Southwest Airlines
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Southwest Airlines began as a small regional airline serving three cities in Texas. It now serves over 100 cities after expanding across the US following airline deregulation. Southwest has achieved consistent profits for over 30 years using a low-cost business model. It focuses on excellent customer service and maintaining a unique company culture, earning high employee satisfaction. As it expands further, Southwest will face new challenges from competitors and operational issues.
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Southwest Airline 2009
Southwest Airlines strives to provide outstanding customer service at the lowest fares possible. While their current mission focuses on customer service, their proposed vision aims to become the new generation of air travel providing luxury at an affordable price. Southwest analyzes their strengths such as their large market share and weaknesses like only flying one airplane model. They develop strategies to leverage opportunities in the growing travel market and address threats from competitors offering newer planes and amenities.
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Southwest Airlines has been successful since 1971 by maintaining a low-cost structure and offering low fares. Key issues they face include rising costs of operations and competitive/economic factors. Their mission is dedicated customer service with warmth and friendliness. They pursue strategies of broad differentiation, low costs and fares to achieve objectives of maintaining low costs while offering low fares.
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Southwest Airlines has been successful due to its low-cost operating model and focus on customer service. It was founded in 1971 with a mission of affordable air travel and friendly customer service. Southwest utilizes point-to-point routes with direct flights and focuses on maintaining low operating costs through fuel efficiency and high aircraft utilization. Its core competencies include low operating costs per plane, an economical route network, a customer-focused culture, and high aircraft usage. Key factors in its success have been maintaining low fares, safety, reliability, direct flights, quality service, and employee satisfaction.
SOUTHWEST AIRLINES Strategic Evaluation
Southwest Airlines has remained profitable for 41 years due to its low-cost business model and strategic decisions. It operates with high efficiency through short-haul, high frequency flights on a single aircraft fleet. Southwest also benefits from bulk discounts, low training and maintenance costs from its exclusive use of Boeing 737s. Additionally, its early adoption of fuel hedging strategies protected it during periods of high fuel prices. Looking ahead, the consultant recommends Southwest capitalize on its brand, expand into new markets like South America, continue hedging fuel, invest in alternative fuels, and consider new business units to enter niche markets.
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Southwest Airline 2009
Southwest Airlines strives to provide outstanding customer service at the lowest fares possible. While their current mission focuses on customer service, their proposed vision aims to become the new generation of air travel providing luxury at an affordable price. Southwest analyzes their strengths such as their large market share and weaknesses like only flying one airplane model. They develop strategies to leverage opportunities in the growing travel market and address threats from competitors offering newer planes and amenities.
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Southwest Airlines has been successful since 1971 by maintaining a low-cost structure and offering low fares. Key issues they face include rising costs of operations and competitive/economic factors. Their mission is dedicated customer service with warmth and friendliness. They pursue strategies of broad differentiation, low costs and fares to achieve objectives of maintaining low costs while offering low fares.
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Southwest Airlines has been successful due to its low-cost operating model and focus on customer service. It was founded in 1971 with a mission of affordable air travel and friendly customer service. Southwest utilizes point-to-point routes with direct flights and focuses on maintaining low operating costs through fuel efficiency and high aircraft utilization. Its core competencies include low operating costs per plane, an economical route network, a customer-focused culture, and high aircraft usage. Key factors in its success have been maintaining low fares, safety, reliability, direct flights, quality service, and employee satisfaction.
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Southwest Airlines has grown since 1967 to become one of the largest low-cost carriers in the world through a strategy of cost leadership, differentiation, and focus. It keeps costs low by operating a single aircraft type, using secondary airports, and having an average of three cabin crew. Southwest differentiates by offering fun experiences, pets on flights, and bag-free travel. The company focuses on serving price-sensitive and convenient travelers with frequent, reliable flights on shorter routes comparable to driving times.
