In Baltimore
Question:
1. How does Southwest Airlines compete? What are its advantages relative to other airlines?
2. The plane turnaround process requires coordination among twelve functional groups at SWA to service, in a brief period of time, an incoming plane and match it up with its new passengers and baggage for a prompt departure. Please evaluate the plane turnaround process at Baltimore -- resource utilization, capacity, bottlenecks, information flows, etc. How is the process working?
3. Why is the opearational performance at Baltimore eroding? What issues do you identify that require action?
4. What would you recommend Matt Hafner do? Answer please see attachment:
1 The competitive advantages of Southwest Airlines are as follow:
A. Unique operation system Unlike its industrial rivals who used the “hub and spoke” system, Southwest Airlines established its own point-to-point system instead. Even though economic theories tell Southwest’s system should be unworkable – the shorter the flight is, the higher the setup cost per seat mile, thanks to the well-known quick and efficient turnaround process, Southwest succeeded in creating a miracle. The point-to-point system not only enables Southwest to lower its costs and make frequent flights, but also to capture a niche market and compete with other transportation like trains and buses. This is because Southwest is able to provide passengers with short-hauling flights which can be substitutes to trains and buses. Consequently, it earns a considerable profit from the expanded market size.
B. Low costs Southwest is operating at a lower cost when comparing with its competitors. It minimizes its cost in four main ways:
1. The quick turnaround process: Southwest focuses on turning aircraft around quickly at the gate to minimize an airplane’s time on the ground. They do so by the relational coordination of their operation agents, which would be further discussed in Q2.
2. The use of a single aircraft type: Southwest
1. How does Southwest Airlines compete? What are its advantages relative to other airlines?
2. The plane turnaround process requires coordination among twelve functional groups at SWA to service, in a brief period of time, an incoming plane and match it up with its new passengers and baggage for a prompt departure. Please evaluate the plane turnaround process at Baltimore -- resource utilization, capacity, bottlenecks, information flows, etc. How is the process working?
3. Why is the opearational performance at Baltimore eroding? What issues do you identify that require action?
4. What would you recommend Matt Hafner do? Answer please see attachment:
1 The competitive advantages of Southwest Airlines are as follow:
A. Unique operation system Unlike its industrial rivals who used the “hub and spoke” system, Southwest Airlines established its own point-to-point system instead. Even though economic theories tell Southwest’s system should be unworkable – the shorter the flight is, the higher the setup cost per seat mile, thanks to the well-known quick and efficient turnaround process, Southwest succeeded in creating a miracle. The point-to-point system not only enables Southwest to lower its costs and make frequent flights, but also to capture a niche market and compete with other transportation like trains and buses. This is because Southwest is able to provide passengers with short-hauling flights which can be substitutes to trains and buses. Consequently, it earns a considerable profit from the expanded market size.
B. Low costs Southwest is operating at a lower cost when comparing with its competitors. It minimizes its cost in four main ways:
1. The quick turnaround process: Southwest focuses on turning aircraft around quickly at the gate to minimize an airplane’s time on the ground. They do so by the relational coordination of their operation agents, which would be further discussed in Q2.
2. The use of a single aircraft type: Southwest