Southwest Airlines’ Mission Statement

The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride,

and Company Spirit.

Herbert (Herb) D. Kelleher Executive Chairman of the Board

SWA Board of Executives

SWA Board of Executives

Gary C. Kelly Vice Chairman of the Board and Chief Executive Offic

er

SWA Board of Executives

Colleen Barrett President

In 2002, Southwest Airlines Emerges Into the New Generation With a New Corporate Log

o

A Boeing 737-300 Aircraft in Southwest Airlines Historic Colors

Southwest's New Paint Scheme

SWA’s Strengths

1. Finacial Stability

2. Record of Developing Underutilized Airports

3. Outstanding Record of Customer Satisfaction

4. Excellent Employee Relations

5. Commitment to Community Involvement

The Very First Advertisement in 1971

Two new "airline-within-an-airline" competitors faced off against Southwest in 1994. While other carriers may offer low fares on a handful of routes, only Southwest Airlines offers low fares on every seat of every flight, to every city we serve.

Advertisement against

United Airlines in 1994

Questions

1. At the beginning, what forces in the environment most effected Southwest Airlines, and what opportunity was Southwest founded to take advantage of?

Forces: 1) Litigation by Barniff and Texas International 2) CAB’s Jurisdiction to prevent competition in the state

Opportunity: To provide short – haul, intrastate service at a reduced fare on frequent flights to meet the needs of local travelers

Questions

2. How would you chart the development of Southwest’s business – level strategy over time?

1971 Establishment1973 - Ten – Minute Turnaround

- Half – Price Fare- Premium Liquor Attached

1979 Expansion - An Interstate Airline- Houston – New Orleans

1989 Expansion into California1991 Expansion into Chicago1996 Expansion into Florida

Questions

3. What kinds of dynamics characterize competition in the airline industry?แรงขบัเคล่ือนใดที่เป็นตัวกำ�หนดลักษณะก�รแขง่ขนัของอุตส�หกรรมก�รบนิ

1) Air Fare2) Service3) Flight’s Frequency and Punctuality4) Immediate Reaction of the Competitors

Questions

4. What do you think the future holds for Southwest?

Optimistic:- Grow rapidly and stably within the United States- Become “World Wide Airline”- Get more online customers

Pessimistic:- Earning might be affected by oil price and terrorism- More competitors

Quarterly Balance Sheet

2004

Cities, States, and Airports

www.southwest.com

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