Should Southwest Airlines expand or reduce?

Question

Should southwest airlines expand such as investing in new plants, equipment or technologies or should it reduce and shutdown operations.Should the organzaiton consider a merger with another organzaiton? Thank you

Answer 1

I think Southwest is run pretty efficiently and their business model and culture is different from the other airlines.  Right now Southwest has to be cautious because their fuel hedges start running out at the end of this year and next year.

Southwest needs to look at the profitability of their flights and determine which ones they should keep and which ones they need to eliminate.  Many airports are trying to entice Southwest Airlines to fly to their airport so Southwest needs to evaluate each opportunity and not just rapidly expand so they can increase revenue.

Answer 2

When their fuel hedge finally runs out, all h**l will let loose within SWA.

It's anybody's guess at that point.