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1、ECP5705–EconomicsofBusinessDecisionsSOUTHWESTAIRLINES:AStrategicAnalysisofPast,PresentandFuturePerformanceSECTIONI-INTRODUCTIONSouthwestAirlinesbringsnewmeaningtothephrase“timeflieswhenyouarehavingfun.”Forthepast32yearstheyhavemanagedtobreathelifeandcreativityintotheair
2、lineindustrybyutilizingauniqueapproachthatincorporateslowfaresandofferingthe“highestincustomerservicesatisfaction.”Whatstartedoutasasmallthree-jetairlinehasnowgrowntobeoneofthelargestairlinesinAmerica,servicingmorethan65millionpassengersayearto59cities(60airports)allacr
3、ossthecountryanddoingitmorethan2800timesaday.Nowanindustryleader,Southwestairlinesproudlyproclaimsthatitis“theonlyshorthaul,low-fare,high-frequency,point-to-pointcarrierinAmerica.”SouthwestAirlinesisthebrainchildofRollinKingandHerbKelleher.Theybegantheairlinewiththeidea
4、thatifyoucan“getyourpassengerstotheirdestinationswhentheywanttogetthere,ontime,atthelowestpossiblefares,andmakedarnsuretheyhaveagoodtimedoingit,peoplewillflyyourairline.”Thathasproventobesageadvice.Asthenamesuggests,theairlinesstartedwithserviceonlyinthestateofTexas.The
5、irmaidenvoyagewasJune18,1971withflightstoHouston,DallasandSanAntonioandby1973,Southwesthadhaditsfirstprofitableyear.In1974,Southwestcarrieditsone-millionthpassengerandin1976beganservicetoothercitiesinTexas:Austin,CorpusChristi,ElPaso,LubbockandMidland/Odessa.By1977,Sout
6、hwestcarrieditsfive-millionthpassengerandwaslistedontheNewYorkStockExchangeas“LUV.”In1978thereweresomeorganizationalshifts.HerbKelleherreplacedLamarMuse,theinterimPresident,CEOandChairmanoftheBoard.HowardPutnamwaseventuallyunanimouslyelectedasthenewPresidentandChiefExec
7、utiveOfficer.KelleherstayedonasthepermanentChairman.Thefirst“outside”citytohaveSouthwestservicewasNewOrleansin1979.Southwestalsointroducedself-ticketingmachinesduringthisyear,makingtravelingeasierforallairlinecustomers.SouthwestalsoestablishedthenicknameofAmerica’s“Comp
8、anyPlane”byproviding“moreplanes,flightsandmoreresponsiveservice.”May20,2003TheWallStreetJournalForthenextdecad
