THE UNIVERSITY OF SOUTHERN MISSISSIPPI

1. Ce Center for Logistics, Trade and Transportation and College of Business THE UNIVERSITY OF SOUTHERN MISSISSIPPI Study Abroad in PanamaCoordinated byDr. Tulio SulbaranTel: 601-266-6419 - Email: tulio.sulbaran@usm.edu Panama Airlines vs. US Airlines: A Case Study Comparing Copa Airlines to Southwest AirlinesPresented by:Kirk Gore Tel: 601-434-3651 - Email: kirkgoremail@yahoo.com Jul 2012

2. Video Preamble

3. Outline • 1- Introduction • 2- Information/Data Collection Approach • 3- Case Study • 4- Results and Results Impact • Similarities • Differences • 5- Summary

4. Introduction • By definition, an airline is “an air transportation system including its equipment, routes, operating personnel, and management” (Marriam-Webster). • The focus of my topic for this report is to compare the positioning strategies between Copa Airlines and Southwest Airlines to see what makes each airline successful in their respective countries.

5. Introduction VS.

6. Introduction • Due to the economic impact of the Panama Canal, Panama is one of the world’s fastest growing economies. • Copa Airlines is not only Panama’s most successful airline but also the most profitable airline in the world. • Panama only currently has 3 operating airlines, with one only transporting cargo so the competition is much less fierce than in the United States.

7. Introduction • This report takes an in depth look both at the market conditions of the airline industries in both Panama and the United States, and how Copa Airlines and Southwest Airlines position themselves in their industries to achieve sustainable growth and success.

8. Introduction

9. Introduction

10. Information/ Data Collection Approach • The data collection approach was divided into 2 parts for this research paper: • Internet Search and Panamanian Interview

11. Information/ Data Collection Approach • For the internet search, I searched for specific keywords in Google to find out more about the airline industries in Panama and the US. • I also used Google to research preliminary information about the strategies that both Copa and Southwest implement to achieve success in their respective countries.

12. Information/ Data Collection Approach

13. Information/ Data Collection Approach • From my internet research, I learned that: • The US Airline industry is saturated with airlines, making profitability very difficult.. • The Panamanian market has 3 airlines, with one dealing exclusively in Cargo. • Southwest Airlines employs a low cost strategy.

14. Information/ Data Collection Approach Joseph Mohan, the VP of Commercial & Planning • For the second part of the data collection, I used my iPhone to record audio and video from my Panamanian Interview.

15. Information/ Data Collection Approach • From the Panamanian interview, I learned that: • Copa Airlines employs a combination of a differentiation/niche strategy to achieve a competitive advantage in Panama.

16. Case Study • Brief Description of Copa Airlines: • Based out of Panama City, Panama • The official airline of Panama • 7,900 employees • Publicly traded • Revenues of approximately $241,000,000 per year • The most profitable airline in the world • Differentiation/niche strategic position

17. Case Study Copa Airlines headquarters location:

18. Case Study • Brief Description of Southwest Airlines: • Based out of Dallas, Texas in the United States • 37,000 employees • Publicly traded • Revenues of approximately $459,000,000 per year • Low cost strategic position

19. Case Study Southwest Airlines headquarters location:

20. Results and Results Impact • Aspects specifically compared between Copa Airlines and Southwest Airlines: • Flight Destinations • Is said company the top performer in the country? • Revenue per Year • Countries Serviced • Airplane Fleet • Pricing Strategy • Destination Strategy • Number of Employees

21. Results and Results Impact • Similarities between Copa Airlines and Southwest Airlines:

22. Results and Results Impact • Differences between Copa Airlines and Southwest Airlines:

23. Results and Results Impact • Why are the similarities important? • Why are the differences important?

24. Summary • This research paper aimed to identify the differences in positioning strategies between Copa and Southwest. • To collect the data, both internet research and a Panamanian interview were used. • The results indicate that while both airlines are the most successful airlines in their respective countries, they use very different strategies to achieve success. • Copa uses a differentiation/niche strategic position. • Southwest uses a low cost strategic position.

25. THE UNIVERSITY OF SOUTHERN MISSISSIPPIfounded in 1910 Thanks! Center for Logistics, Trade and Transportation and College of Business