Both the Southwest Airlines and Federal Aviation Administration (FAA) were held responsible for this scandal. The safety reports were meant to comply with the safety regulations related to inspection of its jet aircrafts. FAA was responsible for assuring the facts that Southwest Airlines complied with all the required safety regulations related to the aircrafts flown by them. However, later it was discovered that Southwest Airlines flew around 48 jets without having done the required safety inspections for flying the aircrafts. Next when Southwest Airlines discovered this fact it mentioned that it had stopped flying the jets which involved any kind of safety issues. However, in reality the company continued to fly those planes even after finding out that it did not comply with the required safety standards. Southwest Airlines was lucky that it did not result in any type of accidents which was a probability given that the safety norms were not followed in the aircrafts. FAA was also equally responsible for this scandal because they were unable to detect such safety failures in the flights of Southwest Airlines. Some FAA officials might have also been involved in this scandal. It is recommended that the safety norms related to airlines industry in United States should be more stringent and any company found not complying with the safety rules and regulations should be severely punished. The whole safety procedures followed by the airlines companies like Southwest Airlines should be regulated by the regulatory authorities like FAA. This would ensure the occurrence of such kind of scandals as cited in this study and ensure a high level of security for the passengers flying on the aircrafts. Introduction Southwest Airlines is one of the largest domestic airlines in United States which was established in the year 1967. Recently there was a major issue related to safety violations in some of the planes flown by Southwest Airlines. This violation of safety regulations by Southwest Airlines falls in the list of one of the corporate scandals that took place in United States. This corporate scandal was found to occur during 2007 and 2008. Both Federal Aviation Administration (FAA) and Southwest Airlines were found responsible for such safety violations in the US airlines industry. This study is all about the corporate scandal related to violations of safety regulations by Southwest Airlines. First of all a brief summary about the company background has been presented in this study. Then a summary of the scandal has been discussed in this study. In addition to this, how the scandal was performed by the different involved individuals and authorities and its various impacts have also been discussed in this study. Lastly some of the recommendations have been included which relates to how these types of scandals can be prevented from occurring in future. Company Overview Southwest Airlines Co is an US based public company headquartered at Dallas, Texas. It was founded in the year 1967 (Yahoo Finance, 2012). Originally it was known as Air Southwest. Later it was renamed as Southwest Airlines and commenced its business operations in the year 1971. The shares of the company are traded in the New York Stock Exchange (NYSE) with the ticker symbol “LUV”. Southwest Airlines is engaged in the business of providing scheduled transportation for its customers through air in the
SOUTHWEST AIRLINES Table of Contents Table of Contents 2 Executive Summary 3 Introduction 4 Company Overview 4 Scandal Summary 5 Scandal Methodology 6 Impacts of the Scandal 7 Conclusion and Recommendations 8 References 10 Executive Summary Southwest Airlines is an US based airlines company which is regarded to be one of the largest domestic airlines in the country…
The paper tries to identify the performance of the company before and after the deregulation. It has been noted that the performance of the airline industry has been quite unstable because of deregulation. However, Southwest Airlines has been able to maintain its position because of its innovative strategy of low cost airlines and also due to its commendable service towards the passengers.
This organization provides car rental facilities to its customers and the company has made arrangements for booking the car online. The company also arranges hotel facilities to its customers according to their requirements. Different vocation packages and cruises are other attractive services offered by Southwest Airlines.
The company has a unique business model of careful financial planning, control, efficient costing and a quick decision making process. Such unique business models have been known to ensure continued success in business organisations (Schein, E. H. 1980).
One American company which has shown remarkable success and instinct for survival is Southwest Airlines (Gittel, 21). Southwest Airlines is an immensely successful airline which has maintained profitability even in extremely tough economic conditions (Freiberg, 25).
Its corporate culture, famously non-traditional, increased employee loyalty and productivity. The influence of that culture on its business model and strategic implementation resulted in a highly successful business. The combination of a low-cost strategy and distinctive culture has allowed Southwest Airlines to position itself as an industry leader while remaining a very popular place to work.
Major airlines gave up competing with SWA’s low cost service for market share. SWA’s continued expansion has forced the other airlines to bring about a major change in their cost structures by developing new low-cost services in short-haul markets
The past performance of the company clearly specifies that it has managed to achieve the success through intensive strategic management practices. Strategic management has been defined by Meyer as “the process by
The discussion explains about the history of the company along with its organizational values in terms of its mission and vision. Moreover, a SWOT analysis of Southwest Airlines has been performed in the discussion to assess its competitive presence in the global market scenario.