Southwest Airlines International Expansion | free trial sample (2023)


Southwest Airlines is one of the most successful airlines in the US market. Southwest Airlines has successfully differentiated its services from those of its competitors. The company strives to replicate its success in the local US market in the international market. Southwest Airlines' highly motivated employees would give the company a competitive advantage in the international market. Additionally, effective cost management by Southwest Airlines would give the airline a competitive advantage in the international marketplace. However, successfully entering the international market requires Southwest Airlines to change their strategies. Code sharing is one of the strategies Southwest Airlines is using to venture into the international market. Southwest Airlines plans to use William P. Hobby Airport as a hub for international flights.

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Southwest Airlines is one of the leading airlines in the US domestic market. Since its founding in 1967 by Herb Kelleher and Rollin King, the airline has pursued several strategies that have enhanced its competitiveness. Air Southwest was the original name of Southwest Airlines during the airline's inception. In 1971, Lamar Muse, then president of the airline, issued promissory notes that helped raise $1.25 million in additional capital. This provided the company with capital for rapid expansion. Shortly after the issuance of the promissory notes, the company changed its name to Southwest Airlines (Lauer, 2010). Southwest's business model strives to improve service quality and reduce customer service costs. Operating a single fleet of Boeing 737s allows the company to increase efficiency and reduce maintenance costs (Doganis, 2006). Southwest has pursued multiple strategies that have resulted in the creation of a niche market in which the company is the dominant player. The airline achieved this by reducing some operations and modernizing others. The company's success in the domestic US airline market forced the company to consider replicating its domestic success in international markets.

Features of the aviation industry

Airlines differentiate their services based on the size and type of cargo carried. Low-cost carriers, air cargo carriers and regional airlines are the main categories of airlines. Low-cost carriers use their ticket prices to differentiate their services. On the other hand, regional operators use the convenience and quality of their services to differentiate their services. Air carriers specialize in the transportation of cargo. Airlines in each category can use different strategies to differentiate their services. A common feature of the above categories is the fact that all airlines have a hub from which to base their operations (Vasigh, Tacker & Fleming, 2008). The above characteristics refer to local and international airlines.

Some of the key competitive factors in the airline industry are airline cost structure, service reliability, service locations and workforce. People generally expect low-cost providers to deliver low quality. On the other hand, airlines that charge high prices for their tickets need to provide quality services (Vasigh, Tacker & Fleming, 2008). Although Southwest Airlines is a low-cost airline, the company offers quality services. This improves the airline's competitiveness. Southwest Airlines' ability to provide quality service at low cost would increase the airline's competitiveness as it ventured into the international market. The company can create a niche market to attract loyal customers. However, the company would face stiff competition from other airlines already in the market.

organizational structure

Southwest Airlines has a lean organizational structure. The ease of the organizational structure facilitates cross-functional communication between the company's employees and management. Southwest Airlines lean organizational structure allows employees to share their opinions with their supervisors or even the President of the company. In addition, the lean organizational structure of airlines facilitates easy monitoring of employees by their department heads, who maintain direct contact with employees (Jones, 2012).

Southwest empowers its employees to make decisions that improve the efficiency of their operations without asking their supervisors for permission. Empowerment increases employee motivation and productivity. In addition, Southwest Airlines offers its employees access to unlimited information about the company's operations and financial viability (Jones, 2012). Access to information allows employees to get a clear picture of airline operations. This allows them to determine how their performance affects the overall performance of the organization. It makes employees feel important to the company.

Human Resources Management Policies

Southwest Airlines strives to find innovative ways to serve multiple stakeholders while ensuring the airline remains profitable. The company's human resources department has several policies to help select the right people for the company. Southwest Airlines hires employees based on their attitude and then trains them to acquire the necessary skills that would enable them to work effectively within the company. Southwest Airlines strives to keep employees happy so they can be more productive. In keeping with the Southwest Airlines philosophy, meeting the needs of employees enables them to meet the needs of customers. The airline puts the interests of its employees before the interests of customers. Southwest Airlines strives to create a harmonious work environment where employees feel part of a big family. The airline has several programs that reward high-performing employees (Hayton, et al., 2012).

