1. Opportunities
    1. Recovery of U.S. Airlines -Domestic boardings grow 2.3% a yr. -General aviation fleet growth will grow 1% a yr.
      1. Acquisition of AirTran Holdings -More employment opportunities -AirTrans Holdings is the parent company of AirTrans Airways which operate 138 aircrafts
        1. Recovery of U.S. Tourism -UNWTO predicts growth of tourism to be between 3% - 4%
          1. International Expansion -Southwest is expanding their operations to Mexico -Will created 85 additional flights to 20 cities in Mexico
  2. Strengths
    1. Firm Operating Strategy -76% of Southwest customers fly non-stop -Average trip of 639 miles with an average time of 1.8 hrs.
      1. Dominant Market Position in U.S. -Largest domestic carrier by total passengers, carrying over 101.3 million passengers
        1. Strong Fleet Operations -Provided service to 68 cities in 35 states throughout the U.S -Nonstop to 438 cities -Owns 537 Boeing 737 aircraft
  3. Weakness
    1. Contractual obligations -By 2014, the company's total contractual obligations are estimated to be $2,510 million -Credit rating dropped from BBB+ to BBB
      1. Declining Profits and Margins -Operating profits have decreased by 42% -Net profits declined by 61%
        1. Heavy Dependance on Passengers -95.6% is derived from passenger transport
  4. Threats
    1. Intense Competition -8 competitors competing for cheaper price, better customer service, costs, frequency, convenience of schedules, flier benefits, efficiency and productivity
      1. Price Volatility in Petroleum Markets -12.6% increase in price per barrel for jet fuel -Oil expense accounts for 30.2% of total operating expense
        1. Regulatory Conditions -DOT has required levels of financial, managerial and regulatory fitness checks. -FAA constantly checks aircraft maintenance and operations.
‎Southwest Airlines‎Opportunities‎Recovery of U.S. Airlines‎-Domestic boardings grow 2.3% a yr.‎-General aviation fleet growth will grow ‎1% a yr.‎Acquisition of AirTran Holdings‎-More employment opportunities‎-AirTrans Holdings is the parent company ‎of AirTrans Airways which ‎operate 138 aircrafts‎Recovery of U.S. Tourism‎-UNWTO predicts growth of tourism to be ‎between 3% - 4%‎International Expansion‎-Southwest is expanding their operations ‎to Mexico‎-Will created 85 additional flights to 20 ‎cities in Mexico‎Strengths‎Firm Operating Strategy‎-76% of Southwest customers fly non-stop‎-Average trip of 639 miles with an ‎average time of 1.8 hrs.‎Dominant Market Position in U.S.‎-Largest domestic carrier by total ‎passengers,‎carrying over 101.3 million passengers‎Strong Fleet Operations‎-Provided service to 68 cities in 35 states ‎throughout the U.S‎-Nonstop to 438 cities‎-Owns 537 Boeing 737 aircraft‎Weakness‎Contractual obligations‎-By 2014, the company's total contractual ‎obligations‎are estimated to be $2,510 million‎-Credit rating dropped from BBB+ to BBB‎Declining Profits and Margins‎-Operating profits have decreased by 42%‎-Net profits declined by 61%‎Heavy Dependance on Passengers‎-95.6% is derived from passenger ‎transport‎Threats‎Intense Competition‎-8 competitors competing for cheaper ‎price, better‎customer service, costs, frequency, ‎convenience of schedules,‎flier benefits, efficiency and productivity‎Price Volatility in Petroleum Markets‎-12.6% increase in price per barrel for jet ‎fuel‎-Oil expense accounts for 30.2% of total ‎operating expense‎Regulatory Conditions‎-DOT has required levels of financial, ‎managerial and‎regulatory fitness checks.‎-FAA constantly checks aircraft ‎maintenance and operations.
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