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Low Cost Airlines - Case Study Example
Pages 7 (1757 words)
The economic reforms have always contributed towards the steady growth of any company, but the element of liberalization has broadened the scope of economic activities, and has added further dimensions to it, which are likely to contribute towards the expansion and growth of the economic activities…
based on variance of services, has been the entry in the industry of Low Cost Airlines.
The Southwest airline initially started its operation with short-haul destinations i.e. less than 1,500 km, and at present the company has increased its activities beyond the initial values. It has introduced new airplanes into operations, but initially it was particular number of airplanes which were on continuous run.
The performance of the Southwest airline has been encouraging due to adoption of effective techniques, the company recorded net profit of USD 413 million in 2001, which is lower than in 2000, but the company was the only profitable airline in United States in 2001. Southwest has planned to create more than 4,000 jobs in 2002. The company at retained low unit costs (costs per ASM): 7.66 cents in 2001, against the cost of 7.73 cents in 2000.
The Southwest Company has kept safety as important criteria for the evaluation of its operations, and this is an important aspect of management with reference to Health and Safety, the practice is not widely popular among other low cost airlines, and therefore the Southwest has successful to retain maximum market shares.
According to Carlton, the company has complied by the International and National standards of safety and operations, and has ...