1. Bryan Brown John Bynum

2.  Southwest is experiencing financial difficulties following the expiration of their oil hedging contracts  Make a recommendation for the companies strategy for the next 5 years

3.  Volatile fuel prices  Inconsistent culture  High cost of labor  Heavily unionized  No longer the low cost provider

4.  Point to Point strategy  2 free bags  No seating chart/ class  737 sole airframe  Put the employee first, everything else will follow

6. *see Fig. 1

8. Abandoned humorous advertising campaign Emphasizing that they care Messages on carts and napkins Positioning themselves as more professional

9.  A warrior spirit  A servant’s heart  A “fun-luving” attitude  Employee recognition program

10.  Shift in culture  Employees first, the rest will follow  Kelleher to Kelley  2007

12. National Comparative Advantage Factor conditions Related and Supporting Industry Demand Conditions Strategy, Structure, Rivalry

13.  Be a best cost provider  Reduce Fuel Consumption  Expand to Alaska/ Hawaii  Hedge fuel  Labor Relations

14.  Fuel saving policy- top down  Practice maintaining a higher cruise altitude - 40,000 ft.  Glide down to airport  6,875 gal. *.01 = 68.75 gal.  68.75 * 3,400 Daily flights = 233,750 gal.  233,750 * 365 = 85,318,750 gallons  85,318,750 gal. * $3 = $255,956,250

15.  Alaska/ Hawaii only serviced by one major carrier- Alaska Airlines  Fleet consists of exclusively Boeing 737’s  Higher profit margins on longer flights, more time in air, less time in terminals/ fewer terminal fees  *See Fig. 2

16.  Push for increased presence in Western US  Seattle- Alaska headquarters  Spokane  Los Angeles  Chip away at Alaska’s market share  *See figure 3

17.  Shares: 132,631,936  Current Price: $55.42  Premium: $57.00  Total Cost: $7,560,020,352.00

19.  Have more transparency within the ranks  Satisfy the internal customer  Go back to employee first, everything else will follow  See Fig. 4

20. 2015201620172018 Today 2019 Dec 29 Airtran dissolves Expand national operations in western US Buy Alaska Airlines Hedge fuel Implement fuel saving practices Alaska Airline fully integrated

21.  Southwest Airlines- Fuel Hedging Case Analysis by Vishal Prabhakar  NASDAQ finance- Income Statements  Southwest 2013 Annual Report  Delta 2013 Annual Report  COB Case packet  Frank Miner- personal interview  Boeing.com  Ogj.com