SouthWest Airlines

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I managed to locate a wealth of information for you to consider. If your instructor asked for you to use the book suggested, you might consider incorporating some information from that book as well. I also attached an article and a timeline, some of which this response is drawn. I also provided other links at the end of this response.

RESPONSE:

1. Please assist. I need to compile enough information for a case study on SouthWest Airlines. I need a minimum of 5 pages of information. It should be some aspect of SouthWest Airlines organizational processes to discuss and the case study should end with some recommendations for them. I need at least 2 other references. The case study should be from the book "NUTS!"

In 1967, Southwest's Cofounders met to discuss their idea for a new airline that would bring the Freedom to Fly to America, and when Rollin King finished sketching out the idea on a cocktail napkin, Herb Kelleher told him, "Rollin, you're crazy. Let's do it!" Much the same thing happened when they presented the idea for their 2006 corporate blog to Southwest's Leaders. They thought the team was crazy-but they're doing it! (http://www.blogsouthwest.com/about) In other words, Rollin King and Herb Kelleher had a vision of a different kind of airline. They began with one simple notion: 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. And you know what? They were right. (http://www.southwest.com/about_swa/airborne.html).

Out of this simple notion emerged the Southwest Airlines; Mission Statement: "Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit" (http://www.southwest.com/about_swa/mission.html).

Facts about SouthWest Airlines:

? The first major airline to fly a single type of aircraft (Boeing 737s)
? The first major airline to offer ticketless travel system wide including a frequent flier program based on number of trips and not number of miles flown.
? The first airline to offer a profit-sharing program to its Employees (instituted in 1973).
? The first major airline to develop a Web site and offer online booking. In 2001, about 40 percent ($2.1 billion) of its passenger revenue was generated through online bookings at www.southwest.com. Southwest's cost per booking via the Internet is about $1, compared to a cost per booking through travel agents of $6 to $8 (from attached article, http://ezinearticles.com/?Southwest-Airlines-Operations---A-Strategic-Perspective&id=111277).
? Innovative Management style and employee relations are highly regarded
? The first in the industry to launch a corporate blog (2006). (http://rd2inc.com/work/southwest-airlines/case-study/what-we-did/)
? Introduced a recent green initiative (http://www.blogsouthwest.com/blog/destination-rnp).

Operations Analysis: Competitive Advantage and Leveraging

So, what does SouthWest do to be have both success and profitability? - Mainly, SouthWest Airlines prospered by offering low fares to leisure travelers whose only other affordable option was a car trip. It flew primarily to America's secondary airports, where costs are low and productivity is high because incoming planes can land, drop off passengers, take on the next group and get back in the air quickly. "We're very dependent on business travelers, so we're not a leisure airline like some of our smaller competitors are," chief executive Gary Kelly countered in an interview. He said company surveys show that in normal times, at least 40 percent of his customers are traveling on business (http://www.denverpost.com/business/ci_12709649).

Southwest's key competitive advantages are as follows: human resource practices and work culture, low operational costs and higher operational efficiency and award winning customer service.

? Customer Service = More Customers
? Leveraging System = Competitive Advantage
? High Utilization = Low Cost (http://ocw.mit.edu/NR/rdonlyres/Sloan-School-of-Management/15-761Operations-ManagementSummer2002/7370C22B-1762-4B76-BE28-775A0987C8AC/0/lec25swa.pdf)

Let's look at the first two competitive advantages to consider: Employee relations/culture and operational efficiency.

First and foremost it was the unique SouthWest's Business Model has been extremely successfu; and then employee relations and operational efficiency.

1. SouthWest Business Model

? Customers -who are they? Short haul business travelers who want to get there when they want. In other words offer several flight time choices between cities in close proximity.Families who decided to take a short flight rather than driving their car the same distance.
? Low Cost - Average one-way fare is $83 and it supplies 90% of all discount fares; concerned with keeping cost low to increase profitability rather than increase market share; understand specific market niche.
? Fly Short Distances. Southwest does not use a hub-and-spoke system, but rather flies point to point; average flight last just over an hour.
? Have Fun!! Typical flight attendant spiel: "Please pay attention to the flight attendant at the front of the ...