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An Airline in Trouble ?
Presented To
Prof. Hitesh Manocha
Presented By
Swagat Sen Gupta 48-B Akshat Jain 60-B
Pooja Katiyar 31-B Namit Kewat 23-B
Amit Tripathi 6-B
Background
• In 1966, Herb Kelleher, Rollin King and John Parker
formed the company.
• Initially called Air Southwest Co. but name changed to
Southwest Airline Co. in 1967.
• Commenced operations in Texas connecting Houston,
Dallas, San Antonio.
• Jan 1971, Lamar Muse was appointed first CEO.
• 1973 was its first profitable year.
• Kelleher became chairman in 1978.
• Southwest started flying out of Texas to New Orleans in
1979.
Background
• After September 11 attacks, Southwest was the only airline to
remain profitable while others grounded 240 planes and 70,000
workers.
Technological
• Use of e-tickets.
• Use internet to compare prices and find best options
for trips.
• Other planes can be used with better technologies.
Porter’s 5
Threat of New
Forces Entrants = Low
model
Bargaining Competitive
Power of Rivalry Threat of
Suppliers
within Substitute
•Food & Drinks = Products = High
Low Industry =
•Fuel = High High
Bargaining
Power of
Customers =
High
Recommendations
• Introduce continuous learning programs that will be
used to retain current employees.
• Create a promotional campaign like buy one ticket
and get discount on the return ticket.
• Improve turnaround times.
• Improve employee-management relations.
• Provide meals for sale on flights.
• Provide seat numbers to the passengers.
• Provide more legroom and comfortable seats to the
passengers.
THANK YOU