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Topic: Student Questions

Southwest Airlines Weaknesses

Posted by Anonymous on 2/28/2008 at 10:13 PM ET 25 Points
I am aware of the many strengths that Southwest Airlines (LUV) has such as good financials, high market share, good customer relations, good employee relationship, but when it comes to weaknesses I have a more difficult time.

Some weaknesses I thought of are lack of diversity in services offered such as freight or cargo (dependence on passenger revenues-96.3%). Also I notice they are a domestic, low cost airlines so would the absence of international presence be a weakness or would this be more of a opportunity/threat? Also, LUV goes through less popular airports, would the question of convenience to business customers be a weakness?

It's easy to think of strengths with a company such as Southwest Airlines that has been profitable for 35 consecutive years, but weaknesses seem harder to find.
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RESPONSES

  • Posted by Frank Hurtte on 2/28/2008 at 10:28 PM Member
    Weakness...
    Escalating cost of airplane fuel
    Concerns about air safety - ie terrorist attack
    The advanced years of their stewartess crew
    Other airlines catching up to them


    The point is these dont have to be in relationship to the industry. They can be in relationship to the world.
  • Posted on 2/28/2008 at 10:28 PM Accepted
    If there is plenty of growth still available in the specific airports they serve and for the type of customers who like them, then it is a strength that they are focused on that segment. If, on the other hand, it starts to limit growth and they decide they need to add some of the larger airports and they don't have the internal ability or resources to do that, then it is a weakness.

  • Posted by michael on 2/28/2008 at 10:41 PM Accepted
    They use one type of aircraft so if there are ADs with 737s they have a higher percentage of aircraft that need work, therefore greater impact on the operation.

    They don't have baggage agreements with any other airlines so you can't connect to another carrier for an int'l flight.

    Their tickets are not transferable to other airlines.

    If the US economy tanks, they take a bigger hit vs other carriers who can balance their lift overseas.

    Michael
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