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Southwest Airlines has achieved success through a low-cost leadership strategy while maintaining high customer service standards. An analysis of Southwest and the airline industry examines Southwest's internal strengths like its unique culture and cost-cutting approach. The airline industry forces model reveals threats from substitutes and supplier bargaining power. Opportunities exist for Southwest in international expansion, though changing consumer preferences pose challenges to its stripped-down model. Future industry profitability depends on balancing low fares with improving onboard experiences.
Southwest airlines ppt
Southwest Airlines prioritizes putting employees first to ensure good customer service. It aims to get passengers to their destinations on time at the lowest fares while providing a fun experience. Southwest operates over 500 Boeing 737 aircraft on more than 3,300 daily flights serving 58 cities across the United States. It has achieved profitability for 36 consecutive years through strategies like point-to-point routes, fuel hedging, and third-degree price discrimination.
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Strategic Management Case Discussion on Southwest Airline
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Five forces, swot and internal analysis of southwest airlines and the airline...
Five forces, swot and internal analysis of southwest airlines and the airline...
Similar to Southwest Airlines
TB0333 Rev. 032017Copyright © 2017 Thunderbird School o.docx
TB0333
Rev. 03/2017
Copyright © 2017 Thunderbird School of Global Management, a unit of the Arizona State University Knowledge Enterprise. This
case was written by Professor Andrew Inkpen with research assistance from Chee Wee Tan, Andrew Cohen, Valerie Degroot, Wes
Edens, Prita John, Jairaj Mashru, Sandip Patil, and Arturo Wagner for the sole purpose of providing material for class discussion.
It is not intended to illustrate either effective or ineffective handling of a managerial situation. Any reproduction, in any form, of
the material in this case is prohibited unless permission is obtained from the copyright holder.
Andrew Inkpen
Southwest Airlines
You are now free to move about the country.™
Southwest Airlines (Southwest), the once scrappy underdog in the U.S. airline industry, was one of the largest
U.S. airlines and, based on number of passengers, one of the largest in the world. The company, unlike all of its
major competitors, had been consistently profitable for decades and had weathered energy crises, the September
11 terrorist attacks, and the 2008-09 recession. An insight into Southwest’s operating philosophy can be found
in the company’s 2001 annual report:
Southwest was well poised, financially, to withstand the potentially devastating hammer blow of
September 11. Why? Because for several decades our leadership philosophy has been: we manage in
good times so that our Company and our People can be job secure and prosper through bad times.…
Once again, after September 11, our philosophy of managing in good times so as to do well in bad
times proved a marvelous prophylactic for our Employees and our Shareholders.
Now in its 45th year of service, Southwest was facing some major challenges. Legacy carriers in the United
States had become more efficient, and the mega-mergers involving Delta/Northwest, Continental/United, and
American/US Airways were shaking up the industry. Smaller companies like JetBlue, Alaska, and Spirit were
pressuring Southwest’s cost advantage and low-fare focus. Southwest had the highest labor cost per employee
in the U.S. airline industry. With more than 50,000 employees, the company was a long way from the small
scrappy upstart challenging the industry with its innovative strategy.
The U.S. Airline Industry
The U.S. commercial airline industry was permanently altered in October 1978 when President Jimmy Carter
signed the Airline Deregulation Act. Before deregulation, the Civil Aeronautics Board regulated airline route
entry and exit, passenger fares, mergers and acquisitions, and airline rates of return. Typically, two or three carriers
provided service in a given market, although there were routes covered by only one carrier. Cost increases were
passed along to customers, and price competition was almost nonexistent. The airlines operated as if there were
only two market segments: those who could afford to fly, and those who couldn’t.
Deregulation sent airline fares tumbling ...
TB0333 Rev. 032017Copyright © 2017 Thunderbird School o.docx
TB0333
Rev. 03/2017
Copyright © 2017 Thunderbird School of Global Management, a unit of the Arizona State University Knowledge Enterprise. This
case was written by Professor Andrew Inkpen with research assistance from Chee Wee Tan, Andrew Cohen, Valerie Degroot, Wes
Edens, Prita John, Jairaj Mashru, Sandip Patil, and Arturo Wagner for the sole purpose of providing material for class discussion.
