For those reasons we think
that Delta is not the best target for Slugair. Southwest Airlines: Southwest
Airlines started off as a company with 3 planes serving 3 Texas cities. Today,
it has over 300 planes serving 55 plus cities and has grown to become the 4th
largest U.S. airline in terms of domestic customers carried. According to the
1999 Financial Statements, Southwest Airlines brought in a net income of $474.4
million in net income, $4.7 billion in total operating revenue, and carried a
total of 57.5 million passengers during that year.
It is now a member of the
fortune 500 and is a common stock traded on the New York Stock Exchange. With
over 2,700 flights a day flying 24 hours a day, the company's fleet has an
average of 8.4 years and a cruising speed of 564 miles per hour. In order to
better meet the demands of the customers, Southwest Airlines became the first
airline to establish a home page on the internet and now attributes more than
25% of its passenger revenue from its internet site, www.southwest.com. After
visiting the website, Southwest Airlines must be commended on an impressive
number of customer options. However, booking a flight was slightly unusual.
Airline tickets can only be purchased on a one-way basis. For example, a trip
from Seattle, Washington to Los Angeles between January 29 and February 28 would
cost $122 and a second ticket would have to be purchased at another $122 to
return to Seattle, Washington. As a reward for flying with Southwest Airlines,
customers can earn a free Award Ticket on Southwest Airlines. It just takes 16
one-way flights to receive the Award Ticket, but there is a catch.
The 16
one-way flights must be taken within 12 consecutive months. This can prove to be
fairly frustrating to customers who may have taken 15 one-way flights, therefore
not qualified to earn the Award Ticket from Southwest Airlines. In order to
compete with Southwest Airlines, SlugAir could offer an online reservation
website with a roundtrip ticket purchase option. The Rewards Program with
SlugAir would allow for the credit points to roll over until it is redeemed. Due
to the significantly smaller size of SlugAir operations compared to that of
Southwest, Southwest Airlines may not take action to improve it options. It is
more concerned with larger competition such as Delta, United, and Alaska Air.
This leaves SlugAir with plenty of room to grow as an airline committed to the
advancement of customer safety and satisfaction. Alaska Airlines For nearly 70
years, Alaska Airlines has served the West Coast of North America. Alaska
Airlines has grown from a small regional airline in 1932 to one that carries
more than 12 million customers per year. Alaska's route system spans more than
40 cities and primarily services four countries: Canada, United States, Mexico,
and Russia. Their fleet of 88 Boeing jets are the youngest among all major
airlines and they have earned U.S. airline recognition from Travel & Leisure and
Condé Nast Traveler magazines. It has won the trust of creditors, employees, and
customers by its time performance and its focus on customer service. The Boeing
727, the company's signature aircraft for 25 years, was first implemented in
'79, the same year U.S. skies were deregulated. Alaska was one of only three
carriers that pushed for deregulation, knowing significant growth would be
impossible without it. With the growing success of low-cost/low-fare carriers,
the airline industry changed in fundamental ways in the 90s.
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