Southwest Airlines was formed in 1967 by Rollin King and Herb Kelleher and started service in June of 1971. The airline is headquartered in Dallas, Texas and originally operated flights within the state of Texas. The company has since expanded and now operates flights from Dallas to almost all major cities in the United States and is considered the largest low-cost carrier in the country. “Southwest seeks to offer a travel product that is built around flights targeted to specific demographics and ticket pricing that is simplified so that passengers know
Southwest Airlines was incorporated in 1971 and started its operations with three Boeing 737 aircrafts for three cities of Texas, namely Huston, Dallas and San Antonio. Southwest Airlines earned six Triple Crown awards for the month in the years 1988, 1992, 1993, 1994, 1995 and 1996. It is making profit for last thirty two consecutive years (Carter, Rogers, & Siskins, 2004).Moreover Southwest Airlines is a success story of point to point low cost carrier of United States covering 97 destinations in 42 states with a fleet of 550 Boeing 737 aircrafts and operating 3200 daily flights. Acquisition of AirTran Airways in the year 2011 was also a landmark achievement for the airline. However Southwest Airlines does not offer the traditional services of food on board and special lounges on the airports, none the less it is well placed in the aviation industry (Southwest Airlines). The business is well known for their strategy and approach in hiring capable employees as well as
Southwest Air was originated in 1966 when a group of Texas investors, including Rollin King, M. Lamar Muse, and Herbert D. Kelleher, pooled $560,000 to form the Air Southwest Company, incorporated in 1967 (History of Southwest Airlines, 2015). The company was visualized as a commuter airline serving three cities within Texas: Dallas, Houston, and San Antonio (Zellner W., 2003). In 1968, three competing airlines filed suit to prevent the carrier from getting off the ground, but in 1970 the Supreme Court ruled in favor of Air Southwest. Six months later, after fighting numerous legal battles, changing its name to Southwest Air, and selling stock to the company, the airline began operations on June 18, 1971. By the end of 1971, Southwest possessed four aircraft, offered hourly flights daily between Dallas and Houston, and inaugurated service between San Antonio and Houston, which completed the leg of a triangular route.
Southwest Airlines was incorporated on March 15, 1967, in Texas as Air Southwest Co. by Rollin King and Herb Kelleher. At the time, Southwest Airlines had a fleet of three Boeing 737 aircraft serving Dallas, Houston, and San Antonio. Southwest Airlines Founder Herb Kelleher had faith that by operating within Texas, the airline could escape from federal regulation. According to SWA, on February 21, 1968, Braniff, Trans-Texas and Continental Airlines attained a provisional restraining order from a District Court forbidding the Texas Aeronautics Commission (TAC) from delivering SWA Certificate. On May 13, 1970, the Texas Supreme Court unanimously votes to overturn the lower courts ' findings and rules in favor of Air Southwest (SWA, History by Date, (1)). Conclusively, on December 07, 1970, the United States Supreme Court denies appeal by Braniff and Texas International (TI) of Texas Supreme Court decision (1).
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.
Southwest Airlines was started 45 years ago in 1967 by two entrepreneurs: Herb Keller and Rollin King who had the right vision and culture by which to become successful entrepreneurial leaders. This vision was achieved as Southwest Airlines became the greatest airline in the USA. As a young business in the airlines industry, Southwest Airlines in the initial years confronted very tough situations, and it was due proper planning and with the assistance of its employees that kept Southwest Airlines afloat from sinking. There were already pioneer big companies well established in the airlines industry when Southwest Airlines joined the industry. Some of these companies had a good share of
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.
Southwest Airlines Co., established in 1971 by Rollin King and Herb Kelleher, began its operations with only three Boeing 737 aircrafts. It is headquartered in Dallas, Texas(Hawkins, Misra, & Tang, 2012). Southwest is well known as one of the largest low-cost carriers. With this strategy, the company has dramatically grown up and deeply rooted in the US airline industry. Now, Southwest Airlines Co. operates 633 aircrafts to 93 domestic cities and the highest number of passengers used Southwest Airlines to fly around U.S in Jan 2014 (Hawkins, Misra, & Tang, 2012). To accomplish more than 40th consecutive years of both profitability and competitiveness, Southwest Airlines Company is constantly trying to find the routes to differentiate itself from other domestic carriers (Hawkins, Misra, & Tang, 2012).