It is not intended to illustrate either effective or ineffective handling of a managerial situation. Any reproduction, in any form, of
the material in this case is prohibited unless permission is obtained from the copyright holder.
Andrew Inkpen
Southwest Airlines
You are now free to move about the country.™
Southwest Airlines (Southwest), the once scrappy underdog in the U.S. airline industry, was one of the largest
U.S. airlines and, based on number of passengers, one of the largest in the world. The company, unlike all of its
major competitors, had been consistently profitable for decades and had weathered energy crises, the September
11 terrorist attacks, and the 2008-09 recession. An insight into Southwest’s operating philosophy can be found
in the company’s 2001 annual report:
Southwest was well poised, financially, to withstand the potentially devastating hammer blow of
September 11. Why? Because for several decades our leadership philosophy has been: we manage in
good times so that our Company and our People can be job secure and prosper through bad times.…
Once again, after September 11, our philosophy of managing in good times so as to do well in bad
times proved a marvelous prophylactic for our Employees and our Shareholders.
Now in its 45th year of service, Southwest was facing some major challenges. Legacy carriers in the United
States had become more efficient, and the mega-mergers involving Delta/Northwest, Continental/United, and
American/US Airways were shaking up the industry. Smaller companies like JetBlue, Alaska, and Spirit were
pressuring Southwest’s cost advantage and low-fare focus. Southwest had the highest labor cost per employee
in the U.S. airline industry. With more than 50,000 employees, the company was a long way from the small
scrappy upstart challenging the industry with its innovative strategy.
The U.S. Airline Industry
The U.S. commercial airline industry was permanently altered in October 1978 when President Jimmy Carter
signed the Airline Deregulation Act. Before deregulation, the Civil Aeronautics Board regulated airline route
entry and exit, passenger fares, mergers and acquisitions, and airline rates of return. Typically, two or three carriers
provided service in a given market, although there were routes covered by only one carrier. Cost increases were
passed along to customers, and price competition was almost nonexistent. The airlines operated as if there were
only two market segments: those who could afford to fly, and those who couldn’t.
Deregulation sent airline fares tumbling.
Southwest Airlines Portfolio
This document provides an overview of Southwest Airlines, including its history, business model, operations, and future plans. Some key points:
- Southwest Airlines was founded in 1971 and has been profitable for 39 consecutive years, maintaining success through economic downturns that impacted other airlines.
- It operates as a low-cost carrier, focusing on reducing costs through point-to-point routes, owning aircraft, streamlined scheduling, and high asset utilization.
- Southwest owns most of its aircraft fleet rather than leasing to reduce long-term costs. It also only flies Boeing 737s to reduce training and maintenance expenses.
- Marketing emphasizes low fares, customer service, and efficiency to offer an
1southwest (1)
Southwest Airlines is a major US airline known for low fares and high customer satisfaction. It began in 1971 and now operates nearly 400 Boeing 737 aircraft to 59 US cities. In fiscal 2003, Southwest achieved $5.9 billion in revenues, with passenger revenue accounting for 96.7% of sales. Southwest has consistently high profitability and market share compared to other airlines. It aims to continue providing low fares and high frequency short-haul service while maintaining low costs.
Read Case 10 Southwest Airlines. Answer questions 1-4 in a three.docx
Read Case 10: Southwest Airlines. Answer questions 1-4 in a three to five page APA style paper, and supported with the concepts outlined in your text and from your previous classes.
1. Describe the current state of the airline industry and analyze what an airline can do to be successful in the current industry climate.
2. Perform a SWOT analysis for Southwest Airlines.
3. Assess the competitive position of Southwest Airlines by completing a competitor profile for Southwest airlines and at least two of its major competitors.
