An Investment Analysis of Southwest Airlines for Embry Investment Group

An Investment Analysis of Southwest Airlines for Embry Investment Group

Kenneth O’Connor

Embry-Riddle Aeronautical University, Worldwide

Table of Contents

Tables and Figures 3

Abstract 3

Introduction 3

Why this Analysis was Done 3

The Limitations of this Report 4

Background Information on Southwest Airlines 4

Analysis Methodology 4

Short Conclusion 5

Supporting details and data 5

The Financial Reasons to Invest in Southwest Airlines 5

An Assessment of Southwest Airlines Past Performance 5

2013 Financial Statistics 6

An Assessment of Southwest Airlines Future Performance 7

The Numbers 7

The Logical Reasons to Invest in Southwest Airlines 8

Aircrew 8

Ground crew 8

Aircraft maintenance 9

Business administration 9

A short Timeline of Southwest’s Fleets Major Upgrades 10

Conclusion 12

Glossary 13

Appendix A 14

Detailed Graph Creation 14

Appendix B 15

Additional Information on Southwest Airlines and AirTran Airways 15

Southwest Airlines' Recognitions 15

Appendix C 17

About Red Rock Biofuels 17

Appendix D 18

The stock price data from my father 18

References 19

Tables and Figures

Figure 1. 9 Year Closing Price $ 5

Figure 2. 1 Year Closing Price $ 6

Figure 3. Southwest and AirTran destinations 15

Abstract

Dallas-based Southwest Airlines is in their 44th year of service, and with 41 consecutive years of profitability, they continue to be one of the most admired airlines in the world. This analytical report was done on Southwest Airlines for EIG to determine if it would be a good investment to buy a majority share in SWA. The financial data was collected from the Southwest Investor Relations Homepage and from a data file containing the daily close price of SWA. The logical data for this report was collected from the ERAU worldwide degree page. The results from the financial data were supportive of a profitable investment by EIG in Southwest Airlines, and the logical data...