Southwest Airlines Co. (NYSE: LUV) is a major U.S. airline headquartered in Dallas, Texas, and the world's largest low-cost carrier.

1. “Low Fares. Nothing to hide.“
PRESENTED BY
AJEETESH
PARVATHI RAO
ANCHAL
AMANJOT

2. HISTORY
• Southwest Airlines Co. is a major U.S. airline, the world's largest low-cost
carrier, headquartered in Dallas, Texas.
• The airline was established in 1967 by Herb Kelleher and Rollin King. They
adopted its current name Southwest Airlines in 1971.The airline has more
than 52,000 employees as of July 2016 and operates more than 3,900
departures a day during peak travel season. As of 2014, it carried the most
domestic passengers of any U.S. airline. As of July 2016, Southwest
Airlines has scheduled services to 98 destinations in the United States and
seven additional countries with service to three airports in Cuba expected to
begin later this year, subject to governmental approvals.
• Southwest Airlines has used only Boeing 737s, except for the period from
1979 to 1987 when it leased some Boeing 727s from Braniff International
Airways. As of January 2016, Southwest is the largest operator of
the Boeing 737 worldwide, with over 700 in service, each averaging six
flights per day.

3. Timeline…
June 18, 1971
Began airline service
Flights to Houston, Dallas, and San Antonio
1977
SW stock listed on NYSE as "LUV"
1982
Appointed Herbert D. Kelleher
President, CEO, & Chairman of the Board
1984
1 in customer satisfaction (4th year in a row)
 1990
announce billion dollar revenue mark
Officially declared a "Major" airline!
May 2003
Top ranked domestic passenger airliner
2006
Southwest’s 34th consecutive year of profitability

4. Leadership / Structure:
Herbert D. Kelleher Executive Chairman of the Board
Gary C Kelly
Vice Chairman of the Board
and
Chief Executive Officer
Colleen Barrett
President, Secretary,
and Director

5. “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.”
Core Strategy

6. Facts / Milestones…
 Low-fare, high frequency
 Point-to-point carrier
 Largest domestic U.S. carrier
4th largest major airline in America
 More than 34,000 Employees
 Fly more than 64 million passengers a
year
 58 destination cities (59 airports)
 More than 3,200 flights a day

7. The mission of Southwest Airlines
Southwest Airlines is dedicated to the highest quality
of Customer Service delivered with a sense of warmth,
friendliness, individual pride, and Company Spirit.
Vision Statement
At Southwest, we strive to be the new generation of
flight transportation while providing luxury at a price
anyone can afford

8. Competitors

9. Revenue US$ 19.82 billion (2015)
[
Operating income US$ 4.1 billion (2015)
Net income US$ 2.2 billion (2015)
Total assets US$ 21.312 billion (2015)
Total equity US$ 7.358 billion (2015)
Employees 53,072 (2016)
Website www.southwest.com

10. Southwest’s Commitment
to its Employees
They are committed to provide their Employees a stable work
environment with equal opportunity for learning and personal growth.
Creativity and innovation are encouraged for improving the
effectiveness of Southwest Airlines. Above all, Employees will be
provided the same concern, respect, and caring attitude within the
organization that they are expected to share externally with every
Southwest Customer.

11. Southwest’s culture
These are three basic values
(“the culture”) or
philosophical pillars at
Southwest Airlines:-
• Value 1: Work should be
fun ...it can be play . . .
Enjoy it.
• Value 2: Work is important
...don’t spoil with
seriousness.
• Value 3: People are
important...each one makes
a difference.

12. Facts About Southwest Airlines
• "Southwest Airlines" wasn't the airline's original name. It was called
"Air Southwest" until 1971.
• They continued their 4-aircraft schedule with only 3 aircraft. The "10
minute turn" was invented to make the schedule work.
• Southwest's only destinations were Dallas, Houston and San Antonio
until 1975.
• Southwest acquired Morris Air in 1992. One of the founders of Morris
Air, David Neeleman, went on to start JetBlue Airways.
• In 1995, Southwest was one of the first airlines to have a website,
called the "Southwest Airlines Home Gate".

13. Facts About Southwest Airlines
• Southwest teamed with Pratt and Whitney in 2008 to develop a
pressure-washing system that allows the airline to clean engine turbine
blades at the gate. The airline estimates they improve fuel efficiency
by 1.9% with the system.
• Southwest is the largest "point to point" operator in the US. Because of
this, approximately 80 percent of their passengers are local, and only
20 percent have a connecting flight.

14. Fun Facts
In 2008, SW served:
• 55.2 million cans of soda, juices, and water.
• 12.4 million alcoholic beverages.
• 9.8 million bags of pretzels.
• 90.8 million bags of peanuts.
• 9 million snack boxes.
• 32 million other snacks.
• Southwest consumed approximately 1.5 BILLION gallons of
jet fuel in 2008.
• In 2008, Southwest moved 225 million pounds of cargo.

15. Innovation
• 1st airline to offer a profit-sharing plan to employees
beginning in 1979, employees now own about 10% of
company stock
• 1st major airline to offer “ticketless” travel system-wide
• 1st major airline to enter information superhighway by
creating its own web page
• 1st airline to offer online booking

16. Differentiation Strategy
OTHER AIRLINES SOUTHWEST
AIRLINES
Focussed on long route travels. Mainly, short route journeys.
Focussed luxury, complementary and
in-flight services.
“Fun-Loveing Attitude” for in-flight
entertainment.
Strictly adhered for a disciplinary and
sophisticated travel.
Pets Are Welcome on
Southwest(P.A.W.S)
Only cash payment, for onboard
services.
Cashless cabin (Credit Card only for
onboard purchases.

17. Focus Strategy
• Targeted two types of traveler:
1) Convenience, time-oriented travelers
2) Price sensitive leisure travelers
• “Rapid Rewards Programs” for frequent flyers.
• Frequent reliable departures
• Try to make air fares comparable to driving expenses for shorter
routes.
• Exploring North-East markets
• Code-sharing agreements for greater reach

18. SWOT Analysis

19. Strengths
• Strong fleet operations
• Dominant market position in North America
• Friendly Staff
• Best low fare carrier
• Largest airlines in the world in terms of highest number of
passengers per year
• Recognized as a great value and excellent services
• Flexible working hours even though 82% of employees are
unionized
• Strong brand image
• Highest daily domestic departures than any other commercial
U.S. airline

20. Weakness
• Declining profits and margins
• Heavy dependence on passenger revenues
• Heavy dependence on a single producer – Boeing
• Conservative growth strategy
• Limited to cities domestically
• Operates its own booking service
• Does not offer segmentation (business flights, first class, etc.)

21. Opportunities
• Recovery of US Airline Industry
• Acquisition of Air Tran Holdings
• Recovery of US tourism
• International Expansion
• Longer flights are being introduced
• Traveller traffic is expected to grow by 3.5% through
2019.

22. Threats
• Intense competition
• Regulation restrictions
• Price fluctuations in petroleum markets
• High unemployment and inflation keeps travellers
from flying
• Joint ventures can negatively affect brand image
• Exposure to Shaky American Economy