PROJECT MANAGEMENT

A CASE ON
 Core Team
• Abhishek Dhamne -P01
• Gaurav Samel -P09
• Nitesh Manikkoth -P16
• Sushant Nadarge -P41
• Ruchira Paradkar -C27
• Altaf Dhalani -C
 About The Company
• Major U.S. airline and the world's largest low-cost
carrier

• It was established in 1967

• Employees- 46,000 and operates more than 3,400

flights per day

• Headquartered in Dallas, Texas

• Revenue: US$ 17.08 billion

 The Case
• Extremely Cyclical

• Too many seats and few passengers

• Reason- Deregulation and Technological advances

 Strategy Adopted by South West
• Target Niche

• One plane fits all

• Simple In-flight service

• No frill, No Fees

• Well managed workforce

 Expenses
• A lengthy analysis to determine the feasibility
of the route
• Airport costs
• Load and unload luggage or to provide upkeep
for their planes
• Outsourcing
Projected Net Cash flows (in Millions of Dollars)

Year Net Cash flow

0 -$20.8
1 $4.5
2 $6.3
3 $5.2
4 $3.9
5 $2.1
6 $1.3
7 $0.5
 Project's Payback Period.
• Cash out flow: $ 20.8 million Year Net Cash
flow
0 -$20.8
1 $4.5
2 $6.3
3 $5.2
4 $3.9
• 4 years and 5months approx 5 $2.1
6 $1.3
7 $0.5
Project's NPV assuming Southwest
has a discount rate of 10%?