Southwest Airlines is known as a different airline. It is one of the few airlines in the industry which is consistently profitable. Most attribute it to their remarkable cost saving mechanisms, but as this case study will show there is considerably lot more to it…
Most businesses are customer centered. Customer comes first regardless. Not so, Southwest airlines, where customer actually comes in second. The employee comes in first. Clearly this is against convention ("rules") but it does achieve quite a bit. Southwest Airline employees are one of the most motivated and productive work force in the industry and this results in happier customers as well. The airline attained success which is primarily due to its highly motivated and productive workforce. They have fewer employees per aircraft, fly fewer passengers per employee and have more available seat miles per employee. Because of the highly motivated workforce its turnaround time is much less compared to competitors who also enhance its productivity in terms of equipment utilization. SWA has achieved the Triple Crown (best on-time performance, fewest lost bags, and fewest passenger complaints-in the same month) nine times, which is a rare feat. Happy employees translate into happy customers. The other thing is Unions. Unions have always been a problem in the airline Industry. But for Southwest airlines they are actually a strength. SWA is a case study where Union and the management are not adversaries but partners in a successful business.
The Hierarchy of SWA is also different. ...
In most organizations, management is segregated from line workers and both make their money in different ways which are contrary to each other. While workers make more money by working overtime and longer hours, management make their money by increasing profit , which often involve cutting working hours and laying off line workers. But in SWA everybody makes money if they work longer hours and everybody makes money if the company is profitable.
A Brief Study of First Break all the rules in the context of SWA:
"The Book First Break all the rules was a scholarly research with far reaching conclusions. We now try to link the key ideas from the book to the SWA way. The key ideas were condensed in a summary by Regine P. Azurin and Yvette Pantilla
The best managers reject conventional wisdom.
There is nothing conventional about how SWA operates. SWA if anything is totally different from all other airlines.
The best managers treat every employee as an individual.
SWA has a clear cut philosophy in this regard. Each employee is an essential and individual cog in the SWA success story.
The best managers never try to fix weaknesses; instead they focus on strengthsand talent.
SWA has some real constraints as most airlines do. SWA does not try to fix that what can't be fixed. But offers best, what it can do best.
The best managers know they are on stage everyday. They know their people are watching every move they make.
SWA philosophy of managers itself entails leading from the front. A manager can work the counter just as easily as put together a boardroom presentation.
Measuring employee satisfaction is vital information for your investors.
SWA employees always record high level of satisfactions and that is reflected in the stock prices of SWA. ...
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(“Southwest Airlines Case Study Example | Topics and Well Written Essays - 1750 words”, n.d.)
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(Southwest Airlines Case Study Example | Topics and Well Written Essays - 1750 Words)
“Southwest Airlines Case Study Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.net/miscellaneous/280956-southwest-airlines.
airline industry has led to affect the business of Southeast airline. The major areas of concern for Southwest airline was decreasing profit and market share. During 1989, Southwest Airline was one of the leading airline services providers but the new entrants like United Airlines, Northwest Airline, and American Airline etc became vital threats to Southwest Airline.
Southwest Airlines Introduction The Southwest Airlines was established in 1966, a brainchild of Rollin King, an entrepreneur from San Antonio (Thompson & Gamble, 2011). The business was formally incorporated in 1967 with Herb Kelleher as a shareholder. The business was established to offer reliable, affordable, and convenient air transport services to customers, mainly business people who needed to travel between Houston, San Antonio and Dallas.
Financial Performance 7 3.1 Liquidity ratio 9 3.2 Solvency Ratio 10 3.3 Profitability Ratio 11 3.4 Efficiency ratio 13 3.5 Comparison with Competitors 14 4. Key Performance Indicators 15 Advancement of security and culture of Southwest 15 Value the employees 16 Make a place in the minds and hearts of the customers 16 Use Resources Sensibly 16 5.
In the company's website, one would clearly trace the history of the said company and how it succeeded. There, it states that "The airline began service June 18, 1971, with flights to Houston, Dallas, and San Antonio. Southwest topped the monthly domestic originating passenger rankings for the first time in May 2003.
The paper also attempts to present an in-depth analysis of the strategic alternatives available to the airline and make a suitable recommendation for improving the operational performance of the company. The study about Southwest Airlines becomes interesting in view of the fact that the airline has been profitable for a continuous period of 36 years.
Southwest currently operates only Boeing 737. Today, the company's operating fleet was composed of 537 Boeing 737 aircraft, each having 189 seats, with an average age of approximately 10.5 years. The average aircraft trip length is 639 miles with an average duration of one hour and 54 minutes.
In June 2011 it was announced the biggest airline in the U.S. on the basis of the number of domestic passengers that it serves.
Since the institution of the Airline deregulation Act, of 1978, Southwest airline has experienced low profits for a number of years. This is
The airlines charged then $20 for one-way trip in comparison to $27 charged by other carriers. The SA was known for its famous tag line: "Now there’s Somebody Else up There Who Loves You" (394). Perhaps, that was the reason that routes between Dallas, Houston and San
3 Pages(750 words)Case Study
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