Southwest

Background

Southwest Airlines, a Dallas-based airline, began operations at Love Air Field in 1971. Since then, it has grown to be the fourth largest airline in the United States, specializing in major short haul, low fare, high frequency, point to point destinations. Southwest hit the big leagues of air travel in 1989, when its revenue exceeded the billion-dollar mark and acquired major airline status. As of 2000, Southwest has had 28 years of consecutive profitability and in 1990, 1991, and 1992, the only major carrier to make both net and operating profits.

Southwest operates 358 Boeing 737 jets to 58 cities across the United States, employing over 33,000 people. Southwest has been citied as one of the best companies to work for by Fortune magazine, ranking number 4 in the 2001 issue. In the last four years, Southwest was named the most admired airline in the world. Southwest provides low cost travel primarily to tourists with one level of no frills service. Business travelers tend to prefer upgraded classes of service and participate in various frequent flyer programs. Southwest is the only airline to reward passengers with flight coupons based on number of flights (16) rather than actual mileage flown.

In 2000, most airlines began experiencing slow downs as well as their highest level of consumer complaints in regards to on-time departures, arrivals, baggage handling, and general customer service. High fuel costs, which elevated ticket prices and concerns of an economic slow down, kept most travelers on the ground. In addition, the airline industry came under fire for poor service. Congress introduced an airline consumer bill of rights, including promises of improved customer service and accountability. The major airlines made an effort to step up their level of service in order to prevent such a measure coming into effect and being enforced by the government.

On September 11, 2001, the airline industry took a devastating blow. After the wake...