ºÝºÝߣ

ºÝºÝߣShare a Scribd company logo
How did Southwest Airlines remained
Profitable?
By: Aakash Bhagat
Objective
 To observe and understand the different tactics which were
used by Southwest Airlines that helped them to achieve the
success which other airlines hope to.
About Southwest Airlines Co.
 Major U.S. airlines.
 World’s largest low-cost carrier company.
 Founded in 1967 and adopted its current name in 1971.
 IPO was offered in 1971.
Fight Planning
 Point-to-Point Flying
 High frequency
 Short Haul
Single PlaneTactics
 Southwest is the world’s largest operator of Boeing 737.
 In 2014, the airlines recorded 680 Boeing 737 in his fleet.
 Low maintenance cost.
Fuel Hedging
1. Use of fuel derivative instruments.
2. Hedges based on real commodities
1. WTI c rude, Brent crude, GulfCoast jet fuel
2. Refined products : Heating Oils and Gasoline
3. Profit of 28 million in 2014, compared to 118 million loss in
2013.
Southwest Common-size Income
Statement
Conclusion
 Southwest is a company with the potential to reach the
heights that no company had ever attained.
 Many companies around the world are now trying to follow
the path that Southwest had walked in it’s past, for instance
Indigo and Spice-jet.
Q.E.D.
Thank you

More Related Content

Similar to Presentation2 (20)

