Southwest Airlines Business Operations
Southwest Airlines Business Operations
Southwest Airlines continues growth during challenging times with no its low price, no frills and good customer satisfaction, setting themselves apart from the competition. Organizational change is part of the culture that successfully allows Southwest Airlines to set itself apart. The airline industry is subject to external forces such as fuel prices, labor costs, passenger economic status, and public perception. Southwest Airlines has developed a successful business model based on standardization and efficiency that has allowed them to keep operating costs low and as predictable as possible.
There is still a certain segment of the public that needs, or has a desire, to fly as their mode of transportation. Through the use of internal control processes Southwest Airlines continues to increase passenger satisfaction and ridership by fostering a unique organizational culture that is adaptable and open to change. Southwest Airlines has amazingly been able to do this and “the carrier has enjoyed 37 straight profitable years amid the airline industry 's ups and downs” (Southwest, 2009). Additionally, Southwest Airlines takes pride in setting itself apart from the competition, offering services that make them seem completely different from their competitors. Some of those things are: the use of only one type of aircraft, one type of seating accommodations, upfront pricing without added fees, and not charging for checked baggage. While many air travelers do not like the limited service that keeps Southwest Airlines ticket prices low, others are willing to take less service if they are saving on the ticket price.
History
Founded in 1971, by Herb Kelleher and Rollin King, Southwest Airlines was originally incorporated as a low cost regional airline that would provide service to three cities in Texas: Dallas, Houston, and San Antonio. They had the idea that if they could offer the speed and convenience of air service at a price
Southwest Airlines continues growth during challenging times with no its low price, no frills and good customer satisfaction, setting themselves apart from the competition. Organizational change is part of the culture that successfully allows Southwest Airlines to set itself apart. The airline industry is subject to external forces such as fuel prices, labor costs, passenger economic status, and public perception. Southwest Airlines has developed a successful business model based on standardization and efficiency that has allowed them to keep operating costs low and as predictable as possible.
There is still a certain segment of the public that needs, or has a desire, to fly as their mode of transportation. Through the use of internal control processes Southwest Airlines continues to increase passenger satisfaction and ridership by fostering a unique organizational culture that is adaptable and open to change. Southwest Airlines has amazingly been able to do this and “the carrier has enjoyed 37 straight profitable years amid the airline industry 's ups and downs” (Southwest, 2009). Additionally, Southwest Airlines takes pride in setting itself apart from the competition, offering services that make them seem completely different from their competitors. Some of those things are: the use of only one type of aircraft, one type of seating accommodations, upfront pricing without added fees, and not charging for checked baggage. While many air travelers do not like the limited service that keeps Southwest Airlines ticket prices low, others are willing to take less service if they are saving on the ticket price.
History
Founded in 1971, by Herb Kelleher and Rollin King, Southwest Airlines was originally incorporated as a low cost regional airline that would provide service to three cities in Texas: Dallas, Houston, and San Antonio. They had the idea that if they could offer the speed and convenience of air service at a price
References: Ahles, A. (2008, September 13). Southwest weathers downturn without sacrificing its culture. McClatchy - Tribune Business News, p. . Retrieved from November 7, 2010, from ProQuest Newsstand. (Document ID: 1858240551) Bailey, J Barth, S. (2010, March 22). Airlines Fees Are Taking Off [Web log message]. Retrieved from http://www.mint.com/blog/saving/rising-airlines-fees/ Casey, K Dunn, G. (2009). Fuel hedging . Airline Business. Retrieved from http://www.flightglobal.com/articles/2009/02/19/322650/fuel-hedging.html Giovis, J Huffman, M. (2007, September 19). Southwest airlines sticks with open seating. Consumer Affairs. Retrieved from http://www.consumeraffairs.com/news04/2007/09/southwest_seats.html Koenig, D Lewis, L., & Liebar, R. (2005, November 5). Testing the latest boarding procedures . The Wall Street Journal. Retrieved from http://online.wsj.com/article/SB113088351796485562.html SWAPA Agrees to Tentative Agreement on 737-800 Southwest Airlines Co.. (2010). Hoovers Company Records. Retrieved from Retrieved November 7, 2010, from Hoovers Company Records. (Document ID: 168150571). Southwest cares: doing the right thing. (2010). Retrieved November 3, from http://www.southwest.com/about_swa/southwest_cares/our_planet.html Spector, B We weren’t just airborne yesterday. (2010). Retrieved November 4, from http://www.southwest.com/about_swa/airborne.html