Southwest Airlines Case Study

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1. The Southwest business model is that it uses one type of plan only. That is it uses only Boeing 737. This helps the company save money in maintenance costs. Further, it reduces the turnaround time for aircraft and allows the company to use its aircraft more than its competitors. This helps reduce costs and benefits its customers. Also, Southwest offers only gate to gate flight paths or point to point flights. Most flights are non-stop direct to the destination of the customer(1). By eliminating first class, in-flight meals, and drink options, Southwest manages to keep its cabins clean and reduce turnover time. The company has managed its fuel cost efficiently and has implemented its strategy strongly. The business model is effective because it helps reduce costs, offer lowest fares to customers on several routes, and earn attractive profits for its shareholders. The evidence of the success of its model is that it is in a superior financial position, has competitive cost advantage, and has met its commitment to return value to its shareholders. Southwest has been successful because it has successfully implemented its strategy over a period of time. It has offered value proposition and has given no-frills service to its customers. Southwest Airlines has successfully implemented a low cost model. It has kept its fuel costs low through hedging. Further, its point to point flight model helps it offer lower average flight time. It ...