History behind the “Heart”
Southwest Airlines, often recognized by its heart-shaped logo, was founded in 1967 by Rollin King and Herb Kelleher. Initially, the airline was established, and only flew within, the state of Texas. The Wright amendment, which was a federal law that governed air traffic in Dallas, originally limited nonstop flights to within Texas or its neighboring states. In order to better accommodate its customers and employees, Southwest began a lawsuit in the early 90’s to overturn the amendment. On October 13, 2014, Southwest was granted permission for “freedom of flying”; adding new nonstop flights to various states across the country. They employ approximately 43,000 employees and service more than 100 million customers annually (“About Southwest”).
The company’s success is founded on two primary goals: providing exemplary customer service and helping its employees do so by giving them the same respect and accommodations. As the aviation transportation landscape has slowly changed, so has Southwest. Whereas they initially focused on “no frills” flying by eliminating frivolous amenities, they have slowly transitioned into a more competitive airline by adopting programs aimed to tailor customer experience. The Southwest of 2014 is different from the Southwest Airlines of the past, but their strategic plans have remained focused on customer service and employee retention.
Situation Analysis
Current Organizational Mission
Southwest’s mission statement is
People – One of the many things good about Southwest Airlines is that the kinds of people who are heroes of the organization are people who care and go out of their way to help the customers. They’re the ones who are celebrated and held up as shining examples. Additionally, high levels of satisfaction among employees can be attributed to Southwest employee policy. Happy employees can provide high quality service and bring more customers back. To reinforce the culture of hard work, high-energy, fun, local autonomy, and creativity, the company provided continuous education program to employees. If you can help someone out or brighten someone’s day, be it a co-worker or a passenger, you’re doing your job well.
The target demographic for Southwest is very broad. The fact the airline has a brand that appeals to price-conscious travelers who do not mind the airline’s no-frills philosophy means it attracts lots of small business owners, young adults, middle-class families, and those who are traveling a short distance. Southwest operates a simplified airline to keep costs down. It only operates one type of aircraft, and its no-frills plan includes no assigned seats or class seating, no meals, and no onboard movies. The company has a strong emphasis on customer service and a differentiation strategy to keep customers happy and loyal. When hiring for customer service positions within the organization, Southwest focuses on attitudes rather than skills and encourages peer hiring. This strategy helps the company identify those who fit the organizational culture and who are most likely to further the company’s philosophy of
Southwest Airlines is a major US airline established in 1967 that services a multitude of cities in all 50 states and beyond. The company is known for its outstanding quality in providing services and it 's cost effective ticket prices to its many passengers throughout the nation. This airline is based in the southwestern United States, in the city of Dallas Texas, and due to the tremendous number of airplanes that it has and the timely service that it provides to its passengers, this airline services more US passengers than any other airline. This airline also has the largest fleet of planes of any economical or low-cost airline service in the world and employees more than 45,000.
Southwest Airlines (SWA) maintained a low-cost, low-price and no frills strategy. The small Texas carrier began as a concept, its business plan detailed on a cocktail napkin in 1971 and grew into the nation’s fourth largest airline. Known as an innovator with low operating costs, dominating smaller airports, with a humorous customer service, SWA saw its 40th profitable year in 2013. Like all companies, SWA underwent leadership changes in 2001, and said goodbye to the company’s founder in 2008. Unfortunately, the changes in leadership were not the only changes; the organization proceeded to alter their beliefs and activities.
Southwest Airlines original name was Air Southwest in 1967 in Dallas, Texas, before the change of the name to Southwest Airlines in 1971. They were faced with battles due to legal issues with Dallas and Love field, because of the Wright Amendment, but the come to an agreement to allow 4 states to connect to Texas. Southwest bought 129 new planes, because of the expansion of the company growth, which currently have 141 planes that enhance the growth of the company because of shorter flights (Gimbel, 2005). Southwest was started in 1971, by Rollin King and Herb Kelleher, which released it first flight from Dallas Love Field that is located in Houston and San Antonio Texas. The passengers look for an airline services that can get them to their destination at a cheap price. Majority of the passenger are looking for an airline service that will eliminate layovers and multiple stops as possible.
