Differential advantage ( International Operation)

Company

International Markets To Take Center Stage In 2016
Until 2014, Southwest was known to be a domestic carrier with negligible international exposure. However, with the completion of its merger with AirTran in 2014,  initiated international flights to Aruba, Bahamas, and Jamaica. Following the success of these flights, the airline decided to further expand its presence internationally by building an international hub at Houston Hobby Airport, where the airline has a significant domestic presence. In this effort, the airline invested heavily on the first international terminal at the Hobby Airport consisting of five gates, of which four will be operated by Southwest. The new terminal will allow the airline to offer flights to new international destinations, particularly in Central America, Mexico, and the Caribbean.
According to the update provided by the CFO, the new terminal, which drew an estimated investment of $156 million (southwest.com) is on track for its launch next month. She also highlighted that the airline will be dedicated towards establishing its footing in the international markets in the next year, while enjoying the benefits of the robust capacity in Dallas. The airline has announced its plans to add flights from Hobby to Cancun, Mexico City, Puerto Vallarta, Los Cabos in Mexico, and Belize City, Belize by the end of this year. Apart from these six new flights, Southwest also aims to expand its services in 50 new international markets through the Baltimore Airport, the carrier’s second-busiest hub, and the Fort Lauderdale Airport. Over the next few years, we can anticipate Southwest’s international operations to contribute a larger and more significant portion of its revenue growth.
Source(http://www.forbes.com/sites/greatspeculations/2015/09/25/southwest-airlines-will-focus-on-expanding-its-international-operations-in-2016/#67ec5d25581f)