Finalsw

1,498 views

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,498
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
38
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Finalsw

  1. 1.
  2. 2. HERBERT KELLEHER<br /><ul><li>Started his Law Firm in Texas
  3. 3. 1993 Tony Janus Award – Outstanding leadership
  4. 4. 2003 Bower Award – Business leadership
  5. 5. 2004 Inducted as Junior Achievement U.S. Business hall of fame
  6. 6. Stepped down as CEO in 2007 and joined Federal Reserve Bank in 2010</li></li></ul><li>Rolling King<br /> Rolling King was one of the law clients of Herbert Kelleher<br />Started Air Southwest with Herbert Kelleher<br />Held the Director post for 30 years <br />Was member of Audit Committee, Executive Committee and Member of Nominating & Corporate Governance Committee<br />
  7. 7.
  8. 8.
  9. 9. FIRST FLIGHT – GREEN COLOR<br />DALLAS<br />HOUSTON<br />
  10. 10. FIRST FLIGHT – GREEN COLOR<br />SECOND FLIGHT – RED COLOR<br />DALLAS<br />HOUSTON<br />SAN ANTONIO<br />
  11. 11. FIRST FLIGHT – GREEN COLOR<br />SECOND FLIGHT – RED COLOR<br />THIRD FLIGHT – BLACK COLOR<br />DALLAS<br />HOUSTON<br />SAN ANTONIO<br />
  12. 12. Legal Battle<br /><ul><li> Incorporated to serve on March 15, 1967. Dallas, Houston and San Antonio
  13. 13. Case filed by Aloha Airlines, Braniff, Continental Airlines & United Airlines.
  14. 14. Verdict came on December 7, 1970, it is in the favour of Air Southwest
  15. 15. Air Southwest to Southwest Airlines</li></ul> <br />
  16. 16. Legal Battle<br /><ul><li>First Flight - June 18, 1971 from Love Field in Dallas to Houston and San Antonio
  17. 17. LUV – Listed in NYSE in 1977
  18. 18. “Gumwrappers and Goggles” by Winifred Barnum in 1983
  19. 19. First black pilot, Louis Freeman, in 1980</li></li></ul><li>Low-cost Model<br /><ul><li> The reason for Southwest Airline's success</li></ul> is due to their low-cost model. <br /><ul><li> The goal attached to this no-frills, low-cost model: is to provide the cheapest form of short air travel between two cities; providing the bare necessities.
  20. 20. Idea:customers can be satisfied without having expensive options available for them .</li></li></ul><li>How do they cut down on cost ?<br />Flies only one type of airplane model<br /> -Boeing 737<br />Offer only coach seats.<br />No business class or first class.<br />Do not offer flight meals except peanuts,other snacks and soda.<br />
  21. 21. 15 minutes turn around time.<br />Shorter routes.<br />Do not charge for checking luggage/bags.<br />Reservations without travel agents.<br />Secondary airports.<br />
  22. 22. Southwest Airlines provided a medium in which city-to-city transportation has become possible with the lowest costs. <br />Especially to people who didn't bother about the additional services such as in-flight meals, luxurious seats or wanted to avoid busy airports. <br />
  23. 23. Relationships with:-<br />(i) Employees<br />Employees’ upside down pyramid (organizational structure)<br />Virtually knows every employees’ name<br />First profit-sharing plan in the U.S airline industry, 1994<br />Compensation ,no contracts….Pilots paid for their service in air<br />
  24. 24. (ii) Customers<br />Customers are attracted to the low price<br />Provides free snacks and soda<br />First airline website<br />Value for time (Direct Root) motto<br />Notion: "If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline."<br />
  25. 25. Achievements<br />Largest airline in the world by number of passengers carried per year (as of 2009)<br />Maintains 3rd largest passenger fleet of aircraft amongst all the world’s commercial airlines.<br />It has been ranked as number one in lowest number of customer complaints of all U.S airlines<br />
  26. 26. Why NUTS?<br />In-flight meals are never served, just 60 million bags of peanuts a year<br />Planes are painted with killer whales<br />Unconventional approach in the service<br /> (i) Toilet paper<br /> (ii) Play pranks<br /> (iii) The ambience is very lively and energetic<br />
  27. 27. Competitors of South-west<br />Few of their main competitors are Continental Airlines and American Airlines.<br />Other competitors who have tried to copy the low cost model of south – west were on the verge of bankruptcy.<br />
