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.