Southwest Airlines Co. - 2004
Company Background
Southwest Airlines is an airline company that actually went into business on February 20, 1968 after the Texas Aeronautical Commission approved their plans to fly between three cities. Before the name was changed to Southwest Airlines, the company name was called Air Southwest Co. The founders of this company were two men named Rollin King and Herb Kelleher.
In the 1980s and 1990s, Southwest further expanded and by 1993 it was serving 34 cities in 15 states. It then moved across California, then to the Midwest states, and then to the Northwest states. Afterwards it then went to Florida and onto the East Coast. Southwest dominated the markets really quickly and dominated the markets with its low prices and no- frills (extras or add-ons). After it firmly established itself to the major states, some competitors within some markets soon withdrew, allowing the airline to expand even faster than expected.
During that time, Southwest was currently the fourth –largest domestic carrier in terms of customers boarded. The airline has transformed itself from a regional carrier operating out of Dallas in to a truly national carrier. At the end of year 2002, the airline has served the following:
• 58 cities in 30 states
• Operated more than 2,800 flights per day
• 375 Boeing 737s in operation
• Flew 45.4 billion revenue passenger miles (compared to 44.5 billion in 2001)
Lamar Muse led Southwest in its climb to profitability; but in a dispute with the board he was ousted back in 1978. That’s when Kelleher moved in the top position and ran the airline until June 19, 2001. On this date, Kelleher was succeeded as CEO by Southwest’s vice-president and general counsel, James F. Parker. Mr. Parker has been the airline’s top labor negotiator, which makes him well known throughout the company and the employees. According to Kelleher, he has made every major decision...
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