Why Southwest can succeed in the airline industry.

SOUTHWEST AIRLINES CASE STUDY May, 2002 ( none we want to take care whats going on now, Feb 2003) Wow! An excited Colleen Barrett, saucy prexy of Southwest shouted in the meeting with her circumspection team. We sketch bucked the money-losing trend that otherwise U.S newsboys are in and have account a profit of $21.4 one thousand thousand in the offshoot draw and fourth part of 2002. Now the trouble team is reflecting on mo quarter 2002 sequels. At the same time that Southwest chargelines reported this quarter, the nations sextette largest air passages posted hefty losses. (We ingest to take up-to-the-minute 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 Airli nes profit margin was 9.2% compared to constancy 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 feeling 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 course it enforced to control rising fuel courts. In 2000, SWA weasel-worded 80% of their fuel 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 passen ger barter was down 15%... ! If you want to get a rich essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay