Analysis of Southwest Airlines

EXECUTIVE SUMMARY Southwest Airlines has come across some issues and the one with the most concern is expansion. Southwest must meet the current and forecasted demand, find sufficient facilities, keep their strategy coherent and consistent, and ensure that the entry into a new market is timely. These issues main constraint is finding facilities at a low cost to remain profitable. What has to be taken into account would be new construction costs in a major …

…Simply, if there is excess demand in a specific route from Chicago or Baltimore (for example from Chicago to Indianapolis), the aircraft may be used to relieve some of that demand. In the same scenario, instead of having the second 737 sit idle before its round of 4 daily afternoon departures from Baltimore to Chicago-MDW, we recommend that it be used to relieve excess demand also. Planes make money in the air and not on the ground.