4. What alternatives does Southwest Airlines face to address the problem of declining financial performance?
Southwest Airlines 2008
1 In 2008, Southwest Airlines (Southwest), the once scrappy underdog in the U.S. airline industry, carried more domestic passengers than any other U.S. airline. The company, unlike all of its major competitors, had been consistently profitable for decades and had weathered recessions, energy crises, and the September 11 terrorist attacks. In the first quarter of 2008, the company was profitable and experienced record first quarter revenue and a record pas- senger load factor (percentage of available seats sold). However, the earnings release made it clear that the “threat of volatile and unprecedented jet fuel prices” was a major issue that threatened future growth. Operating expenses were rising, and Southwest announced that it would cut 2009 growth in available seats to less than 3%. Over the previous decade, growth had been about 5–10% a year. This cut in planned growth was consistent with previous responses to difficult environments. An insight into Southwest’s operating philosophy can be found in the company’s 2001 Annual Report:
Southwest was well poised, financially, to withstand the potentially devastating hammer blow of September 11. Why? Because for several decades our leadership philosophy has been: We manage in good times so that our Company and our People can be job secure and prosper through bad times. . . . Once again, after September 11, our philosophy of managing in good times so as to do well in bad times proved a marvelous prophylactic for our Employees and our Shareholders.
THE U.S. AIRLINE INDUSTRY
The U.S. commercial airline industry was permanently altered in October 1978 when Presi- dent Carter signed the Airline Deregulation Act. Before deregulation, the Civil Aeronautics Board regulated airline route entry and exit, passenger fares, mergers and acquisitions, aattract and retain the world’s top talent have combined to create a combination of path-dependent resources that are very difficult for even the wealthiest software and Internet companies worldwide to easily emulate, acquire, or accelerate. It will take years for any competitor to develop the expertise, infrastructure, reputation, and capabilities to compete effectively with Google. Coca-Cola’s brand name, Gerber Baby Food’s reputation for quality, and Steinway’s exper- tise in piano manufacture would ta ...
Southwest Airlines: A Case Study
Southwest Airlines has been profitable for 37 years through a unique low-cost business model. They streamline operations to save money and pass savings to customers through low fares. Southwest flies short point-to-point routes daily using Boeing 737 aircraft, turns planes around extremely fast, hedges fuel prices to save billions, and pioneered services like same-day freight. Their consistency in earning profits even during industry problems allows flexibility that burdened carriers lack. However, always running half-full flights and price wars present risks to maintaining low fares long-term.
ENGLISH CLASS [email protected]First Draft due tba Pro.docx
ENGLISH CLASS: [email protected]
First Draft due: tba
Prof. John Colagrande, Jr.
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Term Paper Assignment / Final Exam
Write a 5-6 page research / term paper.
Mission: This paper will require you choosing a topic, doing research, formulating a thesis, and writing a formal essay. You will be composing more than one draft, while using documented research, or quotes. This essay ultimately serves as your final exam.
In addition, you are required to complete an annotated bibliography.
See annotated bibliography handout (coming soon).
Your formal essay should have an introduction, body paragraphs, and a conclusion.
The body paragraphs should develop points that you plan to present.
You must use at least 4 of your sources.
The key here is to choose a strong topic and develop a strong thesis. A strong topic should be a topic you’re interested in, and a topic that readily has a lot of information.
A strong thesis should have three distinct original points to develop, as well as a stance.
Example of a strong thesis: Steroids in baseball is wrong because it creates an unfair playing field, harms the health of users, and taints the integrity of the game.
Audience: Academic. This is a formal essay. No first person. No colloquialisms.
Use the 5-editing techniques after you’ve written the first draft
a. eliminate redundancies
b. avoid wordy expressions
c. cut awkward sentence openings
d. vary your sentence structure
e. use strong verbs
All papers must be typed, double spaced, using a 12pt Times New Roman font.
W13308
WESTJET AIRLINES: INFORMATION TECHNOLOGY GOVERNANCE
AND CORPORATE STRATEGY
Malcolm C. Munro and Sharaz Khan wrote this case solely to provide material for class discussion. The authors do not intend to
illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other
identifying information to protect confidentiality.
This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) [email protected]; www.iveycases.com.
