To:Northwest Airlines Group
From:480
Subject:Budget Airline Start-Up
Date:November 26, 2005
The pursuance memo reviews the factors that have contributed to southwestern United States Airlines productive performance and provides a robust recommendation regarding the likelihood that the airlines system can be success completey replicated for an operation based in Vancouver.
Current Situation
Southwest Airlines has grown from strength to strength during its 20-year history. It is presently the most profitable and productive carrier in the unite States as measured by operating profits - $182 million in 1992 - and employee productivity - 2,443 passengers carried per employee. The airlines no-frills model no meal service or pre-assigned seats, direct mesh rather than through an airline reservation system, point-to-point operations or else of the hub-and-spoke route system, and no interlining of bags - runs counter to industry learning regarding successful airline operation, but it has created a new customer, the convenience-sensitive traveller who appreciates the lower fares, on-time departures and less hassle that differentiates Southwest from the more constituted carriers.
Analysis
Southwests durable success can be attributed to its ability to create and maintain a competitive receipts through two major factors:
1. A defined strategy
Southwest Airlines is a low-cost airline carrier offering commodious point-to-point connections at low fares to convenience-sensitive business and leisure travellers. The airline is act gradual organic growth domestically, initiated by the presence of an fortune to grow a market rather than compete with established carriers for market share. The growth strategy is so consistently successful that it has come to be known as the Southwest resolution. The effect is characterised by immediate growth in the size of it of the market as Southwests lower fares shift ground travellers to air travellers...If you want to get a full essay, order it on our website: Ordercustompaper.com
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