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Because the airline industry is a service industry, employees are a key competitive factor. This requires companies to have highly qualified employees. In addition, airlines make sure that they have strategies in place that improve employee motivation. These factors improve the quality of service offered by airlines (Belobaba, Odoni & Barnhart, 2009). Southwest Airline has several employee programs aimed at improving employee engagement. Improved employee motivation enables them to provide quality services. Southwest Airlines' ability to motivate its employees while controlling its operating costs can give the airline a competitive advantage over other airlines in the international marketplace.

(Video) Southwest Airlines - Why They're Successful

marketing strategies

Southwest Airlines employs a risk mitigation marketing strategy. The company guarantees that they promise their customers what they have to offer. As a result, customers do not have false expectations. The airline promises cheap tickets and quality services. Southwest often under-promises and over-delivers on many services. The low price of Southwest Airlines tickets has led customers to associate the company with low fares. The airline uses ticketless travel to simplify its services (Wood, 2008).



Southwest Airlines uses a standardized aircraft fleet. The standardized fleet reduces aircraft maintenance and other operating costs (Doganis, 2006).

Southwest Airlines has a strong, easily recognizable brand. The company has been in operation since 1971 (Noble, 2007).

Southwest has a dedicated workforce. The airline puts the interests of its employees first. This improves their engagement and productivity (Simons, 2010).


Southwest Airlines does not have a First Class section. As a result, you lose customers who want top-notch service. In addition, Southwest Aircraft does not offer meals on board (Potts, 2002).

Southwest Airlines has several strategies to reduce labor costs. The airline requires its employees to perform multiple jobs at the same time (Hill & Jones, 2009). This creates a stressful work environment.

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Southwest Airlines focuses on its niche market. The airline is not heavily involved in the cargo business. Expansion into this market segment would increase the airline's profitability.

The growth of the Latin American market promises rapid growth for Southwest Airline. The company benefits the most from the growth of this market due to its ability to offer low prices and high quality services.

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The aviation industry faces intense competition. United Airlines is one of the biggest competitors in the international market (Vasigh, Tacker & Fleming, 2008).

Entering the international market requires the airline to comply with the regulations of various governments. This can pose several challenges for the airline (Vasigh, Tacker & Fleming, 2008).

International expansion strategies

Despite success in the US domestic market, Southwest Airlines focuses on short-haul routes. The average flight duration of Southwest Airlines flights is 425 miles (Piercy, 2012). To support the airline's continued growth, Southwest Airlines must venture into long-haul and international markets. In doing so, however, the airline would venture into markets where other airlines dominate. American Airlines and United Airlines are among the dominant airlines in this market segment. In order for Southwest Airlines to effectively expand into international markets, it must form alliances with other companies. Alliances allow airlines to share airport facilities and integrate their services. Alliances are critical to profitability in international markets.

However, expanding into international markets can present several challenges for Southwest Airlines. Entering the international market forces the airline to use larger aircraft to ensure profitability. Southwest Airlines only uses Boeing 737 aircraft, which have a small capacity. A change in aircraft type can increase a company's operating costs. Due to the long flight times of international flights, Southwest would also need to introduce in-flight entertainment. This would force the airline to increase ticket prices. These factors can change the airline's image as a low-cost airline. In addition, the nature of international markets makes it difficult for foreign airlines to dominate domestic flights in another country. Entering international markets may force Southwest Airlines to use hub-and-spoke planning for international routes. This would pose several challenges for the airline as they use point-to-point scheduling on other routes.

Southwest is pursuing an expansion strategy through code sharing. The airline has entered into negotiations with Canada, England, Mexico and several island countries in the Caribbean. Volaris is one of the airlines that shares the code with Southwest Airlines (Esterl, 2009). Code sharing allows Southwest Airlines to share the routes of these airlines.

Penetrating international markets would be beneficial for Southwest Airlines. Code sharing would allow the airline to share customers with other airlines. This would reduce the company's need to establish its brand for new customers. Southwest Airlines could also use the acquisition to expand into international markets. Very few low cost airlines fly internationally. Therefore, there is limited competition on international low cost flights. Some of the low cost airlines that fly internationally are JetBlue and Virgin Atlantic. Therefore, Southwest Airlines would join these airlines to offer services to budget travelers.

