Southwest Airlines- operation management

Southwest Airlines- operation management

2007 Global company pro

southwest airlines

Southwest Airlines Continuously Opt to Increase Profits with Operational Improvement

Figure 1 Route of Southwest Airlines

Economy condition of a country plays significant role in encouraging businesses to run aggressively . About six years ago when the 9 /11 tragedy happens , immediately it causes declining business in the U .S especially air transportation industry . At that time , we witness that such attack has cost the country 's economy in major reform both operational and fundamental aspects not to mention severe

impact on the air travel industry

The September 11 attack (9 /11 attack ) have significant impact on the continuity of air traveling . This is because such attack has decreased travelers ' trusts to travel with airplanes . Soon after the attack Boeing and Airbus , as the leading manufacturers of airplanes , faced declining demands for new airplanes from airlines

The declining trends in air traveling during 2001 until 2003 reflect a number of economic and social issues . One big factor contributing to this declining trend of air traveling was an increased fear of terrorist attacks . Another factor was global weak economy and the changing in air travelers ' preference to take economy class instead of business class

At present , although it is still early in the recovery process , the increasing fuel prices and phobia of another terrorist attack cause another setback in the air traveling industry . However , current fierce competition in the industry causes unexpected growth in deploying small airplanes such as Boeing 737s or Airbus A320s . This appetite for smaller airplanes underscores the strength of the discount-airline model like one cast successfully by Southwest Airlines . The successful low cost service model is contributed by three factors they are efficiency , low costs and high level of customer value

Concerning the airlines industry , this will discuss about Southwest Airlines . Some issues that this will take into account is accounting systems (balance sheet analysis , steps of improvement of the company 's operation , and recommendation to deal with increasing competition in airlines industry . Prior to the discussion , it will describe the brief explanation on the company 's pro , airline industry characteristics , and low cost carriers

Importance Issues Influence Low Cost Carriers

The difference between an airline on top and at the bottom of the business can be very significant or can be as little as a small bag of extra chips . The airline industry nowadays has become one of the most competitive industries in the world . Technological advancement has become primary weapons of the increasingly easy travel utilities . Some companies are using the internet for an easy access to a ticket some other provides 24 hours satellite TV programs without extra charge (Ferugia

Technology , especially the adoption of information technology , is seen as the future of the business . Besides the development of easier access for customers , Information technology is also important for means of projections . If we are an airline , it is crucial to know the capacity and the diversity of our next year 's...