2. Southwest Airlines
• Based in Dallas, Texas
• Serves three cities: Dallas, Houston and San
Antonion
• Low cost carrier
• Although Southwest does not offer business or first-
class seating, there are a variety of ticket classes you
can choose from. These range from low Internet and
Promotional fares to relatively high Refundable
Anytime rates.
• United states’ only major short-haul, low-fare, high
frequency and point-to- point carrier
3. Southwest’s Strategy
• Operating cost
– Use of 1 airplane type, Boeing 737 series
– Use of less congested airports
• People
– Non assignment of seats leads to turning airplanes
quicker at the gate
– 60 % Southwest’s passenger revenue was
generated by online booking
– Walls were filled with employees photograph
4. Competitive Advantage
• Short-haul approach and point to point flights
• Firmly believes in the philosophy of putting
employees first
• Pays its crew by trip
• Uses less congested airports
• Low cost per booking via internet
• Pilots are unionized independently
• Low ground crew requirements, turnaround time
5. Southwest Management Control
System
• Implementing short haul
• On-line booking
• Regress recruitment process
• High employee retention
• Less time at the gate