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Southwest Airlines plans to use William P. Hobby Airport as a hub for international flights. The airport meets federal standards for international airports. Additionally, the airport's expansion plans would facilitate further growth for Southwest Airlines. Southwest Airlines would use the airport to serve the Latin American market. This market has continued to grow over the past decade. Therefore, it presents a good opportunity for Southwest Airlines to profitably enter the international market. United Airlines is one of the leading American airlines serving the Latin American market. Therefore, Southwest Airlines has to adjust to strong competition from the airline. According to United Airlines, Southwest's presence in the international market could make some routes unprofitable.

Southwest Airlines has already submitted a proposal to the City of Houston detailing its expansion plans. If Southwest Airlines receives approval from the City of Houston, Customs and Border Protection will provide several resources to facilitate Southwest Airlines' international expansion. Operating international hobby flights would have a significant impact on Houston's economy. This can lead to a significant reduction in ticket prices. This is because Southwest Airlines usually offers cheap tickets. Southwest Airlines intends to increase traffic in the market with low fares.

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Southwest Airlines intends to use the notion that it is an underdog in the airline market. This would improve the company's image with customers who do not prefer the often inefficient big airlines. This would help increase your competitiveness in the market.


Southwest Airlines intends to use its domestic success as a platform to enter the international market. The airline used various strategies to create a niche market from which to source its customers. However, success in the international market requires the airline to formulate different strategies. It is important for the airline to ensure that the strategies do not diminish the strength of the company's brand.


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Doganis, R. (2006).The airline business. London: Routledge.

Esterl, M. (2009).The CEO of Southwest Airlines flies through the sky unknown.Wall Street Zeitung🇧🇷 Network.

Hayton, J., Biron, M., Christiansen, L.C. & Cuvas, B. (2012).Global Human Resource Management Manual. London: Routledge.

Hill, C. & Jones, G.R. (2009).Strategic management theory: an integrated approach. Mason, OH: Cengage Learning.

Jones, P. (2012).Catering de voo. Burlington, MA: Elsevier Butterworth-Heinemann.

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Lauer, C. (2010).Southwest Airlines🇧🇷 Santa Barbara, CA: ABC-CLIO.

Edel, P. (2007).Public Relations Assessment: A Best Practice Guide to Public Relations Planning. Londres: Kogan Page Publishers.

Piercy, N. (2012).Market driven strategic change. London: Routledge.

Potts, JF (2002).Customer-Oriented Traffic: A Summary of Traffic Practice🇧🇷 Washington, DC: Transportation Research Council.

Simons, R. (2010).Seven Strategic Questions: A Simple Approach to Better Execution. Boston, MA: Harvard Business Press.

Vasigh, B. Tacker, T. & Fleming, K. (2008).Introduction to air transport economics: from theory to application. Surrey: Ashgate Publishing, Ltd.

Madeira, R. (2008).In the Value Zone: Gaining and Maintaining Competitive Advantage. Lanham, MD: University Press of America.


How can Southwest Airlines expand internationally? ›

American Airlines and United Airlines are some of the dominant airlines in the market segment. For Southwest Airlines to expand into international markets effectively, it should form alliances with other companies. Alliances enable airlines to share airport facilities and integrate their services.

What are the four components for the Southwest Airlines strategy? ›

  • Compelling Brand Appeal.
  • Best People in the airline industry.
  • Outstanding Customer Service and Hospitality.
  • Low fares with Transfarency ®
  • Industry-leading frequent flyer program.

How would you describe the competitive priorities of Southwest? ›

Any company operating in the airline industry must maintain and strengthen a set of competitive advantages that differentiate it from its competitors. Southwest Airlines' business model is based on extremely efficient operations, low-cost pricing, and innovative logistics solutions.

What does Southwest mean by documentation required? ›

A security document includes your confirmation code, name, and flight information; it also confirms that you have a reservation. A security document also allows you to go through TSA Security Checkpoint. It is not a boarding pass, but can be issued in place of a boarding pass when circumstances warrant.

