Joyce Young

Southwest Air extractions 2002: An fabrication Under Siege During the months following the terrorist attacks of family line 11, the top management team at Southwest Airlines(SWA) strikingness up dramatical changes in the whole air hose sedulousness and also whatever difficulties coming from the basic principles which had been used success ampley in the medieval thirty years. Although SWAs commercialise assign rose and market value became greater than new-fangled(prenominal) competitors aft(prenominal) a series of important decisions after family line 11, it press release up suffered a differencepoint of the rise of low value competitors, the subsequent restructuring of the air duct industry. Besides, SWA was still struggling to identify which growth strategy should be taken. Should the growth be targeted through an grow interlock or be targeted within the current network? Rise of Low damage Competitors SWA is known as angiotensin-converting enzyme o f the terminal operational cost structures in the domestic airline industry, enabling it to offer the lowest and simplest fares while remaining profitable. The end of 2002, Southwest provided service to 59 airports in 30 states end-to-end the United States (Exhibit 1). This is also the singular positioning, by which SWA differentiated itself from other competitors.

But after September 11, most competitors took the survival determine strategy and offered lower fares, hence making SAWs competitive pricing gain insignificant. The Subsequent Restructuring of The Airline Industry There were many more changes i n the airline operating environment after th! e terrorist attacks of September 11, 2001, such(prenominal) as, government regulations----Congress intended to facilitate SWAs competitors that were in the worsened financial condition. Menawhile some new taxes were established which hit the lowest-fare airline especially hardest. Moreover, every major U.S. air carrier had downsized by laying off workers. However, no employees of SWA had been furloughed. On the other hand, authentic security directives placed SWA at a competitive disadvantage. For example,...If you requisite to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay