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Southwest Airlines Financial Health essay
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Southwest Airlines Financial Health. Custom Southwest Airlines Financial Health Essay Writing Service || Southwest Airlines Financial Health Essay samples, help

Financial health reflects the state of a company’s financial situation or position. It captures the amount of savings owned, how much is set away for future investment and all expenses incurred by a company. The Southwest Airline has its own financial plan that enables it to be on track, achieve its goals, and steer away from falling victim to risks if the unanticipated happens.

The company has continually protected its financial health which is its primary goal over the years (www.southwest.com). This has been achieved by ensuring a healthy cash balance and average debt levels that are easily managed. Much money was put in short-term investment and most transactions were brought to completion which heavily boosted liquidity. This included the sale and lease of planes. Some other money came out of secured agreements on loans.

Certain financial concepts were used that boosted the company’s financial press. First, the excellent customer care services. The company’s dedication to offer quality customer service makes it one of the best in terms of low complaint ration as compared to their competitors. Certain comforts were introduced to boost customer experience including customers being allowed to fly with their pets in the aircraft cabin. The free internet allowed customers onboard to surf the web while flying. This was after the installation of satellite broadband from the company’s Wi-Fi. Additionally, customers can track the flight and have a photographic view of sites they are flying. Customers’ suggestions are regularly listened, their comments are read and feedback accessed from social sites that bring out industry performance.

Secondly. the concepts of low fares and low costs are dominant. The company made the decision not to charge things that should be free. Customers’ first two bags are not charged, there are no change fees. With free telephone reservations and snacks being provided at no cost there is big encouragement. This policy of no change fees plays a big part in business and tourist travelers’ decisions.

The company’s financial health is perceived to be growing steadily. Despite the economic crisis, the company still employs workers. Southwest Airlines has achieved so much and has been accredited with many award and recognition. It has been ranked amongst America’s Top companies by Barron’s and being called champions of customer care by J. D. Power.

The company’s good financial health is based on two principles upon which it was founded. First, the dedication to offer the highest quality of services to customers accompanied with warmness and friendliness. This has enabled good performance and profitability to the company. Secondly, the principle of low fares that has attracted the business community and leisure travelers. Good employee remuneration and opportunities to further education has boosted service delivery all aimed at achieving a better financial health.

Enhancement of how revenue is managed and the company’s network optimization have played a greater role towards improving the company’s financial health. Instead of increasing charges, as is the case in the industry, the company let customers have the choice to pay more for services that are optional. Efforts to contain costs are in place to help reduce operating costs arising from volatile fuel prices. All this helps the company to maintain financial health and strength of the balance sheet.

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