Southwest Airlines Essay Example | Topics and Well Written Essays - 1750 words

Southwest Airlines - Essay Example This paper illustrates Southwest Airlines which is considered as low cost airlines demonstrated a stable growth in the airline industry and the average growth in the number of the customers had been approximately 9%. It can be mentioned that there was high competition in the deregulated airline industry since the airline routes were competing among each other and there was rise in the low-cost carriers such as Southwest Air lines. Although it has been almost thirty years of the deregulation, the services provided by the Southwest Airlines has been satisfactory to draw on the passengers with a pleasant experience. In this period of time, a number of airlines have been losing money because of lack of adequate service and certain other reasons. However, the best part to note in this regard is that Southwest Airlines is continuing to earn profits because of its hedging programs. It is worthy of mentioning that Southwest airlines does not adopt the â€Å"hub and spoke† approach. Th e company instead tries to focus upon the short haul as well as point-to-point approach. The takeover of Transtar Airlines by Southwest Airlines in 1994 assisted the company to develop stronger edge in the market place. It can be mentioned that deregulation has allowed the companies to burgeon and has lowered the travelling cost of the air-passengers travel. One of the significant issues that Southwest Airlines faces is related to maintenance of its flights. ... Most of the policy makers had been quite worried with this which triggered the creation of the National Commission. This led to well-built competitive airline industry in the year 1993 (Morrison & Winston, 1996). Southwest Airlines which is considered as low cost airlines demonstrated a stable growth in the airline industry and the average growth in the number of the customers had been approximately 9%. It can be mentioned that there was high competition in the deregulated airline industry since the airline routes were competing among each other and there was rise in the low-cost carriers such as Southwest Air lines (US Government Printing Office, 2003). Although it has been almost thirty years of the deregulation, the services provided by the Southwest Airlines has been satisfactory to draw on the passengers with a pleasant experience. In this period of time, a number of airlines have been losing money because of lack of adequate service and certain other reasons. However, the best part to note in this regard is that Southwest Airlines is continuing to earn profits because of its hedging programs (Mallone, 2008). Business Issues Hub Strategies It is worthy of mentioning that Southwest airlines does not adopt the â€Å"hub and spoke† approach. The company instead tries to focus upon the short haul as well as point-to-point approach. The takeover of Transtar Airlines by Southwest Airlines in 1994 assisted the company to develop stronger edge in the market place. It can be mentioned that deregulation has allowed the companies to burgeon and has lowered the travelling cost of the air-passengers travel. Personnel Issues One of the significant issues that Southwest Airlines faces is related to maintenance of its flights. As