This 11 page paper discusses Southwest Airlines beginning with an historical background report that covers the founding of the company and its initial legal battles. The principles under which the company was founded are explained. Strategies to gain a competitive advantage is another section that reports the service and fares offered. A discussion of the company's competition follows, including examples of price wars and how Southwest overcame them as well as how the company moves into a new market. Marketing strategies are discussed beginning with their beginning strategy and the promotions they have offered. Selected fiscal data are included. The writer also discusses what a SWOT would look like if it were completed and describes some issues that could pose a threat to the company. Bibliography lists 6 sources.
Name of Research Paper File: MM12_PGSWA3.rtf
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about a different kind of airline, one that would provide air service to three major cities in Texas - Houston, Dallas and San Antonio (Robinson, 2000). This new airline would
offer more convenient schedules for commuters than the other airlines, it would offer low fares and it would be a no-frills airline (Robinson, 2000). This was the beginning of Southwest
Airlines. By that November, Kelleher had obtained $500,000 in funding and he filed an application with Texas Aeronautics Commission to provide service to the three cities (Robinson, 2000). Air Southwest
did obtain approval but other major airlines challenged the plan and gained a restraining order (Robinson, 2000). The airline industry was under very stringent regulations at the time and required
proof that there would be sufficient customers for any new airline or even any additional flights or routes (Robinson, 2000). This was only the first of the legal battles,
Kelleher and King would struggle through but after three years of going through the court system, they finally won this first battle (Robinson, 2000). The first flight for Air Southwest
left Love Field in Dallas for Houston (Robinson, 2000). Other legal battles would follow. For example, in 1972, the Dallas/Fort Worth Regional Airport Board files a suit against
Southwest to stop them from operating out of Love Field, which was the downtown airport for Dallas (Robinson, 2000). That battle took three years but they won again (Robinson, 2000).
While this was going on, Kelleher was going back and forth to Washington to get permission for Air Southwest to add routes to other states (Robinson, 2000). The Wright Amendment
in 1979 allowed the airline to provide service to neighboring states (Robinson, 2000). The legal battles were costly, in fact, the company was forced to sell one of its