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