Southwest Airlines案例分析

Who We Are and What We Do
Major domestic airline that provides short haul, high frequency, point-to-point, low fare service point-toIncorporated in Texas and commenced Customer Service on June 18, 1971 with 3 Boeing 737 aircrafts serving 3 cities – Dallas, Houston, and San Antonio Today, SW operates over 400 Boeing 737 aircrafts in over 59 cities Lowest operating cost structure in the domestic airline industry and consistently offers the lowest and simplest fares
New and Improved
The mission of Southwest Airlines is to provide excellent customer service and timely air travel at an affordable price for markets in the United States. We commit ourselves to the highest standards of integrity in doing what is best for our passengers, the airline industry, our employees and our stockholders. By using the latest technology in engine maintenance, we ensure safety, efficiency, and keep fuel emissions below governmental regulations. Through this mission, we at Southwest ensure high company spirit and long term financial prosperity.
How We Began
32 years ago, Rollin King and Herb Kelleher got together and on a cocktail napkin they came up with a simple notion that turned into the 4th largest airline - If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline.
Innovation
1st airline to offer a profit-sharing plan to profitemployees beginning in 1979, employees now own about 10% of company stock 1st major airline to offer “ticketless” travel systemsystem-wide 1st major airline to enter information superhighway by creating its own web page 1st airline to offer online booking
Southwest Profitability Ratios % Gross Margin Net Profit Margin Management Effectiveness % Return on Assets Return on Investment Return on Equity
Industry
* From
Financial Condition verall
Posted a profit for 31st consecutive year Airline industry as a whole suffered a net loss for 3rd consecutive year
* From 2003 Annual Report
Key Financial Ratios
Southwest Valuation Ratios P/E Ratio Price to Sales Dividends Dividend Yield Payout Ratio Growth Rates % Sales vs 1 Yr Ago EPS – 5 Yr Growth Financial Strength Quick Ratio Total Debt to Equity 24.72 1.84 .14 3.18 7.52 -.26 1.16 .30 Industry 23.71 1.24 .27 1.88 12.79 -2.27 1.20 1.19 Sector 25.41 1.62 1.38 23.05 8.27 6.80 1.18 .59 S&P 500 24.01 3.33 2.04 26.78 11.90 12.15 1.26 .85
Southwest Airlines Co.
Headquarters: P.O. Box 36611 2702 Love Field Drive Dallas, TX 75235 Phone: 214-792-4000 214-792Stock Symbol: LUV (NYSE)
all graphics and information found on Southwest Airlines website at or
* From 2003 Annual Report
Net Income increased 83.4% in 2003 Operating Revenue increased 415 million (7.5%) 400 million (7.5%) increase in passenger revenues 5.6% increase in revenue passenger miles 4.2% increase in added capacity as measured in available seat miles Addition of 13 aircrafts in 2003
Strong Financials (End of 2003) - 1.87 billion in cash on hand - fully available bank revolving credit of 575 million - unmortgaged assets of over 5 billion - debt to capital ratio of less than 40% (includes leases as debts)
Sector
S&P 500
Existing Mission Statement
The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.
Case Prepared By: Corey Daigle, Seth Fraser, and Megan Foreman
Overview How we got here Southwest Airlines – Who we are, What we do, and
Mission and Vision Internal Assessment - Financial Condition - IFE Matrix External Assessment - EFE Matrix - CPM Matrix Strategy Formulation - SWOT Matrix - Space Matrix - IE Matrix - Grand Strategy Matrix - QSPM Matrix - Matrix Analysis Strategic Planning for the Future EPS/EBIT Implementation 2004 Financials Southwest in the News
Fun Facts
In 2004, SW served: 49 million cans of soda, juices, and water 8.1 million alcoholic beverages 3.3 million bags of pretzels 95.3 million bags of peanuts
Vision Statement
To provide the most affordable, reliable, and comfortable air transportation in the world.
Delta’s Vision
Since the founding of Delta Air Lines, our company has stood for safe and reliable air transportation, distinctive customer service, and hospitality from the heart. Our vision is for Delta to build on its traditions and always to meet our customers’ expectations while taking service to even higher levels of excellence. We are a leader in a business we know best— best— airline transportation. We intend to be an even greater company and will focus our time, attention, and investment on building that leadership. We are dedicated to being the best airline in the eyes of our customers. We will provide value and distinctive products to our customers, a superior return for investors, and challenging and rewarding work for Delta people in an environment that respects and values their contributions.