Southwest Airlines was established in 1971 and has become one of the most successful airlines companies in the industry. Employing more than 46,000 employees that operate over 3,800 flight per day in 97 destinations (Owens). An according to swamedia.com site, Southwest Airlines had been “named to FORTUNE 's 2014 list of World 's Most Admired Companies for the 20th consecutive year.” The success of Southwest Airlines can be attributed to their simple operations, resisting trends within the industry, and pioneering new approaches that benefit the customers flight experience.
Despite the size of Southwest Airlines, the organization is able to keep its operations fairly simple which results in affording them the opportunity to be exceedingly efficient. For example, the type of aircraft used, “Its fleet is dominated by a single type of aircraft, the Boeing 737.” (El-Erian). This provides them with only having to train their mechanics and crews in one type of aircraft. Also, they only have to order parts for one type of aircraft. The use of one aircraft cuts down in …show more content…
However, profits for the airlines in North America are the highest, “Net post-tax profits are the highest at $9.2 billion this year.” (Skift), in the world. One of the most obvious economic impacts on the airline industry is the cost of fuel. The rise in oil prices has been felt by the airline industry unparticular the rise in ticket prices. Although most of the fuel cost has been offset to the customer, airlines are still investing in fuel-efficient aircraft which will improve fuel efficiency. Another big investment occurring in the airline industry is the use of more and more technology. For booking to check in to in flight entertainment, technology is becoming more prevalent in the industry. Southwest has added wi-fi and live television streaming to their aircraft in response to the customers need for
Despite the size of Southwest Airlines, the organization is able to keep its operations fairly simple which results in affording them the opportunity to be exceedingly efficient. For example, the type of aircraft used, “Its fleet is dominated by a single type of aircraft, the Boeing 737.” (El-Erian). This provides them with only having to train their mechanics and crews in one type of aircraft. Also, they only have to order parts for one type of aircraft. The use of one aircraft cuts down in …show more content…
However, profits for the airlines in North America are the highest, “Net post-tax profits are the highest at $9.2 billion this year.” (Skift), in the world. One of the most obvious economic impacts on the airline industry is the cost of fuel. The rise in oil prices has been felt by the airline industry unparticular the rise in ticket prices. Although most of the fuel cost has been offset to the customer, airlines are still investing in fuel-efficient aircraft which will improve fuel efficiency. Another big investment occurring in the airline industry is the use of more and more technology. For booking to check in to in flight entertainment, technology is becoming more prevalent in the industry. Southwest has added wi-fi and live television streaming to their aircraft in response to the customers need for