Southwest Airline And Us Airway Commerce Essay

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I want to be able to be part of an organization that supports and understand its employees. The company should be able to provide full liability for myself as an employee, such as health benefits. Being part of a company means that the company and myself with work together to provide the best service for customers while making a profit. I want to be able to work in a safe and respected environment that allows me to be potentially grow.

Southwest Airline was founded by Rollin King and Herb Kelleher in 1967 and became an official, public airline in 1971. It started in Love Field when King and Kelleher wanted a way to link Dallas with San Antonio (Southwest Airline Co., 2010). Soon after, Southwest Airline was able to provide services for the East Cost and Florida (Southwest Airline Co., 2010). Southwest Airline introduces "advance-purchase Fun Fares" and a "frequent-flier program" in 1986 which marketed the airline to the public (Southwest Airline Co., 2010). In order for Southwest Airline to better serve its customers and convenient for its employees, the airline invested a lot of effort into technology systems. For example, customers were able to make their own purchase through the company's website. In 1996 and 1997, Southwest Airline was able to carry passengers from four US cities to Europe, including nonstop flights from Oakland to Baltimore (Southwest Airline Co., 2010). After many years of success, Southwest Airline started to face a difficult time in business. Starting in 2000, the airline's Boeing 737 overran the end of a runway in Burbank, California. Following the major accident, Southwest Airline faces a dispute by the airline's ground crew union (Southwest Airline Co., 2010).

Despite conflicts, Southwest Airline was able to profit for thirty-seven years in the airline industry and was rank #256 in Fortune 500. Today, Southwest Airline is the leading US airlines, offering flight for almost seventy cities (Southwest Airline Co., 2010). Southwest Airline is able to competitively compete with competitors, such as AMR Corp, Continental Airlines, and JetBlue, because it is able to offer low-cost and flexibility in seating arrangements for its passengers(Southwest Airline Co., 2010).

STRENGTH:

Southwest Airline had carefully planned out their business plan, which empowers the company's strength. Customers have given Southwest Airline the reputation of being the best discounted low cost carrier for the last three consecutive years (Southwest Airline Co., 2010). For this reasons, it has a high capacity of passengers. The airline continues to profit and 2003 initiate its 31st consecutive years of continuous profit (Southwest Airline Co., 2010). During the economic crisis, Southwest Airline continues to offer low prices for its customers, making it hard for competitors to compete. The reason they are able to do so is because Southwest Airline bought jet fuel while the prices are low and saved it for future use, like today when other airlines are paying market price. This protects Southwest from threats within the industry.

WEAKNESS:

Southwest Airline, like any other business, faces weakness that are difficult for it to achieve the objectives. Being a domestic airline, Southwest Airline does not offer international flights. Unlike other airline, it does not have assigned seating for its passengers, it is base on a first-come-first-serve bases; therefore, it does not offer business or first class. Because Southwest Airline uses only one kind of aircraft, some customers will want to fly with a different airlines for longer flights.

OPPORTUNITIES:

Southwest Airline had been a successfully growing business and is predicted to continue to be one of the leading domestic airline. Some opportunities Southwest Airline offers that are helpful to achieve objectives are the use of technology. Southwest Airline invest its finance in advance technology to better serve its customers and make the work of its employees more productive. The use of technology allows customers to conviently research their airfare without having to call to one of the representatives. The airline is also able to increase the awareness of the business with internet advertising. In addition to the improvement of technology, Southwest Airline contributes to national and international markets. It contributes to not online the market within the United States but also to foreign countries.

THREATS:

Throughout the years, Southwest had been trying to limit its threats which could complicate its path to achieving its objectives. The strongest crisis Southwest dealt with was the decline customers due to the difficult economy and terrorism. While some people are not spending due to the economy, others are afraid to fly. The rate of demands dropped after the attack on September 11th. As a result, the cost of airline security increases and more government regulations are carried out. Although Southwest Airline had fuel hedge, they still suffer from gas and oil price. As the internet becomes part of our daily activity, Southwest Airline must deal with the fact that customers are able to compare prices in one seating with a click on the internet.

