Southwest Airlines was developed to meet the growing need for effective local air transportation between major growth cities in Texas. Rollin W. King found a niche opportunity to cultivate a business to cater to the combined population of Texas' four major cities, which data showed was 4,856,000. Additionally, a large hub airport was under construction under the name Dallas-Fort Worth Regional Airport, which would serve two occupied cities. The airport was primarily controlled by Braniff International Airways and Texas International Airlines. These competitors have demonstrated that entering a seriously competitive business is difficult for Southwest Airlines. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original EssayBraniff served an international market that included major cities in the United States, while TI focused on the local aspect of the market. These two companies were at odds over logistical issues related to combining ports for long- and short-flight aircraft, which resulted in resistance and legal problems for years to come. Braniff earned a poor reputation for its punctuality and eventually became commonly known as the world's largest non-scheduled airline." This was not seen as likely and although Braniff held 86% of the air traffic share in the region, there was certainly room for competition to make up for the mistakes of its dominant predecessor. Furthermore, a tri-system was implemented to stimulate more effective use of the main airport hub that the three companies wanted to coexist. Muse, a financial advisor, advised King of these shortcomings of his competitors and where improvements needed to be made to run the business more efficiently in terms of revenue. The turnaround for Southwest began with King and Muse looking to the West Coast and exploring new/used jets through high-pressure negotiations to find more capital to grow the business. The Boeing Company eventually contracted to sell four twin Boeing 737 jets at a price of $16.2 million. To meet the capital-raising deadline, Southwest implemented intense marketing and advertising to maximize profits and book every seat on every flight. They have hired staff with a good attitude and innovative contribution to the service process. They also created a fun atmosphere in the cabin of their Boeing 737 airplanes to standardize cleaning and maintenance. Their ads touted things like “Finally a $20 bill you won't mind” and “a fare to remember.” These ads attracted a pool of eager customers to experience a reinvented airline. Southwest was known for efficiently turning around planes to get the most use out of them, and there were no assigned seats, so customers were also encouraged to be on time. These two objectives worked well together and their flights developed an efficient reputation. Southwest also discovered the benefit of having frequent flight schedules and shorter routes, which allowed its Boeing 737s to receive optimal flight time to pay for themselves. Southwest focused on less populated airports and encouraged carry-on baggage to achieve its primary goal of efficiency. By providing only soft drinks and peanuts, inventories and perishables were reduced, allowing for a more streamlined business model. Under these conditions, Southwest has effectively created a revolutionary business model for the airline industry, redefining the.
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