In: Economics
If you would recommend a resumption of previous growth rates, what form should this growth take? For example, should it be achieved within the current network or through an expanded network? By means of a greater proportion of long-haul flights (over three hours in length) or not? Why?
If you would not recommend a resumption of previous growth rates, how would you suggest dealing with the consequences of reduced growth, whatever they maybe?
Please answer both parts of the question.
If you would recommend a resumption of previous growth rates, what form should this growth take? Should it be achieved within the current network or through an expanded network? By means of a greater proportion of long-haul flights (over three hours in length) or not? Why?
Yes I will recommend resumption of the previous growth rates. However, this time round, it is important the firm maintains its existing network with focus to developing as opposed to expanding to greater proportion of long-haul flights. With so much to exploit in its current flight network, Southwest Airlines can even double its size without opening a single new station. Nevertheless, the Southwest can still maximize on its reputation to role flights to various hundreds of cities that want to experience, “the Southwest Experience”.
If you would not recommend a presumption of previous growth rates, how would you suggest dealing with the consequences of reduced growth, whatever they may be?
Since Southwest Airlines has already achieved what is arguably the best reputation in the industry. I suggest that the airlines increases its operations in the current routes it is plying. In addition, the company can introduce executive flights with focus of mitigating the lost revenues from change in strategy.