What should I do to expand internationally? ›

  1. Consider international trade as a growth opportunity.
  2. Investigate franchising for global expansion.
  3. Evaluate your competition's international business.
  4. Develop a master international marketing plan.
  5. Dedicate personnel, a budget, and appropriate procedures.

Is it hard to get approved for Southwest? ›

There isn't a published minimum credit score for a Southwest credit card. It's possible that you can get approval with a score in the low to mid-600s. Trying with a score of 670 or above means you are most likely to get instant approval. Like any credit card application, other factors can affect your approval decision.

What are the 3 main segments of aviation? ›

The Main Pillars of Aviation

However, there are a few different sectors of aviation, with three being the main pillars that uphold the aviation industry as a whole: commercial, general, and military aviation.

How does Southwest value their employees? ›

Culture and Employee Experience

Employees are treated with the same concern, respect, and caring attitude within our organization that they are expected to share externally with every Southwest Customer.

What makes Southwest different from just any airline? ›

Known for its flexible ticket policy and two free checked bags for every passenger, Southwest doesn't charge the fees that come with flying on other airlines. Three major U.S. airlines — American Airlines, Delta Air Lines and United Airlines — dropped change fees on many flights in 2020.

What are the 4 competitive priorities? ›

It should be noted that each of the four competitive priorities (quality, cost, flexibility and delivery) contributes to improving and sustaining the competitive advantage of a firm, since such priorities are all linked to its corporate and functional strategies.

What are the 5 competitive priorities? ›

There are five common groups of competitive priorities namely cost, quality, time, flexibility and innovation. Finding the right competitive priorities does not happen overnight, many companies struggle for years when making decisions regarding different competitive priorities.

How do I nail an interview with Southwest? ›

Southwest Airlines Interview Tips
  1. Do as much research as you can about Southwest Airlines. The annual report is always a good place to start.
  2. Be prepared for situational type interview questions.
  3. Do not dress casually for the interview.
  4. Be sure to review the job description and find the key skills they are looking for.

Why is access denied on Southwest? ›

Re: Permission to access your site denied

If you're having trouble there, try deleting your cookies and/or using another browser, or connecting via the Southwest app.

How long does it take for Southwest to review your application? ›

Candidates that successfully complete that step will be invited for an in-person interview, and hiring decisions will be made after that. It is normal for it to take 4-6 weeks (or longer) to receive contact from our Recruiters, as they are hard at work reviewing many resumes!

What are the five reasons to expand internationally? ›

5 good reasons to expand internationally
  • Increase your turnover. Going international is an excellent opportunity to reduce your risks and increase your revenues. ...
  • Expand your customer portfolio. ...
  • Improve your brand image. ...
  • Better access to local talent. ...
  • Competitive advantage.

What is the easiest form of international expansion? ›

Exporting is a typically the easiest way to enter an international market, and therefore most firms begin their international expansion using this model of entry.

What credit score do you need for Southwest? ›

Bottom line. In order to get one of the Southwest Rapid Rewards® credit cards, you'll probably need at least a FICO® score of 670.

Does Southwest Airlines negotiate salary? ›

Negotiate Salary

If you think you and your skill set should be valued higher than your offer, negotiate your salary! 10% of men and 14% of women at Southwest Airlines said they negotiated their salaries. On average, Southwest Airlines employees earn $126,129.

Does Southwest require drug test? ›

Yes, Southwest Airlines conducts a drug test prior to an offer of employment. In addition, Southwest Airlines reserves the right to drug test an employee at any time if substance use is suspected or if a workplace accident occurs.

What are the 5 P's in aviation? ›

One such approach involves regular evaluation of: Plan, Plane, Pilot, Passengers, and Programming. The point of the 5P approach is not to memorize yet another aviation mnemonic. You might simply write these words on your kneeboard, or add a reference to 5Ps to your checklist for key decision points during the flight.

What are the 3 C's in aviation? ›

Hickox: The three C's pertain to cockpit, cabin, and crew, aligned with the three main domains on board the aircraft.

