Jun
28
Happy Birthday Southwest Airlines!
Today, Southwest Airlines turns 30 since its company went public. It is the biggest low-cost carrier in the US. As Southwest reaches another birthday, the company could turn very vulnerable to the hardships other airlines are having today. One of their biggest protections they have is the fuel hedges. Now these hedges have run out, and they are now just as vulnerable to fuel prices as other airlines. USA Today Article writes:
Southwest, which still has lower costs than most of its rivals and an unparalleled track record of profitability, is weighing responses that could include slowing fleet expansion, partnering with other carriers, and pursuing new sources of revenue such as selling hotel rooms through its website and offering in-flight Internet access.
“There’s a transformation process underway,” said Chief Executive Gary Kelly, speaking in New York at the Fortune Leadership Forum Tuesday. “It’s an intense time. I don’t think our officers have ever worked harder.”
Southwest has the biggest commit to their employees than any other airline out there. They stand behind their employees 100% which has been a huge contributor to where they are at today. If other companies adapted that philosophy, more companies I think would be more successfully.
It is going to be extremely interesting to see how Southwest responds to industry problems. They have always done things different and innovative from other airlines. Anyways, Happy Birthday Southwest! We wish you continued success and many more birthdays to come!