Sooraj boeing presentation
Sooraj boeing presentationSooraj boeing presentation
Sooraj boeing presentation
sooraj yadav
Ìý
Boeing by sooraj
Boeing by soorajBoeing by sooraj
Boeing by sooraj
sooraj yadav
Ìý
Southwest Airlines
Southwest AirlinesSouthwest Airlines
Southwest Airlines
Prasant Patro
Ìý
Southwest airlines economics
Southwest airlines economicsSouthwest airlines economics
Southwest airlines economics
Shubham Kumar Sinha
Ìý
Jet airways
Jet airwaysJet airways
Jet airways
tanu4u
Ìý
AVIATION SECTOR IN INDIA
AVIATION SECTOR IN INDIAAVIATION SECTOR IN INDIA
AVIATION SECTOR IN INDIA
usfifa
Ìý
Jet airways 2
Jet airways 2Jet airways 2
Jet airways 2
AASHISHSHRIVASTAV1
Ìý
Corporate governance & strategic management
Corporate governance & strategic managementCorporate governance & strategic management
Corporate governance & strategic management
ShivangiPurohit5
Ìý
Air LINE Industry
Air LINE IndustryAir LINE Industry
Air LINE Industry
Ram Mohan Reddy
Ìý
International Accounting Final Work - Southwest
International Accounting Final Work - SouthwestInternational Accounting Final Work - Southwest
International Accounting Final Work - Southwest
Levan Kobakhidze
Ìý
Kingfisher's marketing plan
Kingfisher's marketing planKingfisher's marketing plan
Kingfisher's marketing plan
Ankit Agrawal
Ìý
Aviation ( World and India)
Aviation ( World and India)Aviation ( World and India)
Aviation ( World and India)
sucharita1
Ìý
Developing marketing strategies and plans
Developing marketing strategies and plans  Developing marketing strategies and plans
Developing marketing strategies and plans
Shreya Arisenapally
Ìý
Southwest airlines 2008
Southwest airlines 2008Southwest airlines 2008
Southwest airlines 2008
Manpreet Kaur
Ìý
Lecture 1 Case Study-Jet Airways_Design.pptx
Lecture 1 Case Study-Jet Airways_Design.pptxLecture 1 Case Study-Jet Airways_Design.pptx
Lecture 1 Case Study-Jet Airways_Design.pptx
PravalShandilya1
Ìý
Lecture 1 Case Study-Jet Airways_Design.pptx
Lecture 1 Case Study-Jet Airways_Design.pptxLecture 1 Case Study-Jet Airways_Design.pptx
Lecture 1 Case Study-Jet Airways_Design.pptx
PravalShandilya1
Ìý
Short case study on Jet airways
Short case study on Jet airways Short case study on Jet airways
Short case study on Jet airways
Sudhanshu Malewar
Ìý
Frankfinn Aviation Presentation ...
Frankfinn Aviation Presentation ...Frankfinn Aviation Presentation ...
Frankfinn Aviation Presentation ...
Syed Shabbir Hussain
Ìý
Southwest airlines
Southwest airlinesSouthwest airlines
Southwest airlines
Jayanth Narayan
Ìý
Failure of Jet Airways
Failure of Jet AirwaysFailure of Jet Airways
Failure of Jet Airways
Anup Joseph
Ìý
Sooraj boeing presentation
Sooraj boeing presentationSooraj boeing presentation
Sooraj boeing presentation
sooraj yadav
Ìý
Boeing by sooraj
Boeing by soorajBoeing by sooraj
Boeing by sooraj
sooraj yadav
Ìý
Southwest Airlines
Southwest AirlinesSouthwest Airlines
Southwest Airlines
Prasant Patro
Ìý
Southwest airlines economics
Southwest airlines economicsSouthwest airlines economics
Southwest airlines economics
Shubham Kumar Sinha
Ìý
Jet airways
Jet airwaysJet airways
Jet airways
tanu4u
Ìý
AVIATION SECTOR IN INDIA
AVIATION SECTOR IN INDIAAVIATION SECTOR IN INDIA
AVIATION SECTOR IN INDIA
usfifa
Ìý
Corporate governance & strategic management
Corporate governance & strategic managementCorporate governance & strategic management
Corporate governance & strategic management
ShivangiPurohit5
Ìý
International Accounting Final Work - Southwest
International Accounting Final Work - SouthwestInternational Accounting Final Work - Southwest
International Accounting Final Work - Southwest
Levan Kobakhidze
Ìý
Kingfisher's marketing plan
Kingfisher's marketing planKingfisher's marketing plan
Kingfisher's marketing plan
Ankit Agrawal
Ìý
Aviation ( World and India)
Aviation ( World and India)Aviation ( World and India)
Aviation ( World and India)
sucharita1
Ìý
Developing marketing strategies and plans
Developing marketing strategies and plans  Developing marketing strategies and plans
Developing marketing strategies and plans
Shreya Arisenapally
Ìý
Southwest airlines 2008
Southwest airlines 2008Southwest airlines 2008
Southwest airlines 2008
Manpreet Kaur
Ìý
Lecture 1 Case Study-Jet Airways_Design.pptx
Lecture 1 Case Study-Jet Airways_Design.pptxLecture 1 Case Study-Jet Airways_Design.pptx
Lecture 1 Case Study-Jet Airways_Design.pptx
PravalShandilya1
Ìý
Lecture 1 Case Study-Jet Airways_Design.pptx
Lecture 1 Case Study-Jet Airways_Design.pptxLecture 1 Case Study-Jet Airways_Design.pptx
Lecture 1 Case Study-Jet Airways_Design.pptx
PravalShandilya1
Ìý
Short case study on Jet airways
Short case study on Jet airways Short case study on Jet airways
Short case study on Jet airways
Sudhanshu Malewar
Ìý
Frankfinn Aviation Presentation ...
Frankfinn Aviation Presentation ...Frankfinn Aviation Presentation ...
Frankfinn Aviation Presentation ...
Syed Shabbir Hussain
Ìý
Southwest airlines
Southwest airlinesSouthwest airlines
Southwest airlines
Jayanth Narayan
Ìý
Failure of Jet Airways
Failure of Jet AirwaysFailure of Jet Airways
Failure of Jet Airways
Anup Joseph
Ìý

Presentation2

  • 1. How did Southwest Airlines remained Profitable? By: Aakash Bhagat
  • 2. Objective  To observe and understand the different tactics which were used by Southwest Airlines that helped them to achieve the success which other airlines hope to.
  • 3. About Southwest Airlines Co.  Major U.S. airlines.  World’s largest low-cost carrier company.  Founded in 1967 and adopted its current name in 1971.  IPO was offered in 1971.
  • 4. Fight Planning  Point-to-Point Flying  High frequency  Short Haul
  • 5. Single PlaneTactics  Southwest is the world’s largest operator of Boeing 737.  In 2014, the airlines recorded 680 Boeing 737 in his fleet.  Low maintenance cost.
  • 6. Fuel Hedging 1. Use of fuel derivative instruments. 2. Hedges based on real commodities 1. WTI c rude, Brent crude, GulfCoast jet fuel 2. Refined products : Heating Oils and Gasoline 3. Profit of 28 million in 2014, compared to 118 million loss in 2013.
  • 8. Conclusion  Southwest is a company with the potential to reach the heights that no company had ever attained.  Many companies around the world are now trying to follow the path that Southwest had walked in it’s past, for instance Indigo and Spice-jet. Q.E.D.