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Southwest Airlines
Southwest Airlines (SW Airlines) is the largest airline in the US, based on passenger numbers, and the third largest airline in the world. The reason for the airline’s strength comes down to one thing; the Southwest Airlines airfares. They approached the airline industry with a business model different from that all of all the other major airlines; they offered customers no frills air travel with low fares, refundable tickets, one way tickets and tickets that could be changed without penalty. While a Southwest Airlines flight may not be as luxurious experience as other airlines, customers have responded to the cheap Southwest Airlines airfares, which are sometimes hundreds of dollars less than the traditional carriers. |
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Southwest Airlines History
Southwest Airlines got its start in 1967 in Dallas, Texas, with plans to service three Texas cities. Their prices soon made them both the target of lawsuits from major airlines operating in the area and a favorite of passengers flying internally in Texas. Southwest successfully trumped their competitors in court cases and slowly expanded their operation from regional service to nationwide flights. Unlike every other airline operating worldwide, Southwest Airlines has consistently made a profit every year of operation, beginning in 1973. They do this by keeping their costs down in a number of ways. Southwest Airlines reservations are made exclusively online, keeping the cost of customer service operators down to a minimum. Their no frills in flight amenities also keep costs also. Additionally, Southwest has kept their cost low by buying fuel hedge stocks, letting them ride the highs and lows of oil price with more stability than other airlines. Southwest Culture Southwest Airline’s success has forced other airlines to experiment with low cost tickets, like American, United, Continental, and Delta, who have all lowered their ticket prices in some markets to compete with Southwest. Also, Southwest has inspired other low cost carriers to enter the marketplace worldwide, like JetBlue in the US (born out of another southwestern airline) and Ryanair in Europe. Southwest has become so popular that they are able to offer their own Southwest Airlines credit card. With their fares as low as $39, the name Southwest has become nationwide slang for cheap air travel. To view a Southwest Airline price list, visit their website. |
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