Why are Southwest employees so happy? ›

Southwest's philosophy is happy employees = happy customers = happy investors. Southwest puts their employees first by: Empowering employees to do the right thing for the customer and for the company. Ensuring employees have the latitude and support to do what they believe is right.

What is Southwest mission statement? ›

To connect People to what's important in their lives through friendly, reliable, and low-cost air travel.

What is unique about Southwest Airlines Culture? ›

Three vital elements of our Culture are appreciation, recognition, and celebration. In order to promote and foster a fun and healthy work environment, we work to appreciate every Employee through Local and Companywide Culture Committees.

How many free flights do Southwest employees get? ›

Employees have free, unlimited travel privileges for themselves and eligible dependents on Southwest Airlines. Eligible dependents include spouse or committed/registered partner, eligible dependent children under 19 years old (or up to 24 if a full-time student), and parents.

What is the highest paying job at Southwest Airlines? ›

The highest-paid job at Southwest Airlines is a senior software engineer. These professionals earn an average salary of $120,951, which works out to about $ 58.15 per hour. The top 10 highest-paid jobs at Southwest Airlines are: Senior Software Engineer – $120,951.

Which is better Delta or Southwest? ›

Winner for most flight options: Delta. The number of routes and destinations is important when trying to decide if you want to fly Delta or Southwest. Delta's footprint nearly triples Southwest's.

Who is Southwest's biggest competitor? ›

1. American Airlines. American Airlines [NASDAQ: AAL] is an American multinational airline holding company headquartered in Fort Worth, Texas.

Why is Southwest the best airline to work for? ›

Southwest Airlines is more flexible than most other large airlines. Southwest is the only large U.S. airline that is also a low-cost carrier. Southwest Airlines' strategy emphasizes recruiting and retaining motivated employees. Southwest continues to improve its business model and practices.

What are competitive priorities examples give atleast 2 correct answers? ›

Examples of competitive priorities include low cost, consistent quality, and on-time delivery. Operations (manufacturing) is one of the primary activities of the value chain (Porter, 1990).

What are the 3 basic competitive strategies? ›

According to Porter's Generic Strategies model, there are three basic strategic options available to organizations for gaining competitive advantage. These are: Cost Leadership, Differentiation and Focus.

What are the three 3 strategies for competitive advantage? ›

Building a Competitive Advantage

Michael Porter, the famous Harvard Business School professor, identified three strategies for establishing a competitive advantage: Cost Leadership, Differentiation, and Focus (which includes both Cost Focus and Differentiation Focus)[1].

What are the 4 operations strategies? ›

Operational Strategy – What is it and why develop one?
  • Market penetration.
  • Product strategy.
  • Customer engagement strategy.
  • Supply chain strategy.
3 Jul 2022

What are the 3 types of competitive explain each? ›

There are three primary types of competition: direct, indirect, and replacement competitors. Direct competitors are the most recognizable variety of competitors, while the most difficult type to identify can be the replacement competitors.

What is the 5 strategy? ›

Mintzberg developed his 5 Ps of Strategy as five different definitions of (or approaches to) developing strategy. He first wrote about the 5 Ps of Strategy in 1987. Each of the 5 Ps is a different approach to strategy. They are Plan, Ploy, Pattern, Position, and Perspective.

How can I successfully pass an interview? ›

Tips for a Successful Interview
  1. Be on time. ...
  2. Know the interviewer's name, its spelling, and pronunciation. ...
  3. Have some questions of your own prepared in advance. ...
  4. Bring several copies of your resume. ...
  5. Have a reliable pen and a small note pad with you. ...
  6. Greet the interviewer with a handshake and a smile.

How can you disqualify you from an interview? ›

How to Disqualify an Interviewee
  1. Negativity. Candidates who exhibit negativity during the interview may not be ideal for your organization, as they may not have the proper attitude you desire. ...
  2. Poor Appearance. ...
  3. Lack of Preparation. ...
  4. Difficulty With Open-Ended Questions.

How can I solve Access Denied? ›

Right-click the file or folder, and then click Properties. Click the Security tab. Under Group or user names, click your name to see the permissions that you have. Click Edit, click your name, select the check boxes for the permissions that you must have, and then click OK.

