Executive Summary: The commercial airline business is highly capital
             intensive and competitive, and is characterized by boom and bust periods
             that largely correspond with global and/or domestic economic cycles.
             Indeed, the fortunes of most major airlines rise and fall in keeping with
             economic growth and recession (Industry Profile, 2004). One airline,
             however, which has consistently managed to grow and that too profitably,
             irrespective of periods of economic growth or downturns is Southwest
             Airlines. Southwest's impressive performance is evidenced by the fact that
             the airline has managed to earn a profit every year since 1973 (Southwest
             Fact Sheet, 2004). The key to understanding Southwest's success lies in its
             unique business model of rock bottom fares, low operating costs, and
             outrageous customer service (Freiberg, cited Peters, 1998, p. xiv). It is
             therefore not surprising that Southwest Airlines has grown steadily to
             become America's fourth largest major airline, with a fleet of 355 jets
             that fly more than 64 million passengers a year to 59 airports, all over
             the Southwest and beyond (Southwest History, 2002, para. 2-3).
             Interestingly, Southwest Airlines can be said to be still in the growth
             stage of its life cycle if one considers that it has scope to further
             expand its geographical network. However, it remains to be seen if the
             airline can continue to replicate the success of its proven business model
             given that a number of imitators have inevitably sprung up.
             Political/Legal Environment: Post September 11, political and legal
             regulations to enhance security for air travelers have been introduced.
             This has resulted in rising security costs for all airlines (Industry
             Profile, 2004). In any case, the airline industry has always been subject
             to political regulation. Even though the domestic civil aviation industry
             was deregulated in the U.S. in 1978, allowing airlines to compete fr...