External Audit of Southwest Airlines Co.
Opportunities of Southwest Airlines Co
1. There is an expected world tourism growth of up to 4.3% on an annual scale hence the airline must take advantage of this opportunity for growth as well.
2. The accessibility of the Mexico, Cancun and the Caribbean region following the AirTrans merger bring the international opportunities that Southwest Airline can take advantage of.
3. The ATA domestic code-sharing treaty also breaks down barriers and bureaucracies for ease of trade.
4. The repeal of the Wright Amendment also works for the good of the airline in its operations.
5. With the down cycle of the economy since 2009, there has increased the potential for profit for this airline since people have become more cost sensitive than before.
6. The lower interest rates in the economy than before also works for the advantage of the airline
7. There has been a rise in the passenger revenues by 7.3% from 2010 hence presenting a vibrant market for the airline.
8. There has been an oil price drop from $150 a barrel to less than $100 a barrel hence lowering the cost of operations.
9. The regional jets have changed significantly the short distance markets that were left by the major airlines...
References
Adamkasi, (2017). Porter’s Five Forces Analysis Model of Southwest Airlines. https://www.porteranalysis.com/porters-five-forces-analysis-model-of-southwest-airlines/
CAPA, (2014). Southwest Airlines SWOT: Financial strength is mainstay, but cost and culture challenges loom large. https://centreforaviation.com/insights/analysis/southwest-airlines-swot-financial-strength-is-mainstay-but-cost-and-culture-challenges-loom-large-187714
Moran D, (2018). Diane Moran’s audit of Southwest Airline. http://dianemmoran.com/wp-content/uploads/2013/12/Southwest-case-study-audit-12.1-.pdf
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