How do I unblock access denied? ›

The “Access Denied” error appears when your browser uses different proxy settings or VPN instead of what's really set on your Windows 10 PC.
You can try:
  1. Clearing your browser cookies and history.
  2. Turning off VPN and VPN extensions.
  3. Disabling your proxy.
  4. Switching to a premium VPN service.
  5. Resetting your browser data.

What does Southwest Airlines look for in background check? ›

Keep in mind that Southwest Airlines will perform a background check prior to an offer of employment. This background check will look for misdemeanor and felony convictions at both the state and federal levels.

Can application under review meaning rejected? ›

“Under review” does not mean either accepted or denied. It means the person who could make the decision has not decided.

How long is Southwest Airlines Virtual interview? ›

The Southwest Airlines interview is a 1-day process conducted at their Headquarters facility located at 2702 Love Field Drive, Dallas, TX 75235. The formal interview lasts approximately 5 hours in total and is broken up into 2 groups; 1 morning and 1 afternoon.

Will Southwest expand to Europe? ›

"Right now, we do not have any European expansion plans," Watterson said. "We do have the right within our collective bargaining agreement with our pilots to have some limited amount of codesharing." The codesharing would work both ways.

Does Southwest operate internationally? ›

We have low fares to tropical and international beach destinations; it's true. Find low fares on flights to Mexico, Central America, and the Caribbean.

In what ways is Southwest trying to improve its competitive advantage? ›

Southwest Airlines' competitive advantage also comes from its low operating costs. The company is always looking for ways to cut costs to keep ticket prices low. This benefits the airline in two ways: it helps it to be more profitable, and it builds customer loyalty.

Will Southwest expand to Canada? ›

By the end of 2022, all except for one of America's top six airlines will be flying to Canada. The notable hold-out is Southwest Airlines.

Why does Southwest not fly to Europe? ›

Southwest is the biggest airline at BWI. Southwest Airlines Co. has the largest Boeing 737 fleet in the world and that's why it's unlikely the airline will begin flights to Europe or add other Transatlantic flights any time soon.

Does Southwest fly to Paris? ›

The biggest downfall of Southwest is that they don't fly anywhere else. You can't cross the Atlantic on Southwest to visit Paris or London.

Will Southwest extend Status 2022? ›

To extend Member's existing A-List or A-List Preferred tier benefits status through December 31, 2022, Member must fly two qualifying round trips (or four qualifying one-way) revenue or award flights between August 19, 2021 and November 19, 2021 (the “Promotion Period”).

Can I check in online for an international flight on Southwest? ›

You can check in for international flights and receive your assigned boarding position via our mobile website/apps, though you will not receive an actual boarding pass until you check in at the ticket counter or kiosk upon arrival at the airport and have your passport verified.

Does Southwest have international fee? ›

No foreign transaction fees.

What makes Southwest different from other Airlines? ›

Known for its flexible ticket policy and two free checked bags for every passenger, Southwest doesn't charge the fees that come with flying on other airlines. Three major U.S. airlines — American Airlines, Delta Air Lines and United Airlines — dropped change fees on many flights in 2020.

Where does Southwest not fly? ›

Unlike most other U.S. airlines, it does not fly outside the continent of North America (except to Hawaii), and it does not fly to Canada due to its payment system not being set up for Canadian dollars (however, Southwest does market Bellingham to passengers in the Vancouver and Southern BC area as a low cost ...

Which airline is best for Canada? ›

The Best Airlines in Canada in 2022
  • Air Canada. Air Canada is hands down the largest domestic and international airline in Canada today, both in respect to fleet size and the number of passengers it carries. ...
  • WestJet. ...
  • Air Transat. ...
  • Jazz Aviation. ...
  • Central Mountain Air. ...
  • Northwestern Air. ...
  • Sunwest Aviation. ...
  • Porter Airlines.

What cities is Southwest adding? ›

Breaking: @SouthwestAir adds nonstop service from Kansas City! Effective 4/2023 Albuquerque and Indianapolis will be restored (COVID), and frequencies will be added to Atlanta, Los Angeles, San Diego and St. Louis. Effective 6/2023 frequencies to Las Vegas, Orlando and Pensacola.


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