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