Southwest has mastered the low-price model and has the financial results to prove it. Why don’t the other airlines copy Southwest’s model? -By Sravya Tanmayee

1. SOUTHWEST AIRLINES
AND THEIR SUCCESS STORY!

2.  A very productive and loyal workforce is a key
reason for it’s success.
 Such loyalty and productivity among the
employees were brought by the way southwest’s
Management treats them.

3. It recruits employees who work for a company they love,
instead of those who demand simple paycheck at the end of
the week.
 Being sarcastic is one the key qualifications a person
should need to even apply.
The employees are rewarded according to the feed back
given by the customers.

4. MOREOVER THEY ARE ALWAYS
READY TO TAKE RISKS AND
CONQUER THE WORLD
These decisions have helped Southwest be flexible
in the face of the recent decreases in airplane
passengers caused by the 9/11 terrorist attacks and
the world economic crisis.

5. FOLLOWING ARE THE STEPS TAKEN BY
SOUTHWEST TO SAVE MONEY AND PASS TO
CUSTOMERS THROUGH LOW FARES :

6. 1.FLIES OVER 3100 SHORT AND POINT TO POINT
TRIPS IN A DAY.
Thus adding more passengers per flight.
They have lower turn around times and a unique boarding process
without assigned seating.
By providing lower affordable flying for passengers, this
results in faster turnarounds and lower fares.

7. 2.FAST TURN AROUND SERVICE
 The mechanics and management can substitute the aircraft
and can reschedule flight crews or transfer mechanics in a
timely manner.

8. 3.UNIQUE BOARDING PASS
4.PROGRAM TO HEDGE FUEL PRICES BY PURCHASING
OPTIONS YEARS IN ADVANCE LONG TERM CONTRACT.

9. 5.LIGHTER THE PLANES LESS THE
FUEL.
 EVERY MINUTE THING USED IS MADE OF SPECIAL LIGHTER
FABRICS.
 THEY DON’T EVEN CARRY MORE WATER IN THE PLANE TO REDUCE
WEIGHT
 THEY ARE STRICT AND CAUTIOUS ABOUT THE WEIGHT OF
LUGGAGES

10. 6.IT HAS NEVER SERVED MEALS AND DOESN’T
HAVE ADVANCED SEAT RESERVATIONS.
AND FLIES ONLY BOEING AIRPLANES.

11. Southwest is one of those airlines who are consistently
earning profits despite the problems the industry is
facing.
With such stability, the corporation is able to make
decisions and adjust policies, which other heavily
burdened airlines may not be able to imitate.

12. There are airlines who would not want to copy the
Southwest Airlines model.
 They pride themselves more on service and feel that
because their service is better, they can charge a
premium price on their tickets.
Also there are people who would still pay to fly with
these airlines.

13. Recap:
Following are the steps taken by Southwest to save money and pass
to customers through low fares;
Flies over 3100 short and point to point trips in a day.
 Fast turn around service .
 Unique boarding pass
 Operate Boeing 737 for all its flight which simplifies the training
process for employees and save time and manpower.
 Program to hedge fuel prices by purchasing options years in
advance long term contract.
 Lighter planes as lighter planes use less fuel.
 It has never served meals, does not have advanced seat
reservations, and flies only Boeing airplanes.
Credits: Images.google.com

14. A Presentation by Sravya Tanmayee

15. SRAVYA TANMAYEE, IIITDM-kancheepuram
during an intern by
Prof. Sameer Mathur ,IIM Lucknow

16. Thank you!