1. Southwest Airlines Professor William Wan

2. (2002) Market Capitalization

3. 2002 Current Market Cap- Southwest vs. Combined

4. American America WestContinentalDeltaNorthwestSouthwestTransworldUnitedUSAir 1990103-32-191-1765782-134-34-437 199140-79-218-115-13262-233-412-233 1992-251-64-183-22517182-191-354-397 199335712156335-203281-63184-143 1994432146-145123268290-81262-466 1995989114120340725393-139735-75 19961316694725711134350-1991130369 1997144716364616211108524-291226586 1998174819862117931203684-651435990 199910031974491261769782-3431358202 20001243-1358914596641021-233741-44 2001-2558-320-323-1383-395631-503-3743-1181 Net Operating Income (millions of dollars)

5. Other Accolades (examples) Airlines Triple Crown Awards Fortune Magazine Best Employer Between 72 and 92, stock price rose a compounded 21,000% Rarely lost money in any single quarter Never experienced major labor strike (1980: 6 days mechanic strike) –The last two items may not sound very impressive, but considering what history of the airline industry, what SW has achieved is nothing short of remarkable.

6. HR Management R & D Procurement Inbound Logistics Operations Outbound Logistics Marketing Service SW: Selection, training, bonus, stock option, no layoff, legend, union, smaller crew Industry: union, confrontational SW: ticketless, no computerized reservation system, online industry: ticket, agent, computerized reservation system SW: all 737, no meal, secondary airport, young fleet Industry: full service, primary airport SW: low cost reservation no meal, few fare options Industry: high cost, ticket office & agent SW: high efficiency, no meals, no seating assignment Industry: full service SW: point-to-point, fast turnaround, short haul Industry: hub & spoke, long & short haul SW: fun, compete with driving, etc. Industry: business SW: rapid reward Industry: mileage Southwest Airlines Value Chain