Southwest Airlines : The Largest Low Cost Essay

779 Words Oct 31st, 2016 4 Pages
Southwest Airline Background Southwest Airlines is the largest low-cost, commuter airline measured by number of passengers carried each year within the United States. Southwest Airlines is known as a “discount airline” compared with its large rivals. In late 1966, Rollin King, a San Antonio entrepreneur who owned a small commuter air service, came to see Herb Kelleher at the latter’s law office with a plan to start a low-cost, low-fare airline that would shuttle passengers between San-Antonio, Dallas, and Houston. The thought to begin this partnership between Rollin King and Herb Kelleher was founded as a business need to shuttle business people desiring a shorter commute between the three cities than driving across Texas. Southwest Airlines began service on June 18, 1971, (Thompson, Peteraf & Stickland, 2016).
Southwest airline’s first flights were from Love Field in Dallas to Houston and San Antonio, short flights with no-frills service and simple fare structure; fondly called the “Golden Triangle.” The airline started with a very simple strategy: “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people fly your airline” (Srinivasan, 2014). Southwest deserves an “A” for implementing a strategy as a new entrant by filling a niche market, mostly business class patrons who couldn’t take the time to drive across Texas. After becoming profitable in this…

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