Southwest Airlines

Southwest Airlines - Financial Analysis

Introduction

Recent economic situation are driving many companies to re-consider their lifestyle. Generally, the reason for this re-consideration of the lifestyle is due to low efficiency and low productivity of the company. This essay will focus on Southwest Airlines Financial Analysis so that effective investment decision can be made with future benefit.

Discussion

Overview of the Company

Southwest Airlines is an American low cost carrier airline company headquartered in Dallas, Texas. This company came into existence in 1967 with name Air Southwest Co and in 1971, Air Southwest Co. change their name to Southwest Airlines. The strategic competitiveness advantage of South West is low cost and best customer services. Major competitors of Southwest are Direct (Regional Competition). Direct competition includes, AMR Corporations, JBLU (JetBlue Airways Corporation), UAL (United Continental Holding). In 2012, 46,000 employees are working for Southwest Airlines and they operate 3400 flights per day. During 2013, they have been offering their services to 78 destinations in 39 states (Southwest Airlines Financial data, 2012).

Financial Leadership Profile

Gary C. Kelly

Chief Executive Officer of Southwest Airlines is Gary C. Kelly who is also a Chairman and President. He joined this company in year 1986 as a controller. He was appointed as CEO in 2004 and in 2008 he was serving as Board Chairman and President. Previously he was Executive Vice President & Chief Financial Officer since 2001-2004 while Vice President of Finance and Chief Financial Officer during 1989-2001.

Tammy Romo

Tammy Romo is Chief Financial Officer at Southwest Airlines since 2012. Before this, she was Southwest Airlines Senior Vice President of Planning. In 1991 she became a part of this company as Manager of Financial Reporting (Company Profile & Key Executives, 2012)

Experience of the Financial Leader

Gary C. Kelly has been a Visionary and Democratic Leader. The decisions he takes represents that he want to take southwest to the high ends of the business. He has formulated various strategies that will lead leads southwest towards the peak of success. When Southwest was facing hard time, he employed changes in the company which turn out to be successful.

His stress on Low Fares & Cost Cutting per flight for the customers.

Enchaining short term flights quantity.

Introduction of full meal facilities

Elimination of seating assignments as they serve their each client likewise

As Tammy Romo is new CFO she has her own leadership style which constituite to compnay success through strategic choices compliance that influence ...