Southwest Airlines Golden Rule

Back in March of 1967, Southwest Airlines was first founded under a different name, Air Southwest Company, by Rollin King and Herb Kelleher . With his own funds of $500 thousand, Kelleher filed an application with the Texas Aeronautics Commission for the right to fly commercial airplanes in the state of Texas. In February 20th of 1968, the Texas Aeronautics Commission voted unanimously, granting Air Southwest a certificate of public convenience and necessity. The following day, Braniff, Trans Texas (later known as Texas International), and Continental Airlines obtained a restraining order from Travis County District, prohibiting the certificate to be delivered to Air Southwest Company . Air Southwest Company tried to file appeal with the Austin State District Court and the Third Court of Civil Appeals. Both courts ruled against Air Southwest, forcing Herb Kelleher to appeal with the Texas Supreme Court. The Texas Supreme Court unanimously voted to overturn the lower court’s decisions and ruled in favor of Air Southwest . In December of 1970, the United States Supreme Court denied the appeal by Braniff and Texas International to remove Air Southwest certification . In 1983, Winifred Barnum, a children’s author and illustrator, wrote a children’s book based on Southwest’s legal fight called Gumwrappers and Goggle. In Jan 1st of 1971, Lamar Muse joined Air Southwest as the President. In March of 1971, Lamar Muse raised $1.25 million for the company by selling promissory

The philosophical culture adopted by Southwest Airlines towards its employees is different from that of the other airlines. Southwest Airlines treats its employees with higher dignity and integrity. As we can see from what Gould wrote, “Organizations are successful when they can secure organizational commitment from the employees, and empower the employees to be a part of the improvement processes for the company. Team effort and interdepartmental partnerships are crucial to the successful and effective implementation of process improvement plans.” (p.6, 2008) The employees at Southwest are given equal treatment and respect as the passengers. They are given the opportunity for education which they can use to benefit from in order to qualify for higher promotion within the Southwest Airlines Company.

What makes Delta airlines unique is their participation within charitable groups. The employees at Delta Airlines list as one of the top donors of blood to the American Red Cross (Delta, 2016). The employees of Delta also partnered up with a Humanitarian group to help build homes for families as well as volunteered their time through community sponsored events that Delta has had. United way has also been funded by Delta (Delta, 2016). These are just some of the charitable things that Delta has contributed to. Their client base it simple; meaning there client based is for anyone who chooses to use their services. They have a variety of options for their customers when purchasing tickets such as flying economy class, business class and or first class. Each class comes with a certain advantage such as flying first class, you have more seat space and along with accelerated check in and baggage handling. Delta Airlines like others have many competitors. One of their main competitors who is trying to thrive within the industry is

Air travel has its ups and down, as does basically any type of travel. However, Southwest Airlines has always been my favorite airline to fly. As a young single who loved traveling, I found their fares and schedules to be the most convenient for my taste. I always appreciated the staff’s sense of humor, and it really never bothered me where I sat, so I didn’t mind the “A, B, C” boarding groups as opposed to assigned seats: I actually appreciated the freedom of choice. It wasn’t until after a couple of marketing classes that I realized the things I preferred about Southwest were intentional marketing strategies that the company used to differentiate

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.

"Run the best airline in terms of operating performance. Deliver on customer promises so that the customer decides to fly with Delta first, and before anyone else. Run the airline to achieve the proper payers commensurate with the service that they provide. Delta really seems like they want a go-to airline in the marketplace for primarily business travelers, but also leisure travelers as well. And do all that in a safe and highly profitable manner."

How has SWA (a) responded to the “Shuttle By United” initiative (half page 5 points); and (b) what assessments can be made about SWA’s market and financial position on competitive routes based on 1994 4th quarter results (half page 5 points)?

