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  • Essay / Southwest Airlines Case Study Solution - 707

    For years, Southwest Airlines has experienced stable costs, low fares, and boosting traffic. However, the latest changes in the market (see Figure 1: SWOT analysis), including rising energy costs and the entry of new low-cost carriers, threaten the airline's future. As a result, LUV must decide whether to acquire bankrupt ATA Airlines' slots and gates at LaGuardia Terminal (LGA) in New York City (NYC) in order to expand its capabilities. Before selecting the appropriate alternative, three alternatives were analyzed and evaluated based on four decision criteria: customer experience, cost, growth rate/market penetration, and ease of implementation (see Exhibit 2: Factor Analysis). Of all the alternatives, it was suggested that Southwest Airlines enter New York City by bidding for slots and gates at the LGA (see Exhibit 3: Analysis of Alternatives). This alternative addresses the challenge of changing the customer experience, which means adding more flights to and from the East; Furthermore, entering new markets will strengthen “grid power” through LGA. At the same time, the move will allow signing more codeshare agreements with other airlines serving international destinations and offering new products and services to LUV customers such as loyalty rewards, on-board Internet, duty-free purchases on board, etc. as a result, this will increase passengers' knowledge and experiences while flying with Southwest Airlines. However, choosing this alternative carries a potential risk. Over the past few years, energy prices have seen a significant increase affecting costs, tariffs and even the capacity needed. However, Southwest Airlines has been able to cover fuel for a decade. of paper ......e airport management. In case of winning the slots and gates, LUV would negotiate the gates and slots with the airport authorities, initiate the process of recruitment and relocation of current and new employees to LGA. As a result, the airline will have to use its IT department, a new infrastructure that will contain the latest updates in terms of code sharing, booking, schedules, online shopping, etc., to serve current customers and potential. Essentially, once the project is completed, it will be important to evaluate the success of the implementation process and how the service can be improved in the future. Finally, this process will take 14 months and once the strategy is implemented, Southwest will be able to maintain and improve its low cost position, customer service demand and experience as well as its technological infrastructure in the transportation sector commercial air..