  28. 28. How American airlines differ from South -west<br />Their fares are expensive.<br />They have separate elite classes in flights.<br />They charge customers for checking luggage's.<br />They are less effective because they are basically torn between keeping elite members happy and filling economy seats.<br />
  29. 29. How Continental airlines differ from South -west<br />There is a very tight competition between the two.<br />Both have been listed in FORTUNE’S ‘most desired companies’<br />Continental flies various airplane models unlike south west<br />It does not operate on the point to point route like south-west .<br />
  30. 30. Continental offers economy class as well as business class.<br />They offer domestic as well as international destinations.<br />Continentals history points out to several fatal accidents while Southwest has not had any passengers death on any of its plane in history.<br />
  31. 31. Executive Summary<br />Southwest Airlines provides low-fare air transportation service among 58 cities in the United States<br />Here are some numbers that will give a brief idea how the company is operating:<br /> (i) Net income: $241 million <br /> (ii) Total passengers carried: 63 million<br /> (iii) Passenger load factor: 65.9 percent <br /> (iv) Total operating revenue: $5.5 billion <br />
  32. 32. Executive Summary<br />In 1999, they had total net sales of $4,735 million which had risen to $5,585 million. Their slight drop in 2002 to $5,521 million was due to the September 11th incident.<br />There is a 13% insurance raise for the airlines and the government<br />
  33. 33. 2009 Financial Statistics:<br />Net income: $99 million<br />Net income, excluding special items: $143 million<br />Total passengers carried: 86 million<br />Average passenger load factor: 76 percent<br />Total operating revenue: $10.4 billion<br />
  34. 34. Aircrafts<br />Average age of fleet approximately 11 years.<br />Average aircraft trip length.<br />Southwest aircraft fly an average almost 10 hours per day.<br />Southwest was the launch customer for the Boeing 737-700 in 1997 and Boeing 737-500 aircraft.<br />
  35. 35. Fun Facts:<br />Southwest received 90,043 resumes and hired 831 new Employees in 2009.<br />In 2009 Southwest served 63.2 million cans of soda, juices, and water; 14.3 million alcoholic beverages; 14 million bags of pretzels; 90 million bags of peanuts; 17.7 million Select-A-Snacks; and 33.5 million other snacks.<br />Southwest consumed approximately 1.4 billion gallons of jet fuel in 2009.<br />
  36. 36. Fun Facts<br />In 2009, Southwest moved 182 million pounds of cargo.<br />Southwest has 1,164 married couples. <br />
  37. 37. Southwest Airlines Distinctions:<br />Southwest’s average passenger airfare is $131.82 one-way, and the average passenger trip length is about 883 miles.<br />Southwest Airlines has consistently received the lowest ratio of complaints per passengers boarded of all Major U.S. carriers.<br />
  38. 38. Drawbacks:<br />Not able to compete against the bigger companies that serves internationally.<br />Southwest Airlines does not utilize a hub system.<br />Limitation of using only one type of airplane ie Boeing 737s<br />They does not provide roomier seats.<br />
  39. 39. Future plan of south west airlines<br />Plans of merging Southwest Airlines and Acquire AirTran; Spreading Low Fares Farther<br />Implementation of ding application on I pod to lower the operation cost and give customer the better deals.<br />Introduction of Smart Payment Plan Partners With Southwest Airlines to Provide Bill Payment Services for Their Employees<br />
  40. 40. CONLUSION<br />Southwest Airline has developed a great low cost model for the past thirty year<br />It has expanded from a tiny company with merely three aircrafts to one of today's major airliners<br />After the incident of September 11, Southwest Airline is one of the few airliners that remained profitable<br />
  41. 41. SUGGESTION<br />Southwest airline should take an opportunity to expand to greater regions<br />It should give up some of the profit to cut the ticket price even lower and upgrade its hardware.<br />
  42. 42. THANK YOU VERY MUCH<br />presented by<br /><ul><li> KUNAL GHOSH
  43. 43. RAM PANCHAL
  44. 44. MRUDULA GAWDE
  45. 45. BOWSMIKA VADLAKONDA
  46. 46. JUHI CHOUBEY
  47. 47. POOJA PATHAK
  48. 48. DINKY MEHTA</li>

×