Operations Management
Of
Southwest Airlines
Gaurav Asthana
Southwest Airlines
• Southwest Airlines Co. is a
major U.S. airline.
• The airline was established
in 1967.
• The world's largest low-
cost carrier
• Headquartered in Dallas,
Texas.
• Goal - Offering Great Service at Low-Cost
Southwest Airlines(cont.)
• 4Th Largest U.S Airlines (domestic)
• Covers 60 cities(59 Airports) in 30 States
• Homepage on the Internet
• Enjoyed 30 straight profitable years
• In 2003, It was named as most admired
companies in U.S by Forbes.
Background
• Founder: Businessman
Rollin King and Lawyer
Herb Kelleher(1967)
• First Scheduled Flight in
1971
• In 1974 Southwest
gained virtual monopoly
at Love Field
• In 1982 Southwest
extended its service
• In 1985 it launched
‘Just Say When’ Campaign
Background (cont.)
• Advance Purchase Fun-Fare(1986) and
Frequent Flier Program in 1987
• Triple Crown Award(1992)
• Introduced ‘SWABIZ’
• September 11,2001 Terrorist Attacks
• Worst year for Airline Industry(2002)
Operations
• Lowest Possible Fares
• Quality of Service
• Blanketing Strategy
• Turning Around Aircrafts Quickly
Southwest Operational Efficiency
• Limited Passenger Service
• Frequent, Reliable Departures
• Short-hault and point-to-point routes
• Highly Productive Ground and Gate Crews
• Low-ticket Fares and secondary or smaller
Airport
• High Aircraft Utilization
Southwest:15mins Turnaround
• Quick Turnaround
• Excellent Co-ordination
• Functions did not work in Isolation
• Limit Turnover to 15mins or less
• Limit to 20-25mins in worse conditions
Routing
(After deregulation of the Airline Industry)
• Hub and Spoke System
• Southwest’s point-to-point Flights strategy
• Interlining with other carriers
• 77% Southwest Passenger’s flew non-stop
Use of Small Airports
• Avoided Congested Airports
• Airports like Dellas Love Field and Houston
Hobby
• High Employee Productivity
• High Asset Utilization
Ticketing
• Self-Ticketing Machines (1979)
• Ticket less travel (1995)
• Rapid-Rewards
• Rewards were transferable
Boarding
• Automated Procedures
• Computer generated baggage tags
• Computer generated boarding pass
• Rapid check in
• Reusable plastic boarding passes
In Flight Services
• No Full cabin service
• No Meals on board
• Peanuts and other snacks
• Extra Seats
• No Food Carts
Aircrafts Standardization
• Boeing 737
• Extensive training
• Inventory management
• Keeping record simpler
• Flight dispatch system
• Young fleet of Aircrafts
Looking Ahead
• Non-stop Flights (Baltimore and Houston)
• Daily non-stop service (Spokane and Las-
Vegas)
• One daily non-stop flights from various cities
THANK YOU

Operations management of South West Airlines

  • 1.
  • 2.
    Southwest Airlines • SouthwestAirlines Co. is a major U.S. airline. • The airline was established in 1967. • The world's largest low- cost carrier • Headquartered in Dallas, Texas. • Goal - Offering Great Service at Low-Cost
  • 3.
    Southwest Airlines(cont.) • 4ThLargest U.S Airlines (domestic) • Covers 60 cities(59 Airports) in 30 States • Homepage on the Internet • Enjoyed 30 straight profitable years • In 2003, It was named as most admired companies in U.S by Forbes.
  • 4.
    Background • Founder: Businessman RollinKing and Lawyer Herb Kelleher(1967) • First Scheduled Flight in 1971 • In 1974 Southwest gained virtual monopoly at Love Field • In 1982 Southwest extended its service • In 1985 it launched ‘Just Say When’ Campaign
  • 5.
    Background (cont.) • AdvancePurchase Fun-Fare(1986) and Frequent Flier Program in 1987 • Triple Crown Award(1992) • Introduced ‘SWABIZ’ • September 11,2001 Terrorist Attacks • Worst year for Airline Industry(2002)
  • 6.
    Operations • Lowest PossibleFares • Quality of Service • Blanketing Strategy • Turning Around Aircrafts Quickly
  • 7.
    Southwest Operational Efficiency •Limited Passenger Service • Frequent, Reliable Departures • Short-hault and point-to-point routes • Highly Productive Ground and Gate Crews • Low-ticket Fares and secondary or smaller Airport • High Aircraft Utilization
  • 8.
    Southwest:15mins Turnaround • QuickTurnaround • Excellent Co-ordination • Functions did not work in Isolation • Limit Turnover to 15mins or less • Limit to 20-25mins in worse conditions
  • 9.
    Routing (After deregulation ofthe Airline Industry) • Hub and Spoke System • Southwest’s point-to-point Flights strategy • Interlining with other carriers • 77% Southwest Passenger’s flew non-stop
  • 10.
    Use of SmallAirports • Avoided Congested Airports • Airports like Dellas Love Field and Houston Hobby • High Employee Productivity • High Asset Utilization
  • 11.
    Ticketing • Self-Ticketing Machines(1979) • Ticket less travel (1995) • Rapid-Rewards • Rewards were transferable
  • 12.
    Boarding • Automated Procedures •Computer generated baggage tags • Computer generated boarding pass • Rapid check in • Reusable plastic boarding passes
  • 13.
    In Flight Services •No Full cabin service • No Meals on board • Peanuts and other snacks • Extra Seats • No Food Carts
  • 14.
    Aircrafts Standardization • Boeing737 • Extensive training • Inventory management • Keeping record simpler • Flight dispatch system • Young fleet of Aircrafts
  • 15.
    Looking Ahead • Non-stopFlights (Baltimore and Houston) • Daily non-stop service (Spokane and Las- Vegas) • One daily non-stop flights from various cities
  • 17.