EXTERNAL FACTOR ANALYSIS SUMMARY (EFAS)

FACTORS WEIGHT RATING WGTD COMMENTS

SCORE
OPPORTUNITIES
O1 Expansion to other cities .15 4.0 .60 Wright Amendment repeal that
removes Southwest Airlines
restriction from offering long-haul
flights from Dallas Love Field.
O2 International Flights .30 4.0 .12 Southwest Airlines first introduced
international flights in 2014 and it
is growing steadily.
O3 Senior discount .10 3.0 .30 Southwest Airlines is the first
airline that gives flight discounts
for seniors.
O4 In-flight internet access .20 5.0 1.00 Southwest Airlines offers in-flight
internet access and charge $8 a
day on enabled airplanes.
O5 Potential partnership to .25 4.0 1.00 Southwest Airlines can create
expand international flight partnership with other foreign
services airlines to expand their
international flight services.

THREATS
T1 Improving .20 3.0 .60 The improving telecommunication
telecommunication technology may require less
technology physical conferences between the
companies and conduct it online.
T2 Increasing oil and gas price .30 4.0 1.20
T3 Intense competition .30 3.0 .90 Southwest Airlines is in a very
Intense competition on being the
most affordable airlines.
T4 Unrealistic unemployment .10 4.0 .40 The unrealistic unemployment rate
 rate weakens the American’s ability to
afford flight tickets.
T5 Southwest Airlines .10 2.5 .25 The on growing workers’ union
relationship with the has been putting gaps between the
employee is getting weaker Southwest Airlines and its
employee.

TOTAL SCORES 1.0 6.37

References:

Economists have discovered how bad the economy really is. (2015, April 21). Retrieved August 27, 2015, from
http://www.washingtonpost.com/news/wonkblog/wp/2015/04/21/economists-have-discovered-how-bad-the-economy-really-is/

Southwest Airlines SWOT: Financial strength is mainstay, but cost and culture challenges loom large. (2014, September 21).
Retrieved August 28, 2015, from http://centreforaviation.com/analysis/southwest-airlines-swot-financial-strength-is-mainstay-but-
cost-and-culture-challenges-loom-large-187714

WiFi Access - Southwest Airlines. (n.d.). Retrieved August 28, 2015, from https://www.southwest.com/html/air/products/wifi-
access.html?clk=GFOOTER-PRODUCTS-WIFI