| 2012 |
| Southwest Airlines
[The Future of Southwest airlines] |
Good Evening board members and staff, I am Megan Wilson, the Chief Executive Officer (CEO) of your company, Southwest Airlines. We have gathered here this evening to take a look at the current position of our company, how we are measuring up to our competition, and what I am proposing we do to continue our success within our future. First I will start off with the mission of our airlines, as many of you know it is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. Our mission to our employees is to be committed ...view middle of the document...
This could not have been done without the help from our six customer support and service centers located in Albuquerque, Chicago, Houston, Phoenix, Oklahoma city, and San Antonio. As many of you know, we are trading under the New York Stock Exchange with the symbol LUV. Below is a direct comparison of our company compared to our competitors as well as the overall industry that we are involved in.
Direct Competitor Comparison | |
| LUV | AAMRQ.PK | JBLU | UAL | Industry |
Market Cap: | 6.10B | 185.40M | 1.35B | 7.61B | 1.12B |
Employees: | 46,227 | 80,100 | 10,243 | 87,000 | 10.24K |
Qtrly Rev Growth (yoy): | 28.60% | 9.10% | 22.20% | 5.50% | 20.30% |
Revenue (ttm): | 16.55B | 24.48B | 4.50B | 37.00B | 3.65B |
Gross Margin (ttm): | 21.04% | 19.79% | 28.55% | 26.73% | 25.71% |
EBITDA (ttm): | 1.49B | 926.00M | 559.00M | 3.72B | 285.90M |
Operating Margin (ttm): | 4.42% | -0.59% | 7.15% | 6.24% | 7.24% |
Net Income (ttm): | 271.00M | -3.20B | 86.00M | 837.00M | N/A |
EPS (ttm): | 0.35 | -9.55 | 0.28 | 2.26 | 0.28 |
P/E (ttm): | 22.80 | N/A | 16.89 | 10.16 | 16.89 |
PEG (5 yr expected): | 8.13 | -0.09 | 0.55 | 1.64 | 2.32 |
P/S (ttm): | 0.37 | 0.01 | 0.30 | 0.21 | 0.36 |
AAMRQ.PK = AMR Corporation |
JBLU = JetBlue Airways Corporation |
UAL = United Continental Holdings, Inc. |
Industry = Regional Airlines |
When comparing our company to our biggest competitor, United Continental Holdings, Inc., and then to the industry, the key figure that we want to look at is our revenue. For the fiscal year ending March 31, 2012, our company had revenues totaling 16.55 Billion which is less than half of United Continental Holdings, Inc. revenues which were 37 Billion. However, the positive side of things are that the industry is currently only at 3.65 Billion which means that we are producing more than 4.5 times the revenue of the average of our industry.
What puts us above our competitors you might ask? It is the personable experience that every single customer has with our staff and the affordable rates and programs that we offer. The first program that we offer to help our customers get the best deal are our Click ‘n Save e-mails which keep everyone in the know about all of our latest sales and special offers. The other program we offer to our customers is our rapid rewards program. Currently our customers are able to earn points off which they can convert to free flights based off of how frequently they fly and also how often they purchase things with our partners such as the restaurants they choose as well as their hotel stays.
Although our company is currently in a good financial position we always need to be one step ahead of...