single airplane producer.
Challenge of preserving its culture and finding new ways to generate revenue. Southwest Airlines do not scheduling flights to some leisure destinations favored by Americans, such as Canјn, in Mexico, or the Caribbean Islands. Other airlines, particularly Getable, are winning an advantage by building a lucrative franchise in the Caribbean. The airline has been slow to adapt in recent years, by failing to update its reservation software, for instance. Opportunities Prospective expansion into new cities as well as International expansion in the SOOT Southwest Airlines By Mineral-Hangnail