Southwest Airlines

INDUSTRY ANALYSIS A Basic Description of the Airline Industry Industry - The nature of the service The Airline Industry is a service industry but due to all the equipment and facilities involved in transportation, it is easy to lose sight of that fact. Airlines perform a service for their customers-transporting them and their belongings (or their products, in the case of cargo customers) from one given point to another for an agreed price. The objective …

…started but also to continue since all of an airline's equipment at some point needs to be replaced. Most equipment is financed through loans or the issuance of stock, rather than purchased outright. Increasingly, airlines are leasing equipment, including equipment they owned previously but sold to someone else and leased back High Cash Flow : Because large airlines own large fleets of expensive aircraft which depreciate in value over time, they typically generate a ------------------------------------------------------------------------ **Bibliography**