Further, the second-largest market in the airline industry is China with around 660 million passengers in 2019. The highest airline traffic in the US depicts strong growth potential for Southwest Airlines.
The United States had the largest commercial air travel market in 2019 with over 926.7 million passengers. The revenue in the airline industry of the US is also expected to reach US$50,341 million by the end of 2021 with an expected growth rate of 29.07 % per year. Further, the market size of the domestic airline industry in the US is $106.3bn and the domestic airline industry is expected to increase 59.7 % in 2021 (IBISWorld, 2021). The United States, China, EU, and Brazil are major markets for air travel and Southwest Airlines is one of the main airline companies in the low-cost category (Statista, 2021). The revenue of the aviation industry at the global level was continually growing at a CAGR rate of 5.3 % from 2009 to 2019 but it is only in 2020 that the aviation industry has faced massive set backs. The airline industry had been growing at a very fast pace at the global level but the outbreak of COVID-19 paralyzed the growth of the aviation industry in 2020 due to international travel bans and the threat of COVID-19. The vision of Southwest Airlines is “To be the world's most loved, most efficient, and most profitable airline”. The mission of Southwest Airlines is to deliver high-quality customer service with a focus on warmth, friendliness, individual pride, and company spirit. Southwest Airlines mission and vision statement Further, the company earned a revenue of USD 9 billion in 2020. currently operates the airline services in 45 states and multiple Central American destinations. Gary Kelly who still serves the top post. Moving further, in 2008, Barrett was replaced by a new president i.e. Between 2004 to 2005, the airline company also participated in different television reality shows on the A&E Network to improve its brand image and recognition. The key measures being taken by Southwest Airlines include the appointment of a new president, Colleen Barrett in 2001 and the establishment of new initiatives such as self-service check-in kiosks in 2002 and online boarding passes for guests in 2004. However, since the early 21st Century, there has been an increase in the financial difficulties in the airline industry which resulted in the restructuring of Southwest Airlines Co. In addition, the airline services were extended to east and southwest locations in the 1990s. Moving further, the company started operating interstate in 1979 by scheduling flights in adjacent states. The company began operating as the intrastate airline company within Texas with flights flying between Dallas, Houston, and San Antonio.
Southwest Airlines was founded on March 15, 1967, by Herb Kelleher and Rollin King and was initially named Air Southwest Company. features low-fare services and frequent flights of short routes (Simple Flying, 2021). The airline operates around 4000 departures per day during the peak travel season. is an American airline company that has its headquarters in Dallas, Texas. The end section of the article sheds light on different measures that can be taken by Southwest Airlines to improve its competitive position in the industry. The article also includes an evaluation of the internal and external market conditions of Southwest Airlines through the effective use of various strategic evaluation models and tools. After reading this article, you will get to know about the growth factors relevant to the airline industry in the US and the market opportunities available to Southwest Airlines. This thoughtful article aims to perform a detailed strategic analysis of the current performance and growth prospects of Southwest Airlines, one of the leading airlines in the US.
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