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Southwes

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Submitted By apple312
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Introduction Southwest Airlines was founded in 1967 by Rollin King and Herb Kelleher in vision of creating an affordable airfare to public. They had the idea that if they could offer the speed and convenience of air service at a price competitively near that of driving or bus service then they could win over customers. According to frequently-cited story, King described his vision concept to Kelleher over dinner by drawing on a paper napkin a triangle symbolizing the routes, Dallas, Houston, and San Antonio, later became known as “The Golden Triangle”. This image is still found today on their website. In November 27, 1967, with $500,000 in the bank account, Kelleher filed the application with the Texas Aeronautics Commission (TAC) with only three Boeing 737 aircraft. The original name of the company was Air Southwest co. (Southwest Airlines, 2012) In March 1971, Lamar Muse joins Air Southwest as president and sold promissory notes raising an excess of $1.25 million to cover aircraft and startup cost and changes its name to Southwest Airlines Co. (Southwest). In September 29, 1971, Southwest receives it fourth aircraft. The primary aspect of the firm’s business model is to eliminate the unnecessary frills offered by competitors, thus reducing the cost to customers. Southwest also reduced cost by focusing on a smaller number of routes and only flying one type of aircraft, the Boeing 737. Choosing only to fly one type of aircraft was a very strong and successful strategic choice made by Southwest. (Southwest Airlines, 2012) Although Southwest is known as one of the top airline in the industry today, it struggled to succeed in the beginning. In its first years, competitor airlines Braniff, Trans-Texas, and Continental Airlines initiated legal actions, thus began three-year legal battle. Eventually, Air Southwest (still operating under this name at this time)

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