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SOUTHWEST AIRLINES 
BY-VISWACHAITHANYA 
(2T3-11) 
ANUPAMA (2T3-12) 
D. PALLAVI (2T3-13) 
EVITA (2T3-14) 
BHANU PRIYADARSHI...
About SouthWest Airlines 
Started Services in Texas in U.S. by Herb Kelleher and Rollin king in 1971. 
Known as a “discoun...
MISSION 
• Dedication to the highest quality of customer service 
delivered with a sense of warmth, friendliness, 
individ...
Achievements 
• 2014 – Travelers Choice Award. 
• 2003 Selected as “AIRLINE FOR THE YEAR” 
• 2007 included in top 100 most...
• How they acquired the #1 position in terms of 
services providing to customers and what are the 
strategies they are fol...
UNIQNESS 
• Service 
• Operations 
• Cost control 
• Marketing 
• People 
• Corporate culture
Southwest Service 
• Passengers related activities 
• Employees related activities 
• They encourage good relations betwee...
SouthWest Operations 
• Own ticketing 
• Travel agents – 10% commission, 55% booked by them. 
• Flew into uncongested airp...
• Southwest flew only BOEING 737 JETS. 
• The company had 150 that, in total, flew an average of 
1,500 trips per day. 
• ...
SouthWest Cost Control 
• Cost control in operations like fuel 
• Gate costs and landing fees differ 
everywhere. 
• No. o...
Marketing 
• Expansion in new cities 
• Public relations- Sponsored golf 
tournament 
• Ambassadors- customers
People 
• Customers are important in selection process, provide 
feedback in decision making 
• Peer hiring, pilot-pilot h...
INVERTED PYRAMID APPROACH
Corporate Culture 
• The feeling of the place 
• Small family and spirit 
• Working towards one common goal
SWOT ANALYSIS 
Strengths: 
• Employee Satisfaction 
• Low fares 
• Stable profitability 
• Scheduled services 
• Leadershi...
Opportunities 
• Focus on international level. 
• Focus on popular 
destinations. 
Threats 
• Fluctuation in fuel charges.
Growth Strategy 
• Expansion-trouble with facilities 
• New cities and routes-not for everyone and 
everywhere 
Marketing ...
Fuel hedging (1998) 
• Purchased fuel options for years in advance to smooth out 
fluctuations in fuel costs 
• Substantia...
The immediate expansion decision (Delivery of 
two uncommitted 737’s) 
• The first option was to expand within the system ...
Challenges of SouthWest Airlines 
• Meeting growth objectives while maintaining focus 
• Preserve the SouthWest culture an...
1st Option 2nd Option 3rd Option 
• Average: $2.50 
• Detroit and 
Phoenix 
• 3 trips per day 
• Gate and landing 
fees ar...
Thank you!!!!!!
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South west airlines case presentation (strategic management & operations)

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A Case Presentation on South West Airlines

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South west airlines case presentation (strategic management & operations)

  1. 1. SOUTHWEST AIRLINES BY-VISWACHAITHANYA (2T3-11) ANUPAMA (2T3-12) D. PALLAVI (2T3-13) EVITA (2T3-14) BHANU PRIYADARSHINI (2T3-15) G. SAI SOWJANYA (2T3-17) Siva Sivani Institute of Management , Kompally, Hyderabad(2013-2015 )
  2. 2. About SouthWest Airlines Started Services in Texas in U.S. by Herb Kelleher and Rollin king in 1971. Known as a “discount airline” since 1973. • 737 Boeing Air crafts, • 46000 employees, • 3600 flights per day • Providing services in an approximate of 57,900 customers per day. • 93 destinations over 41 states .
  3. 3. MISSION • Dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. • It primarily provides short haul, high-frequency, point-to-point, low-fare air transportation service among 93 destinations in the United States.
  4. 4. Achievements • 2014 – Travelers Choice Award. • 2003 Selected as “AIRLINE FOR THE YEAR” • 2007 included in top 100 most innovative technology organization. • First airline to establish a home page on internet • Ranked number one in customer service • 43 consecutive year of profitability
  5. 5. • How they acquired the #1 position in terms of services providing to customers and what are the strategies they are following to achieve these continuous profitability?
  6. 6. UNIQNESS • Service • Operations • Cost control • Marketing • People • Corporate culture
  7. 7. Southwest Service • Passengers related activities • Employees related activities • They encourage good relations between employees and passengers. • They made an experiment by giving traditional tickets.
  8. 8. SouthWest Operations • Own ticketing • Travel agents – 10% commission, 55% booked by them. • Flew into uncongested airports which reduced 15%-25% of average flight time. • Interline baggage–doesn't coordinate with other airlines. • Drinks and snacks were served • 84% unionized workforce
  9. 9. • Southwest flew only BOEING 737 JETS. • The company had 150 that, in total, flew an average of 1,500 trips per day. • The 737 was the smallest plane in Boeing’s fleet, seating 137 passengers. • The 737s had an average life of 20 years. • The average age of Southwest’s planes was seven years, one of the lowest averages in the industry.
  10. 10. SouthWest Cost Control • Cost control in operations like fuel • Gate costs and landing fees differ everywhere. • No. of departures, 10 from each gate.
  11. 11. Marketing • Expansion in new cities • Public relations- Sponsored golf tournament • Ambassadors- customers
  12. 12. People • Customers are important in selection process, provide feedback in decision making • Peer hiring, pilot-pilot hiring and line employees- lines employees hiring. • Cross training- Switch jobs and Broad latitude – serve customers. • Recognition • Compensation was low, but the employees had psychological satisfaction
  13. 13. INVERTED PYRAMID APPROACH
  14. 14. Corporate Culture • The feeling of the place • Small family and spirit • Working towards one common goal
  15. 15. SWOT ANALYSIS Strengths: • Employee Satisfaction • Low fares • Stable profitability • Scheduled services • Leadership • Customer service Weakness • No international flights • Carry small amount of freight and cargo
  16. 16. Opportunities • Focus on international level. • Focus on popular destinations. Threats • Fluctuation in fuel charges.
  17. 17. Growth Strategy • Expansion-trouble with facilities • New cities and routes-not for everyone and everywhere Marketing entry strategy • Low operating costs • Load factor- adding services to balance supply and demand
  18. 18. Fuel hedging (1998) • Purchased fuel options for years in advance to smooth out fluctuations in fuel costs • Substantially increased its hedging in 2001 in response to projections of increased crude oil prices
  19. 19. The immediate expansion decision (Delivery of two uncommitted 737’s) • The first option was to expand within the system and add a new segment directly between Detroit and Phoenix. • The second option was to enter the Dayton market. • The final option was to establish a base on the East Coast, initiating service in Baltimore.
  20. 20. Challenges of SouthWest Airlines • Meeting growth objectives while maintaining focus • Preserve the SouthWest culture and spirit that had enabled it
  21. 21. 1st Option 2nd Option 3rd Option • Average: $2.50 • Detroit and Phoenix • 3 trips per day • Gate and landing fees are high • Phoenix- $2.75 • Detroit- $3.25 • 500 letter written • Average: $2.5 • Dayton market • 226 miles • 9,70,000 population • Relatively stable • Fare raising • 50 min TAT • Dayton-2.00 • Average: 2.5 • Baltimore • 2.4 million people • 611 miles • 90 minutes • Weather conditions • Delays-50%
  22. 22. Thank you!!!!!!

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