Navigating through crises

: southwest airlines strategic responses to the 9/11 attacks, COVID-19 and to an internal operational crisis

Abstract

This thesis examines the strategic resilience of Southwest Airlines (LUV) in navigating three significant crises: the 9/11 terrorist attacks, the COVID-19 pandemic, and the 2022 internal operational crisis. Through a case study approach, it explores how the company leveraged its low-cost business model, point-to-point network, and dynamic capabilities to face disruptions, maintain financial stability, and reinforcing customer trust. The study benchmarks Southwest's performance with its peers, categorizing them into Low-Cost Carriers (LCCs) and Full Service Carriers (FSCs), and evaluates the effectiveness of their strategic responses using theoretical frameworks like Resource-Based Theory (RBT), SWOT analysis, and the VRIO framework. The findings of this dissertation highlight how Southwest’s commitment to stakeholder engagement, operational efficiency, and strategic adaptability allowed them to achieve sustained competitive advantages. The thesis also digs into the broader implications of market forces, including consumer behavior shifts and industry rivalry, using Porter’s Five Forces analysis. This research contributes to the literature on strategic crisis management and management in general by presenting Southwest Airlines as an example for balancing operational efficiency with customer-centric approaches in a volatile industry.

Date of Award	3 Feb 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Cardeal (Supervisor)