Economics of Southwest Airlines Term Paper

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Economics of Southwest Airlines

A Brief Economic Analysis of Southwest Airlines Today

Southwest Airlines was incorporated in 1967 and has its headquarters in Dallas. It is a U.S. airline that offers domestic point-to-point service; as of December 31, 2004, the company operated 417 Boeing 737 aircraft, with service to 60 airports in 59 cities in 31 states (Southwest 2); the company also has at least another 261 Boeing 737-700s on order (Comerford 1). Today, Southwest has six reservations centers (one each in Albuquerque, Chicago, Houston, Oklahoma City, Phoenix, and San Antonio); in addition, the company sells credits to its business partners (these include credit card companies, hotels, telecommunications companies, and car rental agencies) (Southwest 3).

Economic Performance and Discussion

While much of the aviation industry was devastated by the terrorist attacks of September 11, 2001, Southwest has managed to maintain an even keel due in large part to the progressive management style of its chairman, Herb Kelleher.

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