Preview

Southwest Airlines

Powerful Essays
Open Document
Open Document
4766 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Southwest Airlines
Introduction

Case studies
Learning excellence:
Southwest Airlines’ approach Ulla K. Bunz and
Jeanne D. Maes

The authors
Ulla K. Bunz and Jeanne D. Maes are based at the
University of South Alabama, Mobile, AL, USA.
Abstract
In an era in which adapting to change means survival, it is important to study what successful organizations have done. While the airline industry in the USA has not made thriving financial headlines, one small company has been able to satisfy its customers completely and achieve a place among the Fortune 500 in a relatively short period of time. In three steps, this article examines what Southwest
Airlines has done to reach this level of achievement and maintain its excellent employee and customer relations.
First, the company is defined as “excellent” according to the criteria established by Peters and Waterman. Second, management-employee relations, organizational training and strong leadership are identified as the sources of employee motivation. Third, loss of strong leadership and organizational structure are discussed as possible future problems influencing motivation and service. The article closes by pointing to Southwest Airline’s concept of service as the true source of motivation and excellence.

Managing Service Quality
Volume 8 · Number 3 · 1998 · pp. 163-169
© MCB University Press · ISSN 0960-4529

With the airline industry in the USA hardly making financial records, how has it been possible for a small company such as Southwest Airlines to completely satisfy their customers since 1971? (Bovier, 1993). What lessons has the management of Southwest
Airlines learned in such a relatively short time period? How have these lessons enabled the company to capture such a portion of the market? (Bovier, 1993; George and Jones,
1996)
Southwest Airlines began its service in
1971. Since then the killer-whale painted planes have become familiar to their customers and to corporate America. Besides



References: Bovier, C. (1993), “Teamwork, the heart of an airline”, Training, June, pp Bruce, A. (1997), “Southwest: back to the FUNdamentals”, HR Focus, March, Vol. 74 No. 3, p. 11. Chakravarty, S.N. (1991), “Hit ‘em hardest with the mostest”, Forbes, September 16, Vol George, J.M. and Jones, G.R. (1996), Understanding and Managing Organizational Behavior, Addison-Wesley Graham, D. (1996), “From space shots to milk runs”, Business Week, December 30, No Herzberg, F. (1968), “One more time: how do you motivate employees?”, Harvard Business Review, Vol Jaffe, C.A. (1991), “Moving fast by standing still”, Nation’s Business, October, Vol Beddingfield, K.T. and Loftus, M. (1997), “Europe unbound Bryant, A. (1994), “Kiwi seeks new labor ethic, end to Us vs Bryant, A. (1995), “One big happy family no more”, The New York Times, March 22, Vol Handy, C. (1978), The Gods of Management, Souvenir Press, Pan Books. McKenna, J.T. (1994), “Southwest, pilots trade stock for salary cap”,Aviation Week and Space Technology, N.N. (1991), “`The best (and worst) airlines”, Consumer Reports, July, Vol N.N. (1994), “Lighten up and treat passengers to some fun”, Aviation Week and Space Technology, March N.N. (1997), “Freedom in the air”, The Economist, April 5, Vol Rothman, A., DeGeorge, G. and Schine, E. (1992), “The season of upstart start-ups”, Business Week, August 31, No. 3281, pp. 68-9. Taylor, J.H. (1988), “Risk taker”, Forbes, November 14, Vol. Zellner, W., Baker, S., Hof, R.D. and Greising, D. (1995), “Go-go goliaths”, Business Week, February 13, No.

You May Also Find These Documents Helpful

  • Better Essays

    The paper is about how the airline company named as the Southwest Airlines has been able to cater to the needs of the customers while still holding a greater market share in the Airline industry specifically during the economic crises phase.…

    • 1202 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Due to the economic crisis, fuel prices, and act of god environmental crisis, airline industries have suffered in the last ten years. However, these major threats do not seem to threaten Southwest Airlines. In fact, Southwest has been achieving consistent annual profitability for 38 consecutive years. (“Annual Report,” 2010)…

    • 5067 Words
    • 21 Pages
    Good Essays
  • Satisfactory Essays

    Southwest Airlines

    • 474 Words
    • 2 Pages

    Southwest Airlines strict adherence to its mission to provide the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit is a key factor to the company’s success (About Southwest Airlines Co, 2013). The airlines ability to commit to employees to provide them with a stable work environment that ensures equal opportunity for learning and personal growth. Southwest prides itself on allowing all within the company to be creativity and innovative to help improve the effectiveness of Southwest Airlines. The most important benefit, employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.…

