Introduction: Southwest Air was founded in 1966 when a group of Texas investors, including Rollin King, M. Lamar Muse and Herbert D. Kelleher, pooled $560,000 to form Air Southwest Company. Formed in 1967, the company was conceived as a commuter airline serving three Texas cities: Dallas, Houston and San Antonio. However, its business was delayed for almost four years due to the barrier to entry from competitors. Since its first flight in 1971, it has literally changed the rules of airline management by becoming the most profitable airline. Southwest starts with the low-cost strategy to penetrate the competition and gain a competitive advantage. Adapted successful strategies: aiming to be low cost Establish international partnerships: according to USA Today 2014 article; Southwest, which has grown to carry more domestic passengers than any U.S. airline, began selling tickets for international flights Monday, marking the start of a significant shift for the low-cost national carrier. Starting July 1, travelers will be able to fly southwest to Aruba, Jamaica and the Bahamas for the first time, creating tough competition with larger carriers serving those areas. However, their expansion is slow. To accelerate their international expansion, they should adopt partnerships, code sharing or joint ventures with international airlines. A multinational contract with a single international airline can save them research and time for many partnerships. Provide attractive loyalty or rewards programs: Although Southwest offers a rewards program, it has some disadvantages2 that can be removed to make it attractive and build customer loyalty to the brand. The biggest disadvantages of their rewards program include the network area covered and since they serve a very limited market, it cannot be corrected except by otherwise expanding to new markets. According to USA Travel News; The Southwest Rapid Rewards program is especially beneficial to travelers based in the Southwest United States who fly frequently to major cities in the United States, Mexico, and • Less frequent flights: For example, if two airlines fly separately, respectively three and twice a day on a shared route, their alliance could fly less than 5 (3+2) times a day on the same route. This may be especially true between each airline's hub cities. In an interview question in a Center of Aviation article; For Mr. Camargo of GOL, the only LCC represented on the panel, the answer is clear. “Yes,” he says, “alliances have value for those migrating to the hybrid world, for example GOL, Southwest Airlines, Air Asia. It's good to have access to global company accounts. There are many high-performance passengers passing through South America. from competitors who already offer economical prices comparable to those in the Southwest. Alliances can help maintain low-cost leadership across the industry while driving global expansion.
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