The benefits that have accrued to Southwest Airlines and its employees can be viewed from various perspectives. The unique culture with respect to targeting or concentrating to provide air services to the locals is one of the benefits that has accrued
Southwest airlines began in 1967 as Air Southwest Co. Based in Dallas. They began serving three major cities in Texas, with only three Boeing 737 aircrafts. March 29th, 1971 Air Southwest Co. changed its name to Southwest Airlines Co. The company began service on June 18, 1971 from Love Field in Dallas to Houston and San Antonio. Founders Rollin King and Herb Kelleher were inspired by their location to create an airline that was focused on the people. The LUV airline prides itself with exceptional employees and “no frill” customer service. CEO, Gary Kelly states, “After all, we like to say that we are not a Company of planes; we are a Company of People.” Southwest is known to value their employees just as equally as their customers.
At Southwest Airlines, the company’s business strategy has a positive effect on the training they provide to their employees. Southwest Airlines is a Texas based airline that started up in 1971 (Corporate Fact Sheet). Over the years the airline has been recognized for its outstanding customer service and its low airfare fees. Due to their excellent customer service, the company has been ranked number one in customer satisfaction in 2013 by the U.S Department of Transportation. In. 2015, Southwest airlines was recognized as one of the Best Places to Work in the Glassdoor Employees’ Choice Award. The reason that Southwest airlines is recognized for all these great things is because they obtain a good organizational control over the airline.
Southwest Airlines is a passenger airline company that arranges and provides scheduled flights for passenger and transportation freight services. The company mainly provides, low-fare, point-to-point services all over the US and near-international markets. The headquarters is located in Dallas, Texas and as of December 2014, the company employed over 46,278 people. The company was founded by Rollin King and Herb Kelleher in 1971. Southwest was the first airline to introduce the frequent mile program. This took place in the mid 1980’s. This type of program allowed passengers to add up traveled miles to use later as credit on a future airline ticket. The traveled miles would add up and would also reduce the price of a ticket. Southwest created the idea of senior discount, fun fares and the fun packs. These were perks that attracted people from different age groups. When Southwest originally was incorporated, the idea was to operate in three cities in Texas, but after taking over Morris Air and TranStar in 1987, this gave them a cutting advantage in the airline industry.
Southwest Airlines' strong organizational culture is reflected in its mission statement "dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit" (Southwest, 2012). Southwest serves not only as a prime example of a company that excels in customer service and profitability, but as one that has utilized employee development as a means to meet these ends. Southwest makes a strong commitment to foster ongoing relationships with human resources. They demand that their employees are responsible members, however
Just looking at Southwest’s operational issues does not tell the whole story of the company’s success. They were unique in that they flew only one type of aircraft, which minimized maintenance concerns, and they used smaller less congested airports. They also eliminated meal service, paper boarding passes, and reserved seating which freed the staff to focus on the more important issues of timeliness and turning the plane quickly and efficiently. But in addition to these new operational techniques, it was the “Southwest Spirit” of customer service that set the airline apart from their competitors from the beginning. And that spirit started at the top and permeated throughout the organization. In fact, Southwest developed a culture of valuing people. A culture that included not only valuing the customers they served, but of the employees who comprise the southwest community or family as it became known.
Southwest is the largest domestic carrier in the United States with the corporate headquarters located at Love Field, Texas. November 1, 2009, Southwest flew to 68 cities in 35 states, with 438 nonstop city pairs with more than 3,300 flights a day.
The management style of Southwest airline is characterized by how greatly it takes care of its employees’ well-being. The management considers it as a mean to achieve higher customer satisfaction: “Keep employees happy, then they will keep customers happy”.
This proposal addresses the needed steps to be taken in order for Southwest Airlines to see continued growth in the airline industry. Southwest Airlines has been able to remain one of the most profitable airlines in the industry for an extended period of time. Even with the hindrance of the 2001 terrorist attacks involving airplanes and the U.S recession of 2008, Southwest has continued to see strong revenue growth. Meanwhile, other companies were experiencing major losses and in some cases folding. Southwest Airlines has capitalized on the company’s strength of being the top low cost
Southwest Airlines Company (Southwest Airlines or ‘the Company’ SWA) is a passenger airline that provides scheduled passenger and freight transportation services. The Company primarily provides scheduled services throughout the US and near-international markets. It is headquartered in Dallas, Texas and employs 48,000 people and serves over one hundred million customers annually (“Southwest,” 2015). Southwest Airlines has accumulated over forty years of revenue and is one of the supremely flown airlines in the United States of America (Dess, et al, 2014, p. C137). Recognized for dominating the national or domestic airline market, Southwest Airlines’ diligence has built an