US AIRWAY

DECISION

Through the difficult history of the business, US Airway still gets back on its feet and find new strategies to improve the business. I want to work for US Airways for these reasons. I believe US Airway is a strong business and never give up to a bad situations.

BACKGROUND

What started as an airmail service by Richard du Pont in 1939 became today's greatest airline. In 1939, it started to expand its services to carry not only airmail, but also passengers from Midwest and East Coast. In 1987, the company merges some of the largest airline at the time, Pacific Southwest Airlines and Piedmont Airlines (US Airways Group, Inc., 2010). Due to high fuel prices, USAir struggles through financial crisis and were force to lay off 9,000 of its workers (US Airways Group, Inc., 2010). In 1994, USAir tried to offer low airfare to customers but the low airfare could not support the business. During the same year, "a jet carrying 13 passengers crashed at Pittsburgh - USAir's second fatal crash that year" (US Airways Group, Inc., 2010). The airline faces more dilemmas when 300 of its pilots took retirements while other pilots were called upon request for military (US Airways Group, Inc., 2010). US Airways separated from USAir and officially became its own airline in 1997 (US Airways Group, Inc., 2010). During the rollercoaster ride for US Airways, it faces a national crisis during the September 11th terrorist attack which it was force to limit its flight destination and lay off 20% of its workers (US Airways Group, Inc., 2010). The airline filed for bankruptcy in 2002 and seek financial help from the federal and seek for a second financial help from the federal in 2004 (US Airways Group, Inc., 2010). US Airways is now serving 200 cities with large aircrafts, 350 jets, and 300 aircrafts for independent carriers (US Airways Group, Inc., 2010). In Fortune 500, US Airway was rank 222 (US Airways Group, Inc., 2010). As of today, US Airway is still recovering from its rough history but its tactic to recover is to merge with other airlines. It is becoming more stabilized with better strategic planning and is becoming a stronger threat to competitors, such as AMR Corp., Delta Airlines, and Southwest Airlines.

STRENGTH:

US Airways offers customers with low airfare. It tries to find innovated ways to improve its online growth and increase the number of customers. With online capability, US Airways is able to provide customers with strong online presence. Because it offers a large number of destinations, customers are able to have more traveling options. Throughout the years, US Airways have improved their customer service, internet service, equipment upgrades, and business strategies. With better business tactics, US Airways is able to alliance with some of the biggest airlines.

WEAKNESS:

Along with strengths, US Airways also have its own weaknesses. It faces regulations and higher insurance liability because it had a history of accidents and labor disputes; therefore, it raises the fees for customers. US Airway faces many difficult times which pushes the airline to suffer from many angles during different times, putting it at a poor financial position.

OPPORTUNITIES:

The biggest opportunity for US Airway is the ability to promote customers with many traveling and vacationing programs. Also, US Airway strategy is to merge with other big airlines. US Airway constantly tries to add new routes for the continence of the customers.

THREATS:

Through many difficult situations US Airways faces in the past, it has many threats that contribute to the achievement of its objectives. Some undeniable threats that US Airways and other airlines face are competition and the economic slowdown. US airways suffers price war with competitions because some of its competitors can offer customers with lower price than it can. Consumers' lifestyles and buying patters are changing due to the economic changes. People are less willing to fly for leisure and they are less willing to spend money. This impact the US Airway because it results in a financial slowdown. Finally, some customers are afraid to fly due to the company's reported accidents and terrorist attacks. As the government enforce more regulations, US Airways is limited to what it can and cannot do.

Evaluation (citing with an author (author,year), citing without an author (a few words from the title that clarify which source being used, year). Make sure to match the in-text citation with the reference accordingly)

Opinion of both companies

Pros/cons of each company

Rank Company A and B

Recommendations

My next step in pursuing my career goals

My qualificiaton for an entry-level position

Update my resume

Creating a career plan and identify life changes

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