    • 474 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    This internal business analysis is on Southwest Airlines, which was founded in 1967 by Rollin King and Herb Kelleher. The main focus for Southwest Airlines was to provide low cost flights for their customers, and also have exceptional customer satisfaction. Southwest is a leading airline company that continues to do well in an industry that has been historically challenging. For instance, in the span of two years (2005-2007) five major airlines have filed for bankruptcy. The challenges are great in the airline industry, because competitors are trying to imitate the “low-cost” offering of Southwest. Many companies have tried to do what Southwest has done, and many have failed to stay in business. Surprisingly, many of those companies were started by ex-employees of Southwest. Southwest currently has a profitability record for the past thirty six years, which is spectacular in such a challenging industry. Herb Kelleher has been replaced by Gary C. Kelly, as the president when he resigned in May of 2008. Southwest is in the process of expanding the locations they serve so that they can increase market share, and also find ways to cut costs without losing their quality. In order for southwest to continue their consecutive financial success there is a necessity for excellence in the execution process of their strategy.…

    • 1766 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Delta Airlines

    • 2352 Words
    • 10 Pages

    Margins in air industry have been shrinking for decades. Low Cost Carriers (LCCs) such as JetBlue and Southeast have made inroads to Delta’s Florida market which stands for 30% of Delta’s revenues. After 911 Attacks, the demand decreased. DeltaExpress, Delta’s low-cost subsidiary, is launched to respond LCCs threat but it is not as successful as it was thought it would be.…

    • 2352 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Southwest Airlines

    • 775 Words
    • 4 Pages

    Chapter 13 is titled “Scheduling Operations” and it is mainly about scheduling decisions for batch operations and how they deal with the allocation of scarce resources to jobs, activities, tasks, or customers. “Scheduling results in a time-phased plan, or schedule, of activities. The schedule indicates what is to be done, when, by whom, and with what equipment. Scheduling should be clearly differentiated from aggregate planning” (Schroeder, pg. 293).…

    • 775 Words
    • 4 Pages
    Good Essays
  • Good Essays

    SW Airline

    • 550 Words
    • 1 Page

    The NPV of the blended winglet per aircraft is $218,567 using the discount rate of 10% and fuel…

    • 550 Words
    • 1 Page
    Good Essays
  • Powerful Essays

    Southwest Airlines

    • 6862 Words
    • 28 Pages

    Banstetter, Trebor and Recio, Maria. "Southwest accuses American of using ‘scare tactics ' in amendment flight." February 22, 2005 (1-3).…

    • 6862 Words
    • 28 Pages
    Powerful Essays
  • Better Essays

    Southwest Airlines

    • 1025 Words
    • 5 Pages

    In an industry that saw an entire industry literally destroyed by the events of 9/11, airlines were filing bankruptcies, most notably United Airlines. Southwest, on the other hand, has constantly made a profit for 30 years and added value to their business. So much so that Serafimov (2004) states that 200 shares of Southwest stock purchased at just over twenty-two dollars per share back in 1985 is now worth just over $24,000. This translates to a 17% increase per year. It is the purpose of this paper to discuss the business juggernaut that is Southwest Airlines and its leader Herb Kelleher.…

    • 1025 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Southwest Airlines

    • 1664 Words
    • 7 Pages

    Southwest Airlines clearly outlines their values in their corporate mission statement: The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit (www.southwest.com). This mission both describes the company 's approach to its workforce, and the customer at large. Rather than focusing on the financial side of the business, Southwest has been successful in creating an organization centered in fostering positive relationships with its employees and customers. The airline is also known for its ‘zany corporate culture ', and has maintained the buy in of its employees through emphasizing a fun atmosphere (Plunkett, 2004-2005, p.509). Company founder, Herb Kelleher once said, "If work was more fun, it would feel less like work (www.funsulting.com)". Through creating a fun working environment, Southwest has also created a fun traveling option, which entices their customers as well.…

    • 1664 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Sw Airlines

    • 3417 Words
    • 14 Pages

    Southwest Airlines was started in 1967, but at that time, it was under the name Air Southwest. Rollin King and Herb Kelleher, co-founders of Southwest Airlines, decided to form the airline because they wanted to provide a low cost, no frills type of air travel service.…

    • 3417 Words
    • 14 Pages
    Powerful Essays
  • Satisfactory Essays

    Southwest Airlines

    • 517 Words
    • 3 Pages

    - It’s lighter, weighing in at just 3.9 ounces, while the previous model is 4.8 ounces. It is slimmer, at 7.6 millimeters thick instead of 9.3 millimeters.…

    • 517 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Delta Airlines

    • 2664 Words
    • 8 Pages

    It lets you talk to me during class lectures or during help sessions as if you were in the room with me.…

    • 2664 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    United Airlines

    • 1165 Words
    • 5 Pages

    The airline boasts of of being the founding member of one of the most comprehensive alliances famously referd to as the “Star Alliance.” The alliance avails the United airline with the opportunity to access the destinations that it couldn’t have accessed if it were not for the alliance. This further allow the airline to safeguard against litigations such as the anti trust litigations and the price fixing litigations.…

    • 1165 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Southwest Airlines

    • 684 Words
    • 3 Pages

    Discuss the pros and cons for expansion of Southwest beyond short hauls. Which arguments do you see as most compelling?…

    • 684 Words
    • 3 Pages
    Good Essays

Related Topics