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Southwest Airlines

In 1971 from a sketch on a napkin Southwest Airlines was born with three boeing737 jets flying to three Texas cities. Kelleher and a group of investors had put up the 560,000 dollars to found the company. (Business Week 1989).The philosophy of the company was clear to offer low-fare seats every flight every day.

Southwest gave away leather ice buckets and fifths of liquor on its flights in order to keep its planes full (Financial World 1989).The fare war started in earnest in a heated war with Braniff. The company faced the fiercest competition anyone had within the airline industry, Southwest however captured a lot of local fans and sympathy.

Southwest's big break came in 1974, when all other airlines serving Dallas's Love Field moved to the then new Dallas-Fort Worth (DFW) Inter continental airport. This move was required by a contract signed in 1968, before the birth of South west. Thus, the company was not obligated to move to DFW.

Court battles with both the board of the DFW airport, as well as other airlines, followed. However, Southwest won the court battles before the US Supreme Court, giving the company a monopoly at Love Field (ibid.). Love Field was attractive because


The concept was to offer frequent, no-frills, low-fare service in short-haul markets using a point-to point system rather than a hub-and-spoke system.

Southwest's traffic reports showed that routes like Harlingen, Houston and Midland Dallas were among the 200 largest US travel markets, and the company's experience was that air travel tended to double in any city within 12 months after it began its service with more frequent flights and low fares. In addition, South west was the first carrier to introduce lower fares for weekend and evening travellers.



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Approximate Word count = 1178
Approximate Pages = 5 (250 words per page double spaced)


  

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