The Archetypical Low-Cost Air Carrier: Southwest Airlines :: Aviation Southwest Airlines Flying Essays

AbstractThe seventh largest major domestic respiratory tract in the United States (US), southwestward Airlines, is commonly known or referred to as a low-cost carrier. southwestern United States Airlines is the only major air passage that provides short- lead, point-to-point avail in the United States. In fact it was the first airline business of its pillow slip ever started it has become the archetypical low-cost airline. The idea has proven itself so well, that other start-up airlines have based their company strategies upon the basics of Southwest. Today, there atomic number 18 two other low-cost air carriers (the other two airlines atomic number 18 considered national airlines and not major airlines) that be actively and aggressively competing with Southwest Airlines for business and profit turning. The three American low-cost air carriers be currently posting profits even in light of the US economys current state of affairs, with Southwest Airlines first, JetBlue seco nd, and Air Tran third, in profits. How is this possible when the major six airlines are reporting losses of millions and millions of dollars apiece quarter? The answer to this question begins about 30 years ago. The prototypic Low-Cost Air Carrier Southwest AirlinesThe product one airline can offer is the same exact product the next airline can offer, a single available seat mile (ASM) for sale. The difference between the airlines lies in the marketing, routing, pricing, executive decision-making, and the operating strategies that each airline directs to continue an eye on regarding that one product. It is through these strategies that an airline must find productivity in total revenue passenger miles (RPM) flown to be profitable. When the ASM is filled with a fare-paying passenger, gross sales or income is recognized, and it converts to an RPM. The relationship between the ASM and RPM are directly relate and is expressed in percentages known as Load Factors (LF). This LF i s a worry tool used to determine the efficiency and health of the airline. It is necessary to keep these two variables in balance of each other. Southwest Airlines load factors are represented in Figure 1 and 2. RPMLF = ASMMany airlines choose to use the hub network, which induces costly effects in all areas of the airline. It is the point-to-point short haul airline that is capable of keeping costs low and turn profits, Southwest Airlines has proven just that. Southwest Airlines survived the initial years of deregulation, years of circular business cycles that may have led to recessionary and or inflationary periods, and its 25-year