Air Southwest was founded by a Texas businessman name Rollin King, and a lawyer named Herb Kelleher in the year 1967. In 1971 it was later renamed to Southwest Airlines. Southwest Airlines was originally based on the concept of providing low-fare air transportation service between the three major cities of Texas: Dallas, Houston, and San Antonio. To this day Southwest provides services among 64 cities in the United States. The company maintains sturdy sales. Southwest Airlines grew to be the fourth largest airline company in the United States based on the number of domestic customers carried.
The reason for their prominent force in the airline industry is due to their low-cost models which many of their competitors cannot match. In 2002 Southwest was the only major short-haul, low-fair, and point to point carrier. The company’s average trip length is 441 miles with an average flight time of approximately one-hour. The problem facing Southwest Airlines is it will not be able to sustain its reputation for providing low cost airfares, and exceptional punctuality in flight arrivals and departures considering that there is an abundant amount of competition in the airline industry. A major question being ask is will it be able to grow in the future. Can it develop new business strategies to continue its productivity, or its resounding level of exceptional customer service?
With an airline industry with so much concentrated opposition it has led Southwest Airlines competitors to try and duplicate some of Southwest's success. This has led to most airlines experiencing financial trouble due to the overall lowering of prices. United and Continental Lite both created shuttle which embodies the same concept of Southwest’s point to point, and short-haul flight system. United’s Shuttle had planned on raising their prices by 10 dollars. There could be two factors that can explain the reason for the increment in prices. Either United was losing money or they were trying to...