Love at southwest airline
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Transcript of Love at southwest airline
Love at Southwest
Airlines
Headquarters: P.O. Box 36611
2702 Love Field Drive
Dallas, TX 75235 Phone: 214-792-4000 Stock Symbol: LUV (NYSE)
Major domestic airline
that provides short haul,
high frequency, point-to-
point, low fare service Today, SW operates
over 400 Boeing 737
aircrafts in over 59
citiesLowest operating cost
structure in the domestic
airline industry and
consistently offers the
lowest and simplest fares
Incorporated in Texas
and commenced
Customer Service on
June 18, 1971 with 3
Boeing 737 aircrafts
serving 3 cities –
Dallas, Houston, and
San Antonio
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
Such loyalty and productivity among the employees were brought by the way
southwest’s Management treats them.
A very productive and loyal workforce is a key reason for it’s
success.
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.
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.
FOLLOWING ARE THE STEPS TAKEN BY SOUTHWEST TO SAVE MONEY AND PASS TO CUSTOMERS THROUGH LOW FARES :
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.
3100 SHORT AND POINT TO POINT TRIPS PER DAY
PUNCTUAL
The mechanics and management can substitute the aircraft and can reschedule flight crews or transfer mechanics in a timely manner.
UNIQUE BOARDING PASS
PROGRAM TO HEDGE FUEL
PRICES BY PURCHASING
OPTIONS YEARS IN ADVANCE
LONG TERM CONTRACT
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 PERMITTED
LESS WEIGHT ,LESS FUEL
IT HAS NEVER SERVED MEALS AND DOESN’T HAVE ADVANCED SEAT RESERVATIONS.
AND FLIES ONLY BOEING AIRPLANES.
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
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.
In 2004, Southwest Airline served:49 million cans of soda, juices, and water 8.1 million alcoholic beverages3.3 million bags of pretzels95.3 million bags of peanuts
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.
RECAP
DISCLAIMERCreated by Bhupendra Vishwakarma, UIT-RGPV during a marketing internship by pof. Sameer Mathur, IIM Lucknow.