Southwest Airline was from an idea on a napkin between Rollin King and Herb Kelleher. Eventually, after a few regulation issues, the airline became official on focusing point-to-point travel between Dallas, Houston, San Antonio. One of the early key success factors which stated in the case, “ In contrast to larger airlines servicing the cities through connecting interstate routes, Southwest would fly directly to each of the cities, and the flights would take roughly one hour each.” Not only Southwest has the advantage of time but also the trust on safety from frequent flyers by having a direct flight to each city. Likewise, within two years (1971-1973) due to price segmentation based on the time of before and after 7 PM along with weekends, the company became profitable.
Southwest Airlines was founded by Rollin King and Herb Kelleher and began in 1971 as Air Southwest, servicing Dallas, Houston and San Antonio (AvStop Online Magazine, n.d.). In its rich history, Southwest Airlines has had many “firsts” in the airline and transportation industry. The airline carrier was the first airlines to offer frequent flyer miles program, which is also the most generous program in the industry (Parnell, 2014). Alongside of the frequent flyer miles, Southwest also offer senior citizen’s discount, fun fare and fun packs, “wanna get away” discounts, no assigned seats, and the most popular two bags fly for free (AvStop Online Magazine, n.d.). One of Southwest major accomplishments is having consecutive profit years since its
The domestic airline industry transports 711 million souls a year. That translates into a staggering $709 billion a year revenue flow (statista.com). One firm, named Southwest Airlines, accounts for 18.3 percent of that market. That 18.3 percent market share places Southwest at the number two spot, behind American Airlines. How does Southwest Airlines successfully compete and thrive in this environment? How do they differentiate themselves from the hoards of legacy carriers? Southwest Airlines encapsulates its strategy in a simple statement: “Meet customers’ short-haul travel needs at fares competitive with the cost of automobile travel (Grant, p.23). As a pioneer in low cost air travel, Southwest has successfully brought down airfares through its short route point-to-point business model, “no-frills” service, single flight strategy, and highly productive employees (Cederholm, 2014). In the following analysis we will investigate Southwest Airlines standing within the industry as a whole and their differentiation models driving success. We will also identify the firm’s competitive advantages as they relate to similar firms in the industry.
Rollin King and Herb Kelleher originally incorporated southwest Airlines to serve three cities in Texas as Air Southwest on March 15, 1967. According to frequently cited legend, King described the concept to Kelleher over dinner by drawing on a paper napkin a triangle symbolizing the routes. (Dallas, Houston, San Antonio)
Southwest Airlines was originally named Air Southwest. It was started on March 15, 1967, by Rollin King and Herb Kelleher. Southwest Airlines is an American low fare airline based in Dallas, Texas. It is also the largest airline in the United States by number of passengers carried domestically in a year and the third largest airline in the world by number of passengers carried. Southwest is also one the most profitable airlines in the world posting a profit for 34 consecutive years.
Southwest Airlines was incorporated in 1967 and founded by Rollin King and Herb Kelleher. However, due to lawsuits, Southwest was unable to fly their first commercial flight until 1971. Southwest founded their business on the quote: "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 yourairline5." Southwest focused on a point-to- point operational system and a low cost pricing strategy that is currently used today. The organization is very centralized due to its point to point emphasis. The centralization of the company requires very strategic route utilization. The company for instance, selects routes to airports with low competition and overall traffic. This allows the company to be more price competitive as competitors are reluctant to venture into less travelled routes. In order to make decisions regarding these routes a centralized organizational structure is warranted. In addition to the centralized organizational structure of Southwest, many committees, teams, and task forces are designed with the sole purpose of reducing waste and cost control. The airline industry is predicated on cost containment, particular those related to fuel and other commodity prices. Task forces are designed with the purpose of providing a sustainable means of reducing costs without a corresponding decline in customer experience. The centralized
Southwest Airlines was created in the late 1960’s by a businessperson Rolling King, and law school graduate Herb Kelleher, who sought a faster travel time between Houston, Dallas, and San Antonio, Texas (Dess, et al., 2014, p. C137). After overcoming all of the antagonism and legal problems of many major airlines, Southwest was able to take its first flight in 1971 (Dess, et al., 2014, p.C137). With a dedication and will power to grow the company, King and Kelleher sought out ways to increase growth.