SWOT Analysis of Southwest Airlines

Southwest Airlines Corporation is an USA’s low-cost airline. It is the biggest airline in the world by carrying highest number of passengers per year 2009. As of 31 December, 2009, it drives more than 3,200 flights daily. Southwest Airlines has carried more customers than any other U.S. airline since August 2006. It is also known as the synonym for customer service quality and low-cost. To better understand the Southwest Airline the SWOT analysis of is discussed below.

Strengths

1. Ambition for the airline industry and other businesses around the world  
2. Low cost leadership southeast airline adopted low cost strategy to give every individual to fly with southeast airline at the lowest possible fares.
3. 40 years old in airline industry achieved economies of scale.    
4. Southwest Airlines has constantly been victorious in terms of profitability, good union and employee relations, and customer satisfaction.
5. Recognized as one of the great value and excellent service.
6. Proposed acquisition of AirTran Holdings, Incorporating the parent company of AirTran Airways; the acquisition will considerably enlarge Southwest Airlines’ low-fare service to several further customers in more domestic destinations or markets.
7. Central to the company’s achievement is a culture of family-orientation, flexibility, and fun.
8. Whereas 90% of its employees are unionized, labor relationships have been extremely positive, particularly by industry standards.
9. Highest daily domestic departures than any other commercial U.S. airline
10. Ranked number one “Most Reliable Airline for dependability” in Forbes Magazine, 2008, and ranked number one “Customer Service or Friendliest Airline” Time.com, 2008, and “Readers’ Choice Award for Best Airfare Prices”SmarterTravel, 2009

Weaknesses

1. There are no prescribed structures for labor or union involvement in management decision making
2. Less number of international takeoffs and less flying during morning time
3. Do not have segmentation such as Business Class, Economy class, and Lower class etc.
4. Dependence on single producer
5. Legroom to carry freight and cargo is limited.

Opportunities