Why Southwest can succeed in the airline industry.

SOUTHWEST AIRLINES CASE STUDY May, 2002 ( none we want to turn whats going on now, Feb 2003) Wow! An excited Colleen Barrett, saucy president of Southwest shouted in the meeting with her circumspection team. We oeuvre bucked the money-losing trend that otherwise U.S mail carriers are in and have inform a profit of $21.4 cardinal in the offshoot arse of 2002. Now the circumspection team is reflecting on mo low-down 2002 sequels. At the same time that Southwest chargelines reported this quarter, the nations sestet largest air passages posted hefty losses. (We ingest to gamble in vogue(p) financials) Airline: beginning(a) Quarter 20021st Quarter 20011st Quarter 2000 American Airlines($43 million)$132 million United Airlines($313 million)($99 million) Delta Air Lines($133 million)$172 million US Airways($178 million)($115 million) Northwest Airlines($171 million)$3 million America West($12.8 million)$14.6 million Southwest Airlines profit margin was 9.2% compared to sedulousness 2.3%. We need to find out what it is now. What accounts for this enormous difference between SWA and the other carriers? What management policies and operating procedures does SWA follow that the other carriers do not? Ms. Colleen Barrett is expression to the future. Whats next with all this uncertainty in the airline industry? Ms. Barrett noted an article she was reading about other low-fare carrier JetBlue Airways entering the market.

The new company is modeled later on Southwest. One thing that has helped SWA outperform its competitors is a hedging broadcast it enforced to control rising fuel app eals. In 2000, SWA hedged 80% of their fue! l needs at a cost ground on crude oil at $22 per barrel. When the price of crude oil rose, and continued to rise, SWA was unaffected. As a result of their hedging, SWA paid an average of 78 cents per congius compared to 82 cents per gallon paid by the competition. Airline passenger barter was down 15%... If you want to get a wide essay, order it on our website: BestEssayCheap.com

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