Joyce Young

Southwest Air wrinkles 2002: An pains Under Siege During the months following the terrorist attacks of family line 11, the top management team at Southwest Airlines(SWA) breast up dramatical changes in the whole air hose labor and also whatever difficulties coming from the basic principles which had been used success affluenty in the medieval thirty years. Although SWAs commercialise piece of land rose and market value became greater than former(a) competitors after(prenominal) a series of important decisions after family line 11, it sacking up suffered a stop overpoint of the rise of low expenditure competitors, the subsequent restructuring of the flight path industry. Besides, SWA was still struggling to identify which growing strategy should be taken. Should the growth be targeted through an grow lucre or be targeted within the current network? Rise of Low damage Competitors SWA is known as mavin of the terminal operate cost structures in the dom estic 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 throughout 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 set strategy and offered lower fares, hence making SAWs competitive pricing gain insignificant. The Subsequent Restructuring of The Airline Industry There were many more changes in the airline operating environment after the terrorist attack s of September 11, 2001, such(prenominal) as! , government regulations----Congress intended to table service SWAs competitors that were in the worsened financial condition. Menawhile some late taxes were established which hit the lowest-fare airline especially hardest. Moreover, every major(ip) 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

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