Delta is the 2nd largest airline company, holding 17% of the domestic market share (RITA, 2015). Southwest, the largest airline company, has 17.8% of the domestic market share (RITA, 2015). Limited suppliers is mildly unattractive, but is expected to become neutral for Delta. Product differentiation is neutral and expected to become mildly attractive. Delta will become more popular again because of peoples willingness to pay for a better product. Delta is a higher quality compared to Southwest airlines. While flying with Delta, the customer will get the opportunity to choose a desired seat, and will receive refreshments (Main Cabin, 2015). Southwest does not serve snacks on flights, but when flying on Delta, if the trip is longer than 900 miles, passenger will receive the snacks (Main Cabin, 2015). Rivalry is mildly attractive but will become neutral. Switching cost is neutral and will become mildly unattractive. Since the decline of the economy consumers have become more frugal. They are looking for the best deal they can find. Quality of substitutes is mildly unattractive and will remain mildly

Southwest Airlines represents a rather unique organizational force that has driven the company to success since its inception in 1971. One of the most unique features about the organizational structure is that it is largely decentralized and employees are openly welcomed to express their opinions on a wide range of organizational issues. However, despite the "hands off" management strategy, the company consistently ranks as one of the top airlines in regards to customer complaints; in 2008, for example, the company received 0.25 complaints on average for every one hundred thousand passengers who used the aviation services (Triangle Business Journal, 2009). This analysis will look at some of the organizational factors that have contributed to the success of Southwest Airlines over the course of the last few decades.

With Delta Airlines being one of the most successful airlines in the industry it currently has its

Southwest Airlines is excellent in planning out their long-term goals. The above SWOT analysis proved that the company is successfully carrying out the cost leadership strategy to manipulate their competitors and boost up their company. Their mission in providing Low Fare cost is one of the best strategy that they can have to increase their market share, but not just that it also put a significant increase in the demand of air travel. Southwest Airline rapid rewards program is brilliant, so they should continue and expand it even more.

Southwest Airlines is known as one of the most caring and considerate companies. Since 1971, Southwest Airlines has prided itself in their exemplary customer satisfaction and family like approach to customers. American Airlines excels in many areas, but the ones that will be discussed are emotional intelligence, and cultural organization. More often than not, developing these areas are easier said than done.

When on vacation, the first people you deal with are the airline companies, yes this is the dreaded trip to the airport. Way to often people have their happy vacations ruined by inconsistent and unreliable customer service, making them late for flights because of long lines, slow service, and unreliable technology that is difficult to use. However, Southwest airlines is one company that is standing out above all others. Known for their outstanding customer service and “Bags Fly Free” campaign, Southwest has held their ground against rising prices in airline travel and continued to expand its reaches while at the same time attracting many satisfied customers. Southwest Airlines was founded on June 18, 1971 by Rollen King and Herb Kellener. The very same year, Southwest began its flights servicing Dallas, Houston, and San Antonio. Southwest quickly climbed the ranks within airline the industry and became the fifth largest US air carrier by 1998, carrying an average of 50 million passengers a year across the United States. From then on, Southwest soared above the rest of the mid-range air carriers, and continues to do so to this day. Southwest quickly became known for its innovation when it comes to customer service and satisfaction, and it is still well known today for its simple and convenient customer service. Southwest has also been deeply involved when it comes to their social responsibilities, taking action to be ecofriendly whenever, and wherever possible. (Avstop)

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

As with all airlines, Delta’s recent performance has been significantly impacted by industry shifts and external events. Terrorist attacks and escalating costs have significantly impacted Delta’s profitability in recent history (Rivkin 4). The company has also been losing valuable market share to the low-cost carrier Southwest Airlines throughout the southeast and specifically in the lucrative Florida market (Rivkin 8). JetBlue also began encroaching on key Delta routes, and this seems only likely to increase (Rivkin 9). Despite this, Delta has still performed better than any other legacy carrier (Rivkin 8). Still, recent history has brought several changes to this legacy carrier, and the company has turned its attention towards new competitive strategies.