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Southwest Airline has been one of the companies with highest growth rate for the last more than forty years since it was found (Bundgaard, Bejjani & Helmer, 2006). This has been due to its ability to sustain growth and maintain profitability despite the challenges of the aviation industry and has resulted mainly due to increase in the demand of its low price structures and high quality services. According to Keller (2010), it is always the objective of this company to meet the customer demand. Since the customer demand has been increasing, Southwest airline has been forced to increase its number of flights and to even acquire other Airline companies. One recent acquisition is acquiring of Air Tran Holding, which it used to expand its operation (Keller, 2011).
According to Drake (1998), Southwest Airline has been experiencing growth on annual bases since it was found. The airline started with three aircraft operating in three planes only. Since then, the airline has grown to the capacity of operating more than 400 planes throughout the United States. This growth has been because of the increase in demand that has resulted to Southwest airline increasing number of flights in each of the airport hubs. This has led to presence of more aircrafts and more schedule flights in all the airport hubs selected by Southwest Airline.
Another cause of this congestion is increase in competition in the aviation industry and emergence of new companies. In the recent years, there has been emergence of other low cost companies in the airport hubs selected by Southwest Airline. ...Show more
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In the paper “A Case Study of Southwest Airline” the author analyzes the problem of congestion affecting the revenues and operation of Southwest Airline Company. It has several causes like increase in demand and low rate of expansion of airport capacity…
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