737-800 to be added to the Southwest fleet

Southwest has ratified agreement with the Pilots union. The Boeing 737-800 will be added to Southwest's fleet. Could this affect the low cost foundation the company was built on? I think that that this could definitely increase costs but I don't know how significantly.

New and Innovative Promotion

Southwest will donate one dollar for every person that "checks in" at any airport that Southwest serves. The donations will go to the make a wish foundation. I think that this is a wonderful organization. And it is also great for companies to give back to the community. It may not directly boost sales but it boosts their reputation.
For full article:
http://www.southwest.com/about_swa/press/prindex.html

Lace Up Your Skates, Denver--the Southwest Rink at Skyline Park is Open for Business!

Work for Southwest?

I would LOVE to work for Southwest. They would definitely be a fun and exciting company to work for. Southwest truly cares about its employees. But since I will officially be a mortgage paying American, I dont forsee a move in the near future.

Thoughts on Chapter 12

Southwest's culture is one of the key elements that differentiates it from other organizations. Southwest thrives off of a fun working environment. I posted videos of rapping flight attendants earlier in the semester.  They also empower their employees to continually improve the southwest experience for its customers. Southwest has been named one of the top places to work for.

thoughts on Chapter 11

Southwest is greatly looking forward to the holiday season. After all that is when most people travel. They are gearing up with new promotions and advertisements. I suggest checking out their website if you are planning to travel this holiday season! :D

Chapter 10 thoughts

From what I have read and researched about Southwest, i think that Southwest has more of a centralized decision making structure. Since it is only domestic, I don't think a decentralized structure would make sense. Southwest does not outsource, again it wouldnt make sense for them to do so.

Southwest gets into the holiday spirit!!!

End of Day Stock Quote

Stocks closed today at $13.75 which is a decrease from my last post, but it is a 0.33% increase from yesterday. :)

Today's Stock Report

Southwest's stock closed at $14.24 today, it continues to increase!!!

TALKS OF INTEGRATION

On October 27, the Southwest filed a statement with the SEC. Southwest and Airtran are discussing a possible integration. Airtran would become part of the Southwest name. I posted the link below if anyone is interested in reading the full filing. Click Form 425.
http://www.southwest.com/investor_relations/fs_sec_filings.html

New Sales Promotion!!!

For 72 Hours Only, Airline Celebrates Halloween with Spooktacular Low Fares
DALLAS, Oct 26, 2010 /PRNewswire via COMTEX/ --
Southwest Airlines announced beginning today it's giving Customers early treats, not tricks, for Halloween! Customers can purchase one-way tickets for $30, $60, $90, or $120 to select destinations based on length of travel. For travel up to 450 miles, fares are $30 one-way. For travel between 451 and 1,000 miles, fares are $60 one-way. For travel between 1,001 and 1,500 miles, fares are $90 one-way. For travel more than 1,501 miles, fares are $120 one-way. These fares are available for purchase today through 11:59 p.m. PDT Oct. 28, 2010, and are good for travel every day except Sundays between Dec. 1, 2010, and Dec. 15, 2010, and between Jan. 4, 2011, and Feb. 16, 2011. To see the list of markets, prices, and to take advantage of these special fares, visit https://webmail.kcpag.com/exchweb/bin/redir.asp?URL=http://www.southwest.com/halloween_offer/?src=PRPRPRNWOWSALE101026.

Today's Stock Report :)

Friday's Stock Report

Southwest Airlines Statement Regarding Tentative Agreement With Pilots Union on the Boeing 737-800

Southwest Airlines Earns 2010 Quest for Quality Award for 14th Consecutive Years

Mergers and Chinese Operations

Southwest doesn't operate in China. The plane that they fly is not designed for that long of a flight. Although they have discussed flying internationally. I think that they will expand in the future. Also, they have not merged or acquired any other airlines. Although many other airlines are merging together.

Outsource/Vertical Integration

I dont think it would make sense for Southwest to either outsource, or vertically integrate. Not just anyone can build an airplane.

Strategy

As I noted previously, Southwest definitely follows a low cost strategy. Southwest is almost always the cheapest flight. They are the walmart of the airline industry.

