Southwest Airlines Case Study
Enhancing Service at Southwest Airlines
Kevin Winstead
Sullivan University
MGT 620
Executive Summary
This proposal addresses the needed steps to be taken in order for Southwest Airlines to see continued growth in the airline industry. Southwest Airlines has been able to remain one of the most profitable airlines in the industry for an extended period of time. Even with the hindrance of the 2001 terrorist attacks involving airplanes and the U.S recession of 2008, Southwest has continued to see strong revenue growth. Meanwhile, other companies were experiencing major losses and in some cases folding. Southwest Airlines has capitalized on the company’s strength of being the top low cost carrier by offering a simple and efficient business plan that prides itself on customer service. Other carriers are now starting to take note of Southwest’s success and emulate many of their practices in an attempt to grab a share of their customer base. To overcome this competition, Southwest must continue to be unique and innovative in their business plans.
Introduction: A New Airline Power is Formed
Southwest Airlines was created in 1971 by Rollin King and Herb Kelleher. Their thinking was that if they offered fares lower than any of the competition, with efficient service, the company was bound to succeed. Their thinking turned out to be on target, as Southwest has for decades been one of the most successful airlines in the country.
What began as a small Texas airline has grown to become the fifth largest airline in the United States. Today, Southwest Airlines flies over 70 million passengers per year to more than 62 cities. Southwest orchestrates over 3,000 flights per day. The Southwest fleet consists of over 436 jets which have an average age of nine years old. Since the Department of Transportation began tracking Customer Satisfaction statistics in 1987,
Kevin Winstead
Sullivan University
MGT 620
Executive Summary
This proposal addresses the needed steps to be taken in order for Southwest Airlines to see continued growth in the airline industry. Southwest Airlines has been able to remain one of the most profitable airlines in the industry for an extended period of time. Even with the hindrance of the 2001 terrorist attacks involving airplanes and the U.S recession of 2008, Southwest has continued to see strong revenue growth. Meanwhile, other companies were experiencing major losses and in some cases folding. Southwest Airlines has capitalized on the company’s strength of being the top low cost carrier by offering a simple and efficient business plan that prides itself on customer service. Other carriers are now starting to take note of Southwest’s success and emulate many of their practices in an attempt to grab a share of their customer base. To overcome this competition, Southwest must continue to be unique and innovative in their business plans.
Introduction: A New Airline Power is Formed
Southwest Airlines was created in 1971 by Rollin King and Herb Kelleher. Their thinking was that if they offered fares lower than any of the competition, with efficient service, the company was bound to succeed. Their thinking turned out to be on target, as Southwest has for decades been one of the most successful airlines in the country.
What began as a small Texas airline has grown to become the fifth largest airline in the United States. Today, Southwest Airlines flies over 70 million passengers per year to more than 62 cities. Southwest orchestrates over 3,000 flights per day. The Southwest fleet consists of over 436 jets which have an average age of nine years old. Since the Department of Transportation began tracking Customer Satisfaction statistics in 1987,
References: Mouawad, J. . Retrieved from http://www.nytimes.com/2010/11/21/business/21south.html?pagewanted=all&_r=0 Trejos, N. (0). Retrieved from http://www.usatoday.com/story/travel/flights/2013/07/02/southwest-airlines-offers-fliers-free-in-flight-tv/2484739/ Retrieved from http://www.airlinepilotcentral.com/ MCCARTNEY, S. (0). Retrieved from http://online.wsj.com/news/articles/SB10001424052970204331304577140740389194590 Johnson, M. E. (2009, May 08). Enhancing Service at Southwest Airlines. Tuck School of Business at Dartmouth, Retrieved from http://www.southwestonereport.com/people