Southwest Airlines 2002 An Industry Under Siege
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Southwest Airlines was once a new entrant to the airline industry, entering the market in the 1970s and immediately taking an enormous share of the market. But a decade later, things changed. Airline competition became increasingly intense, and Southwest was unable to keep pace. What happened? 1. Airline competition intensified, as a number of other major carriers in the market began to emerge. Southwest competitors included major carriers such as Continental Airlines, Delta Air Lines, and United Airlines
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I was a Southwest Airlines pilot with a fear of flying, which made me one of the company’s highest-rated employees. When the Air Traffic Control system went down for hours on the day of the terrorist attacks, I was immediately mobilized to assist passengers to the nearest airport, where we could transfer to other carriers, who in turn could move passengers to alternative locations. The flight I was on was one of the many that suffered delays caused by the disaster. he said Ten minutes into our 3-hour flight, I had never seen so
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It was 2002, and Southwest Airlines was in the middle of a dramatic transformation. The company had been founded in 1967 by a bunch of college students, led by Charlie Hoxie, a business student, who dreamed of a new kind of airline. Now, 10 years later, the company was growing like a weed, with a market share of 9.4%, 1.4 billion passengers served a year and annual revenue of $7.3 billion. This wasn’t just any airline, it
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In the wake of the September 11th terrorist attacks and the 9/11 crisis, Southwest Airlines (SW, formerly Southwest Air) announced its worst year in history. The company suffered an 18.5% decline in revenues and 36% reduction in net earnings. However, Southwest’s response to the crisis is a remarkable turnaround story. In 2002, Southwest was in a state of crisis. Revenue plummeted 34% and earnings dropped by 5
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The industry that Southwest Airlines was involved with was air travel. In 2002, Southwest Airlines became a public company that was listed on the Nasdaq Stock Market. The airline industry was in turmoil, with major airlines (including American Airlines, United Airlines, and Delta) filing for bankruptcy, and Southwest was one of the few airlines surviving. In order to save the industry and save money, a lot of money was lost. Based on the experience as a freelance copywriter, I had the
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In January 2002, Southwest Airlines (“SWA”) launched a marketing campaign with a powerful tagline: “Passengers who fly Southwest can do so on time and for less.” In less than a year, SWA made history with the 500,000 mark in domestic seat capacity, increased its capacity by nearly 55% from the previous year, and had an average of fewer than 100 delayed and cancelled flights each month. SWA’s success is impressive and it is not hard to understand
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As the economy continues to sputter along the wrong side of life’s track, airlines are struggling to survive the latest recession. With a 2002 profit of $47 million—an all-time low, Southwest was not the only airline facing financial troubles. But this year’s winner is Southwest Airlines—the “Mom and Pop” airline that operates low-cost service in the tradition of the first three airlines. In the years of the recession, Southwest went from an airline that struggled