Brief SWOT Analysis

Strengths of Southwest:

·         Corporate environment

·         Low cost structure

Weaknesses

·         Only fly to limited destinations within the US, although they are continually expanding

·         Smaller than other airlines

Opportunities

·         Expand to global destinations

Threats

·         Economic conditions

·         Other airlines merging

Coffee

Southwest announced that it is giving its "onboard coffee a lift with hazelnut creamer". What a way to diversify.

Funny Advertisement posted by Southwest in the 1992

FUN FACTS ABOUT SOUTHWEST

I read these and just thought they were interesting.

Fun Facts:

• Southwest received 90,043 resumes and hired 831 new Employees in 2009.
• In 2009 Southwest served 63.2 million cans of soda, juices, and water; 14.3 million alcoholic beverages; 14 million bags of pretzels; 90 million bags of peanuts; 17.7 million Select-A-Snacks; and 33.5 million other snacks.
• Southwest consumed approximately 1.4 billion gallons of jet fuel in 2009.
• In 2009, Southwest moved 182 million pounds of cargo.
• The shortest daily Southwest flight is between Ft. Myers (RSW) and Orlando (MCO) (133 miles). The longest daily Southwest flight is between Providence (PVD) and Las Vegas (LAS) (2,363 miles).
• Southwest has 1,164 married couples. In other words, 2,328 Southwest Employees have spouses who also work for the Company.

http://www.southwest.com/about_swa/press/factsheet.html#Leadership

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.


http://www.southwest.com/about_swa/?int=GFOOTER-ABOUT-ABOUT

Rapping Flight Attendant

I just thought that this video was funny!

http://www.youtube.com/watch?v=rhMOnr0GxU8

How Southwest is weathering the economic conditions?

Southwest is doing well considering the economic conditions. Their second quarter earnings were $112 million, an increase from $91 million in last year’s second quarter. They have had many programs in place to promote flying. The cost of fuel is one of their biggest concerns. But they keep their fuel cost down though hedging. Approximately 55% of the third quarter fuel is hedged.
Quote from Gary Kelly regarding second quarter earnings:

“We have made excellent progress toward generating revenue levels sufficient to reach our 15 percent pretax return on invested capital target. Although business demand has not fully recovered, it has strengthened, and consumer travel demand is robust. We experienced record traffic levels during the quarter, despite flat year-over-year capacity, demonstrating a continuing and significant market share shift to Southwest, in part due to our unique and successful 'Bags Fly Free' policy. Further, we led the industry with our year-over-year domestic passenger revenue and corresponding unit revenue performance. It is, without question, our Employees who make it possible for Southwest to remain such a great Company, and I am very grateful for their hard work and steadfast delivery of outstanding Service to our Customers”(http://www.southwest.com/investor_relations/if_news_releases.html)

Increase in hospital and medical transporation

"Southwest Airlines announced today plans to increase the number of hospitals and medical transportation organizations that will receive grants in the airline's 2011 Medical Transportation Grant Program. Southwest has nearly doubled the grant program's 2011 budget with hopes of assisting more than 5,500 patients and family members with their medical related travel needs. Southwest Airlines understands that many patients with chronic or terminal illnesses have to travel for their appointments or treatments. In hope of easing some of this burden, Southwest Airlines created a formal program to assist patients during this difficult time. Through the Southwest Airlines Medical Transportation Grant Program (MTGP), the airline provides complimentary, roundtrip tickets to hospitals and medical transportation nonprofit organizations. The tickets are distributed by the organizations to deserving patients and their caregivers who must travel for medical care." (http://www.southwest.com/investor_relations/fs_news_releases.html)

For the rest of the article click the link.

Stock Price

Stocks are up 0.07 from yesterday closing at $11.51 per share.

Low Cost Strategy

Southwest employs a low cost strategy. The main way that it keeps its costs and prices low is by using a point to point service. Traditional airlines use a hub and spoke service, which is where they fly to a main location and then to their destination. By using a point to point service, Southwest makes short but direct flights; although in recent years they have been flying more long distance flights.

Introduction

The company that I have chosen is Southwest Airlines. I have always found this to be an interesting company. I actually flew for the first time on my honeymoon and it was with Southwest. I hope to inform you about Southwest throughout the semester. I will be posting more information later today.