1. Name five (5) key resources and capability components that contributed to Southwest Airlines strategy (5 marks);
   1. Given the information below, calculate (you must show your work) the values for the blank cells (15 marks:10 for a demonstrated solution, 5 for correct answers) Total=20 marks
      • Southwest Airlines turnaround time faster than the industry average: .5h
      • Average each airplane usage per day: 12.336 h
      • Average Trips flown in 2011, 2013 and 2015: as per exhibit: ______
      • Average trips per day (all airplanes):_____
      • Average each airplane usage time per day: _______
      • Cost of Boeing 737: $75 million
      • Average number of aircrafts owned (2011, 2013, 2015): _______
      • Extra hours of utilization per day (all aircrafts): _______
      • Equivalent number of extra planes: _______
      • Money saved for the equivalent number of extra airplanes: _______

      Source: EXHIBIT 1, Dyer, J., Godfrey, P., Jensen, R., and Bryce, D. (2020). Strategic Management: Concepts and Cases. (3rd ed.). Hoboken: Wiley.

      Financial Data: (In Millions except per share) 2015 2013 2011

      Total Operating Revenues: 19,820 17,699 15,658

      Operating Expenses:

      Salaries, wages, and benefits 6,383 5,305 4,371

      Fuel and oil 3,616 5,763 5,644

      Maintenance materials and repairs 1,005 1,080 955

      Aircraft rentals 238 361 308

      Landing fees and other rentals 1,166 1,103 959

      Depreciation and amortization 1,015 867 715

      Other operating expenses 2,242 86 1,879

      Total Operating Expenses: 15,704 16,421 14,965

      Operating Income: 4,116 1,278 693

      Net Income: 2,181 754 178

      Net income per share, basic 3.30 1.06 0.23

      Total assets at period-end 21,312 19,345 18,068

      Long-term obligations at period-end 2,541 2,191 3,107

      Stockholders equity at period-end 7,358 7,336 6,877

      Operating Data:

      Revenue passengers carried 118,171,211 108,075,976 103,973,759

      Enplaned passengers 144,574,882 133,155,030 127,551,012

      Revenue passenger miles (RPMs) 117,499,879 104,348,216 97,582,530*

      Available seat miles (ASMs) 140,501,409 130,344,072 120,578,736*

      Load factor (1) 83.6% 80.1% 80.9%

      Average aircraft stage length 750 703 679 miles

      Trips flown 1,267,358 1,312,785 1,317,977

      Average passenger fare 154.85 154.72 141.90

      Passenger revenue yield per RPM 15.57 16.02 15.12

      Operating revenue yield per ASM 13.98 13.58 12.99

      Operating expenses per ASM 11.18 12.60 12.41

      Fulltime equivalent Employees 49,583 44,831 45,392

      at period-end

      Aircraft in service at 704 680 698

      period-end (2)

      (1) Revenue passenger miles divided by available seat miles

      (2) Includes leased aircraft

      * in 000s