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Following the 9/11 tragedy in 2001, Congress adopted legislation aimed at tightening security and preventing a reoccurrence of the same. To this end, Southwest Airlines has to comply with the provisions of the Aviation Security Act, which require airlines to, among other things, train their crew on the handling of security matters, thoroughly screen all passengers, and maintain an adequate number of federal air marshals aboard flights (TSHA). Southwest Airlines, moreover, has to operate in compliance with the stringent security-enhancement rules set by the TSA, including carryon luggage requirements and the payment of the Aviation Security Infrastructure Fee (TSHA). Recent years have seen numerous modifications made to these rules; a factor that makes it difficult for the company to predict the effects of such changes in the short-term and in the long-term (TSHA).
Social Factors: Southwest Airlines attaches high value to its customers and strives to offer them the best services at the most affordable rates (Southwest Cares Report 1). Its commitment to customer service is depicted in the comprehensive plan in which its mission statement; "Dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and Company spirit," is embodied (Southwest Cares Report 1). Flyer programs are a common strategy for ensuring customer loyalty in the domestic airline market. Southwest Airlines operates a rapid reward program, in which customers are awarded points, using which they could earn free trips (Southwest Cares Report 1).
Southwest Airlines has, as most of its competitors struggle, shown consistency with regard to union relations. With a unionized employee percentage of approximately 90%, and deregulation making
1. Testimony of Chairman Alan Greenspan Federal Reserve Board's semiannual Monetary Policy Report to the Congress. July 2004. On the Internet at http://www.federalreserve.gov/boarddocs/hh/2004/july/testimony.htm
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Agregate Demand, IS-LM, AD-as information on the Internet at 4. www-rcf.usc.edu/~yongkim/305n2004p2.pdf
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8. faculty-web.at.northwestern.edu / economics/gordon/textbook/chapter5.pdf
Frantz, T. (2005). Anger Beginning of Untold Grief by Katrina's Victims. September 6, 2005.
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