Background of the industry: Airline industry is huge and developing industry that contributes profoundly in the economy growth of a country. In United State airline industry is growing at a very good speed. A rapid growth has been noticed after introduction of Low Cost Carriers in this sector. In present scenario governments of developing countries have realized the benefit of tourism sector and its contribution towards economic growth. Government is offering good infrastructure and tourism friendly policies while travel companies are offering very lucrative holiday packages to travellers . As per a few government reports, airline industry is generating revenue of around $1.2 trillion and also providing employment to around 11 million people.
History of Southwest Airlines and its Business: Air Southwest Company is an American company formed in March, 1967 by Rolling and Herb. The company initially faced various legal challenges by its competitors. The company changed its name from Air Southwest to Southwest Airlines. Southwest Airlines started its operation in June, 1971 by providing services within Texas and owned four aircrafts to run its operations initially. For initial two consecutive years company suffered losses which resulted in selling of one of its Aircrafts. In October, 1974 Southwest Airlines launched its forth Boeing and fifth Boeing in July, 1975. In September 1976 the Company released public issues in market and in process of development, the airline company purchased four more aircrafts during 1977. In August of 1978 Company signed a deal with Braniff for leasing 727-200 aircraft for a period of two years and also to provide training for maintenance of the aircrafts. In the year 1980, Southwest airlines started services to Oklahoma City, Tulsa and Albuquerque and in the same year company realized good passenger traffic growth. During 1981 Company inked a deal with Trans European Airways for leasing 737-200 Boeing for 26 months. During 1982 company started transaction through travel agencies and also introduced services to various cities. Company made a continuous growth in passenger traffic as well as in profit. Company made four successful acquisitions; acquire Muse Air in 1985, Morris Air in 1993, ATA Airlines in 2008 and Air Trans in 2011. Company is not only the first Airline which became online in the year 1995 but also number one in terms of online revenue.
Products and services offered: Currently Airline is extending its service to 37 states comprising 72 locations. Company is operating 3,300+ flights on daily basis. Top served destinations by airlines are; Chicago-Midway, Las Vegas, Baltimore-Washington, Phoenix, Denver, Houston-Hobby, Dallas-Love, Los Angeles, Oakland, Orlando. The company has recently started providing its services to two Airports in South Carolina. Currently this airline company is not offering any direct services in other countries though having agreements with other Airlines to provide connecting flights to its customers going to other countries. Company is having 80 percent domestic travellers while 20 percent of its passengers are international.
Financial information for the last five years: except the initial phase and recession period, company has shown a good performance in respect of economic growth. Below given table is showing financial performance of company for last five year:
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