The Southwest Airlines Co Case Study

Document Type:Essay

Subject Area:Economics

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S while creating millions of jobs. The industry provides the safest mode of transportation for both passengers and freight services on a daily basis. Also, the aviation industry contributes at the local, national and global levels transporting people and goods around the globe safely and in an economical way. The industry creates and supports new markets both in domestic and foreign regions connecting communities worldwide. One such airline is the Southwest Airlines which is one of the largest companies in air transportation in the U. " Consequently, throughout the 80s and 90s, it continued to expand its services by financing its operations through the issuance of corporate debentures. In the early 2000s, the airline saw the success of the repeal of the Wright Amendment (Hawkins, Misran and Tang, 2012).

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Afterwards, it launched new nonstop routes and services from new airports. As of May 2011, the airline acquired AirTran airlines and had continued to integrate its operations. Supply and Demand Conditions The price of related goods and services have determined the better-operating conditions for Southwest Airlines. In the travel business, consumers often are unappreciated and gouged. This is quite the opposite of the Southwest airlines where their domestic flights have captivated a welcome and comforting culture that makes their domestic sales robust. Despite the emerging trends in video conferencing and discretionary which pose a threat to the travel industry by giving alternatives to expensive business schedules, Southwest service delivery made it possible to gain an increase of 8% in passenger per unit revenue growth.

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