Weekly

Key External Factors

Opportunities

Weight

0.0 to 1.0

Rating

1 to 4

Weighted Score

1.There is an overall increase in demand for international travel

0.10

1

0.10

2.Improved utilization of internet for ticketing, marketing, etc.

0.10

2

0.20

3. Latest plane technology, such as the Dreamliner, will boost air travel.

0.06

2

0.12

4.Growth of the elderly generation and Hispanic population are a potential market for Southwestern(SW) Airlines

0.05

1

0.05

5. The deregulation of world sky policies in international countries, such as Canada.

0.05

2

0.10

6.Longer flights are a growing market

0.07

4

0.28

7. The stock market has increased, potentially leading to more money to be spent on business affairs or vacations.

0.05

1

0.05

8.Boeing's new plane models could burn 70% fewer fuels than traditional planes and travel longer distance

0.06

2

0.12

Threats

1.Increased competition in low-cost market is no longer, a niche market for SWA as there is now Spirit, Allegiant Travel, JetBlue, Public Airways, and Frontier

0.08

3

0.24

2.Increase in fuel price could reduce air travel

0.08

1

0.08

3.High likelihood of rising in costs because the cost-cutting areas are almost exhausted

0.03

2

0.06

4.High-speed rail could in future hurt both short and medium term air travel

0.05

1

0.05

5.Increase in airport security occasioned by terrorism threats

0.10

4

0.4

6.Higher ticket taxes

0.05

4

0.2

7.SW competitors are flying newer jets with more technologically advanced features and luxury items

0.03

3

0.09

8. Joint ventures could have an adverse implication on the brand name, such as customer service.

0.04

2

0.08

Totals

1.0

2.22

Key Internal Factors

Strengths

Weight

0.0 to 1.0

Rating

1 to 4

Weighted Score

1.Strong management team

0.10

4

0.40

2.Fourth largest domestic airline

0.05

3

0.15

3.SouthWestern Airline is one of the seven safest airlines in the US

0.08

4

0.32

4.Growth rate higher than industry

0.07

4

0.28

5.Employee loyalty

0.10

4

0.40

6.High public image

0.10

4

0.40

7.Long-term orientation

0.05

3

0.15

8. More departures than any other US airline

0.10

3

0.30

Weaknesses

1. Mostly carries a small amount of cargo and freight

0.04

1

0.04

2.SW only flies one plane, that is the Boeing 737

0.05

2

0.10

3.Do not provide a first class for passengers

0.05

1

0.05

4.SW has the greatest percentage of full-time employees, and this increases the overhead

0.05

3

0.15

5.SW do not accommodate for the severely handicapped

0.05

1

0.05

6.No flights to international destinations

0.08

1

0.08

7.SW does not offer entertainment on their flights, such as audio programs or videos

0.01

2

0.02

8. The big cities, such as Charlotte and Atlanta, do not have the services of SW

0.02

1

0.02

Totals

1.0

2.91