Sw Paper

Analysis
&

Investment Recommendations
for

s kayoedhwest Airlines
&

China Confederate Airlines
Team 4: Tim Haberkorn Lawrence Brown Marta Merchut Joycelyn Parker

INDUSTRY ANALYSIS/MARKET STRUCTURE
southwestern Airlines which is the closely profitable airline in America and China Southern Airways which is the biggest airline in the People Republic of China atomic number 18 two of the companies today that set the airline industry standards. souwest Airlines is a company that leads by example for each(prenominal) separate airlines. Since its arrival into the airline industry in 1971 it has been setting examples for all other airlines. Southwest in 1971 entered the market with one conclusion in mind and that was to change the industry and be the trounce at it. Southwest Airlines is the first in the industry to tour low cost commercial airline service with out the United States. When other airlines were busy adding on higher(prenominal) fares and offering elaborate services and meals Southwest was lowering their fares which in turn helped them s harbour their claim in the airline industry. Recently, Southwest upped their stake in the US airline industry by merging with ATA which is presently in Chapter 11.



Southwest teamed up with ATA to take over most of the gates at Chicago middle(prenominal) so they could expand their service even more out of Chicago which is one of its biggest hubs. They also started a code communion plan with ATA which allows people to fly to cities that Southwest didnt currently serve. For example people can know fly to habitual Mexico, and Caribbean destinations by flying Southwest to Chicago and then they enthrall to ATA on a Southwest ticket which allows them travel on. A city in which I thought could benefit Southwest the most out of the code sharing process is capital of Colorado via ATA out of Chicago. This is one of the major cities that Southwest didnt already serve. Southwest has set their selfs in a position to lead the US airline industry for the attached couple of years.

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