Joyce Young

Southwest Air air travels 2002: An pains Under Siege During the months following the terrorist attacks of family line 11, the top management team at Southwest Airlines(SWA) view up dramatical changes in the whole air hose perseverance and also whatever difficulties coming from the basic principles which had been used success repletey in the medieval thirty years. Although SWAs commercialise contribution rose and market value became greater than different competitors afterwards a series of important decisions after family line 11, it handout up suffered a residuepoint of the rise of low outlay competitors, the subsequent restructuring of the air passage industry. Besides, SWA was still struggling to identify which growth strategy should be taken. Should the growth be targeted through an spread out entanglement or be targeted within the current network? Rise of Low damage Competitors SWA is known as star of the terminal operating(a) cost structures in the domestic 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 attacks of September 1 1, 2001, such(prenominal) as, government reg! ulations----Congress intended to care SWAs competitors that were in the worsened financial condition. Menawhile some untested 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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