Environmental Analysis: Southwest AirlinesSouthwest Airlines is one of the most successful airlines in the United States. There have never been any layoffs or strikes in the company's history, although on several occasions layoffs might have been justified, including the months following the terrorist attacks of September 11, 2001. However, Southwest's mission statement states: " Most importantly, employees will be provided the same attitude of concern, respect and care within the organization that they are expected to share externally with every Southwest customer.” (Southwest, 1988). The airline has always believed that its corporate culture is one of the keys to its success. The culture recognizes that employees have emotional intelligence and that their attitudes and morale are critical to the teamwork and creative environment. Southwest Airlines operates in an industry that is struggling to make profits. Slowing economic growth and rising fuel costs are reducing earnings while revenues remain the same. Macroeconomic factors affecting the airline industry include unemployment, economic growth in the United States, and inflation. With low economic growth, consumers are finding it increasingly difficult to purchase luxury items, and vacation airline tickets fall into that category. Unemployment contributes to the lack of vacation travelers since people who don't have jobs don't have extra money for vacations or plane tickets. Inflation causes airlines' operating costs to be higher, reducing profits. Unemployment is hitting the airline industry. While unemployment in the United States is relatively low, unemployment in the airline industry has been more volatile. As unemployment has risen, airlines have laid off a much higher percentage of their employees. As unemployment has fallen, they have rehired large numbers. Layoffs among major airlines are not uncommon. Southwest is unique in its history of refusing to lay off any employees. Figure 1: Unemployment in the United States compared to unemployment in the transportation sector. (Bureau of Economic, 2008) As unemployment remained relatively stable from 2003 to 2007, US gross domestic product increased. The aviation sector contributes on average 0.4% to GDP. However, if GDP has increased, the AirFigure 2: Growth of the aviation sector and gross domestic product.