Accounting aspects of Southwestern Airlines Essay

Accounting aspects of Southwestern Airlines - Essay ExampleIn 1966 Kelleher was practicing law in San Antonio when a guest named Rollin King wished-for starting a short-haul airline akin California-based Pacific Southwest Airlines.The airline would fly the Golden Triangle of Houston, D on the wholeas, and San Antonio and by staying within Texas, avoid federal official regulations. Kelleher and King formed a company, raised initial capital, and filed for regulatory approval from the Texas Aeronautics Commission. Regrettably, the other Texas-based airlines, that is to say Braniff, Continental, and Trans Texas, opposed the idea and waged a battle to prevent Southwest from flying. Kelleher argued the companys showcase before the Texas Supreme Court, which control in Southwests favor. The US Supreme Court refused to hear an appeal filed by the other airlines. In the novel 1970s, it looked as if the company could begin flying.Southwest then began building a management team, and the p urchase of three wastefulness Boeing 737s was negotiated. In the meantime, Braniff and Texas International continued their efforts to put off Southwest from flying. The underwriters of Southwests initial public stock go withdrew, and a restraining order against the company was obtained ii days before its scheduled inaugural flight. Kelleher again argued his companys case before the Texas Supreme Court, which ruled in Southwests favor a second time, lifting the restraining order. Southwest Airlines began flying the following(a) day, June 18, 1971 (Freiberg & Freiberg, 1996).Southwest Airlines An IntroductionSouthwest Airlines has always been thriving in terms of productivity, good employee and union relations, and customer satisfaction at a time when most airline carriers are besieged in all these areas. Crucial to the companys hallmarks is its culture of flexibility and family-orientation. Herb Kelleher summed up the Southwest culture and commitment to employees We dont use thin gs the likes of TQM. It is unless a lot of nation taking pride in what theyre doing. You have to recognize that people are important. How you treat them determines how they treat people on the outside.. I give people the license to be themselves and motivate others in that way. We give people the opportunity to be a maverick. You dont have to fit in a constraining mold at work-you can have a good time. People move to that (Lancaster, 1999). Despite the fact that 90% of Southwest employees are unionized, labor relations have been surprisingly positive, particularly by industry standards. There are no official structures for labor or union booking in management administration nevertheless the company led by top managers who vigorously search out and respond to employee views has taken the lead on developing and maintaining this culture. One significant base of the companys achievement in a rather unsteady industry is the fact that the unions are not involved in push button thei r roles beyond the conservative collective bargaining and grievance functions they perform. In this regard, Southwest differs from some other known cases of Human Resource-based and customer-oriented success stories (Kochan, 1999). Southwest Airlines Its Accounting AspectsThe September 11 incident pushes the airline industry into stinting turmoil, resulting in unemployment, insolvency, and the prospect of fragile prospects. Soon after the September 11, most study airlines announced kinky service reductions, grounded aircraft, and laying-off of employees. Yet during the first decade of deregulation, more than 150 carriers, many of them start-up airlines, collapsed into insolvency. Eight of the 11 major airlines dominating the industry in 1978 ended up filing for bankruptcy, merging with other carriers, or just disappearing from the radar screen. All together, the industry made enough money during this period to buy two Boeing 747s. (Dempsey, 1984).