Copyright © 2013, Richard Ivey School of Business Foundation Version: 2017-03-06
By any reasonable measure, WestJet Airlines had been a remarkable success. The company began
modestly in 1996 as a regional carrier flying three used Boeing 737-200 aircraft to five western Canadian
cities. By 2011, the airline boasted a fleet of more than 90 Boeing Next-Generation 737 aircraft serving
85 destinations in 18 countries and employed over nine thousand people. The company had become the
second-largest carrier in Canad ...
CASE 16 Southwest Airlines Andrew Inkpen and ex.pdf
CASE 16 Southwest Airlines Andrew Inkpen and exit, passenger fares, mergers and
acquisitions, and In 2013. Southwest Airlines (Southwest), the once scrappy routes covered by
only one carrier. Cost increases were of the largest in the world. The company, unlike all of its
were only two market segments: those wio coald afford tn terrorist attacks, and the 2008-og
recession. An insight many new firms to enter the market. The finaticial impact airline rates of
return. Typically, two or three carriers were You are now free to move about the country
provided service in a given market, although there underdog in the US. airline industry, was one
of the larg passed along to customers, and price competition was ere est US airlines and, based
on number of passengers, one almost nonexistent. The airlines operal major competitors, h to fly,
and those who couldn\'t decades and had weathered energy crises, the September ad been
consistently profitable for Deregulation sent airline fares tumbl allowed into Southwest\'s
operating philosophy can be found in on both established and new airlines was eirmous. The fuel
crisis of 1979 and the air traffic controilers strike e company\'s 2001 annual report Southwest
was well poised, financially, to withstand in 1981 contributed to the industry\'s diffiruities, as did
the potentially devastating hammer blow of September ii the severe recession that hit the United
Stales during Why? Because for several decades our leadership phi the early 198os. During the
first decade of deregulation losophy has been: we manage in good times so that our more than
15o carriers, many of them start-up airlines Company and our People can be job secure and
prosper collapsed into bankruptcy. Eight of the u major air through bad times.... Once again,
after September in, our lines dominating the industry in 1978 ended up filing philosophy of
managing in good times so as to do well for bankruptcy, merging with other carriers, or simply
in bad times proved a marvelous prophylactic for our disappearing from the radar screen.
Collectively, the industry made enough money during this period to buy As Southwest entered
its 4and year of service, the two Boeing 747s. The three major carriers that survived company
was facing some major challenges. Legacy intact-Delta, United, and American ended up with
carriers in the United States had become more efficient, 80% of all domestic U.S. air traffic and
67% of trans- Employees and our Shareholders and the recent mega-mergers involving
Delta/Northwest, Atlantic business. Exhibits 1A and iB provide summary Continental/United,
and American/US Airways were shaking up the industry. Smaller companies like jetBlue,
financial data for the major airlines. The rapid growth of Southwest was in stark contrast to the
much slower aska, and Spirit were pressuring Southwest\'s cost growth of its major competitors
advantage and low-fare focus. A major internal c Competition and lower fares led to greatly
expanded of AirTra.
Southwest Airlines: A Case Study
Southwest Airlines has consistently been profitable for 37 years through a low-cost business model. It focuses on short, frequent flights without hubs using only Boeing 737 aircraft. Southwest saves on fuel costs through hedging and efficient operations like fast turnarounds. It aims to pass these savings to customers through low fares while maintaining a fun, customer-focused culture. Though competitors try to copy its model, Southwest prides itself on excellent customer service.
AMR 2008 Financial Analysis
AMR Corporation is an American airline holding company headquartered in Fort Worth, Texas. It is the parent company of American Airlines, which operates domestic and international flights. AMR has been in business since 1934 and currently employs over 84,000 people with a fleet of 900 aircraft serving 250 cities in 40 countries. In 2008, AMR reported total revenue of $23.766 billion but total expenses of $25.655 billion, resulting in an operating loss of $1.889 billion for the year. AMR has a high debt ratio of 0.9 and a current ratio of 0.63. The presentation recommends that AMR continue cutting costs, focus on restructuring long-term debt, increase aircraft lease buy-
Jet Airways
- Jet Airways was facing a crisis as its pilots union, NAG, went on a simulated strike through mass sick leaves to protest the termination of four pilots. This led to the cancellation of over 800 flights over five days, negatively impacting 20,000 passengers and causing Jet Airways to lose $10 million in revenue. The issue was resolved when Jet Airways agreed to reinstate the four terminated pilots and form a consultative group with pilot representatives.
