Adjustments to Southwest Airlines Operations

1000 Words4 Pages
Although in recent history Southwest Airline did some adjustments to its operation, company maintained its philosophy and stayed true to its original strategy. When company was established in 1971 its primary focus was to stick to short-haul trips, point-to-point flights, fleet only consisting of Boeing737s, high-frequency flights, low fares, and no international flights. Operating in no frills philosophy resulted in lower fixed cost which enabled Southwest Airlines opportunity for growth and created the competitive advantage.
Southwest Airlines also had only a limited participation in computerized reservation systems, channeling travel agents and customers to book flights through its reservation center. Taking advantage of technology Southwest was the first national carrier to sell seats from a home page on the Internet, reaching 81% online bookings via in 2010.
Pioneering services such as providing the ticketless travel helped efficiency and lowered operational cost. Efforts to lower the fixed cost proved to be a successful formula in achieving competitive edge for Southwest Airlines. Southwest’s success did create numerous imitators. In earlier days, all competitors eventually went under. Today however, several airlines provide stern competition. JetBlue Airways based at JFK Airport and Allegiant Travel, successful and geographically diversified companies. These competitors are in fact able to include both short-haul
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