In: Finance
What trade-offs is Southwest making with their capacity planning approach? Why don’t all airlines use this approach?
Southwest airlines is mainly in business for short distance low cost travelers. If we see their vision and motive is different from other airlines as they have driven by no. of customer not by cost. Basically their are some pros and cons of this airlines such as It never give passenger sit no. or it might be delayed because of huge rush so on that basis it became cheapest airlines in the mind of customer. It comes in low cost, low class airlines. Southwest airlines is good for short run distance but passenger has to travel over long distance such as New York to Chicago they prefer other airlines who gives good hospitality. If other airlines also accept same thinking it create problem in airline industry to travel. In that era southwest airline tagline comes to cheapest airlines it create negative marketing effect on the minder of customer. This are the reason why other airlines not follow the path of southwest airlines.