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Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1119 |
Essay's paper body
The return on assets (ROA) of Southwest airlines is higher than its competitors. Its return on assets and return on investments as per the five years average were 3.4% and 4.3% respectively higher than the negative industry averages of 3.5% and 3.9% for the same period.
Weakness:
Operational drawbacks:
? Southwest airlines has operations only to 64 cities in 32 states...
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As it operates mostly point to point services, the places it serves are limited when compared to other airlines that operate on a hub which might limit its ability to expand.
Passengers’ dependency:
? Revenue is totally depended on passengers’ transportations (96.3% in 2006). This has more risk than other companies as ticket sales are more demand elastic when compared to cargo...
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