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The Airlines Industry of Usa

Essay by   •  January 10, 2013  •  Essay  •  263 Words (2 Pages)  •  1,989 Views

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The airlines industry of USA was encounter a large crisis in the earlier 21st century. In September 11 of 2001, the airline industry was suffered in the terrorist attack, this attack lead to the traveler avoids taking air travel and they find that there are risks with flying, also hurting to the economy of USA. (Harumi I. & Darin L., 2005) Thus, the demand of the industry was plummeting, some of the airline company reported financial difficulties in that period, such as American Airlines, Continental Airlines, US Airways and United Airlines. (Sue Ling Lai & Whei-Li Lu 2005).

Southwest Airlines (Southwest) is the only one airline company that can also generate revenue after the terrorist attack. With regard to the Southwest's report, it shows me that the company still have revenue after 11/9 attack. The company earns $21.4 million in the first quarter; $102.3 million in second quarter ( while US Airways have a loss of $2117 million in 2002. ( and there are $451 million loss of Continental Airlines in 2002.

From the above data, it demonstrated that Southwest was operated success even in the time of economic downturn. According to the Marie-Joelle B. & Roger P. (2008), they mentioned that corporate culture can be defined as a key to the company success or failure. In 2002, most of the airline services provider in US declared economic difficulties, but Southwest still make profit at that time. Obviously, its culture should be more effective than the others.

Thus, I would like to study Southwest and find out how his unique culture can drive its success.



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