Finalsw
Herbert Kelleher started Southwest Airlines in 1967 in Texas and served as CEO until 2007. Southwest pioneered the low-cost carrier model, offering low fares without frills like meals or assigned seating. It has grown to be the largest airline in the U.S. in terms of passengers carried annually. Southwest focuses on providing low-cost, high-frequency, point-to-point service on Boeing 737 aircraft between major cities within the U.S.
Jet airways 2
Jet Airways began operations in 1992 and over several decades grew to become India's largest private airline, at one point operating over 70 destinations worldwide. However, rising costs, increased competition from low-cost carriers, fluctuating oil prices, and poor management decisions contributed to significant financial losses. By 2019, Jet Airways had accumulated massive debts and was only operating a handful of aircraft with a 1% market share before ceasing all operations. The collapse affected over 20,000 employees and had ripple effects on other airlines, investors, and the broader Indian aviation industry.
Jet airways
This document provides information about Jet Airways, India's largest private airline. It discusses Jet Airways' market share, fleet, destinations served, and annual passenger volume. It also profiles the airline's founder and CEO Naresh Goyal and provides a timeline of key dates in Jet Airways' history. Additionally, the document summarizes a recent pilots' strike in September 2008 that resulted in flight cancellations and losses of $8 million per day for Jet Airways. It outlines the resolution of the strike with rehired pilots and no punitive actions.
MBA Essay Sample
This paper will illustrate the issue of bankruptcy that bombarded the Delta Airlines in description of the situation and how it came to take place and how it affected the economy globally, will be discussed in the paper. So visit here http://www.mbadissertation.org/sample-paper-on-organizational-behaviour/
South west financial note 2011
Southwest Financial note by - Jean Lemercier, Cécilia Cosnard des Closets, Charline Poher, Derek Fleck and Violaine Lièvre. Including risk assessment, peers comparison, internal financial analysis and environmental analysis.
Similar to Southwest Airlines (16)
TB0333 Rev. 032017Copyright © 2017 Thunderbird School o.docx
TB0333 Rev. 032017Copyright © 2017 Thunderbird School o.docx
TB0333 Rev. 032017Copyright © 2017 Thunderbird School o.docx
TB0333 Rev. 032017Copyright © 2017 Thunderbird School o.docx
Read Case 10 Southwest Airlines. Answer questions 1-4 in a three.docx
Read Case 10 Southwest Airlines. Answer questions 1-4 in a three.docx
ENGLISH CLASS [email protected]First Draft due tba Pro.docx
ENGLISH CLASS [email protected]First Draft due tba Pro.docx
CASE 16 Southwest Airlines Andrew Inkpen and ex.pdf
CASE 16 Southwest Airlines Andrew Inkpen and ex.pdf
Southwest Airlines
- 1. By: Andrew Streff, Brett Burger, Graham Steen, Monica Zakrzewicz, Ujiro Okiomah & Sam Smith
- 2. Outline History & Overview The Five Forces Performance Southwest Spirit Statistics Threats & Future Challenges
- 3. History of Southwest Airlines The Southwest Airlines was proposed as a local airline serving only three cities in Texas. San Antonio, TX Houston, TX Dallas, TX © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 4. History of Southwest Airlines On June 18th 1971 Southwest Airlines makes its first commercial flight. October 1978 President Carter signs the Airline Deregulation Act. President Jimmy Carter signs the Airline Deregulation Act. © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 5. History of Southwest Airlines October 1996 Southwest Airlines expands into the Northwestern United States. In 2005 Southwest Airlines carried more domestic passengers than any other U.S. airline. © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 6. Outline History & Overview The Five Forces Performance Southwest Spirit Statistics Threats & Future Challenges
- 7. Porter’s Five Forces Supplier power Buyer power Substitutes *Southwest Airlines is performing well in a bad industry New entrants Rivalry *Southwest Airlines business strategy is Low-cost leadership © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 8. Outline History & Overview The Five Forces Performance Southwest Spirit Statistics Threats & Future Challenges
- 9. Performance Earned a profit for 32 consecutive years: - Fly more passengers per employee than any other airline - Have fewest number of employees per aircraft - Own almost 80% of there aircrafts © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 10. Performance Has had the fewest customer complaints since 1987 Most admired airline in the World, 1997-2003 Maintained a debt-to-equity ratio much lower that the industry average © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 11. Outline History & Overview The Five Forces Performance Southwest Spirit Statistics Threats & Future Challenges
- 12. Southwest Spirit External Spirit: Great Customer Service. Ex: A gate agent volunteering to watch a dog for two weeks; Austin passenger needing a kidney transplant operation was flown there by a southwest pilot in his private plane Flight attendants are encouraged to have fun, jokes and have humorous announcements. © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 13. Southwest Spirit Internal Spirit: Employment at Southwest is highly desired. In 2004, 1,706 employees were hired and 225,895 applications were received. An employee had not been laid off since 1971. Employee turnover hovered around 7%; the lowest rate in the industry. © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 14. Southwest Spirit Internal Spirit: Camaraderie in the Company. • New-employee orientation, known as the new-hire celebration -Wheel of fortune, scavenger hunts, Southwest Airline Shuffle • Advanced Employee Training -Three-day classes called “Leading with Integrity”. “Walk-a-Mile Day” • Employees conserve fuel during flights, ice storage equipment, luggage faced handles out. © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 15. Southwest Spirit Internal Spirit: Corporate labor relations. 81% of employees were unionized Southwest pilots belong to independent union In 1974 Southwest was the first airline to introduce employee profit sharing. Employees owned about 10% of the company’s stock. © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 16. Outline History & Overview The Five Forces Performance Southwest Spirit Statistics Threats & Future Challenges
- 17. Statistics Southwest airplanes flew an average of eight times a day, nearly double the industry average. Southwest usually turns around airplanes in 15 minutes, as opposed to the 45 minute industry average. Southwest uses only one type of airplane, the Boeing 737. American Airlines uses six different airplanes © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 18. Statistics Southwest pilots belong to an independent union. Other airline pilots belong to the Airline Pilots Association. In 2005, Southwest pilots had the highest salaries for pilots of narrow-body jets (38% above United Airline’s) © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 19. Resources • Spirit & High Moral • Routes & Lack of Hub • Reputation • One type of Plane © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 20. Outline History & Overview The Five Forces Performance Southwest Spirit Statistics Threats & Future Challenges
- 21. Threats On entering the Northeast market, Southwest Airlines would now be competing directly with JetBlue Airways also a low-fare carrier out of NYC’s JFK International Airport. *Currently, JetBlue has 60 A320 Airbus aircrafts and orders with Airbus for as many as 233 A320 aircrafts © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 22. Threats With the potential of the Northeast market, several threats to Southwest’s smooth operations such as airport congestions, air-traffic control delays, lengthy turnaround time at airport gates and severe weather. © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 23. Future Challenges In 2005, Southwest had the highest salaries for pilots of narrow-body jets (38% above those at United Airlines). They just concluded a bitter contract negotiation with flight attendants that resulted in a richer than-expected settlement for the union. © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 24. Recommendations The reputation of Southwest Airlines in the Western and Southern part of the country would be enough to help them break into the Northeast market. Southwest Airlines could also break into the region by providing special fares to travelers flying to warmer climate zones such as Florida and other states in that region. © 2008 G5 Consulting Firm LLC. All Rights Reserved
- 25. Questions...