Essay about Southwest Airlines' Success

805 Words4 Pages
Southwest Airlines has been in business for more than thirty years. Presently, operating airplanes and flight services is very competitive, and in most cases, is not cost-effective industry; however, Southwest Airlines has been consistently profitable company, which is successfully designed with the intention of achieving high growth. According to an interview of Southwest Airlines former CEO, Herb Kelleher, when he visited Graduate School of Business at Stanford University, despite all airline industry challenges, the “low-fare airline has grown into the third largest in the world as measured by the number of passengers carried, and the largest with destinations exclusively in the United States” (2006). To the customers, Southwest…show more content…
They truly enjoy the outstanding environment, company support, encouragement, and good benefits; thus, motivated by these factors, the employees encourage to rather look for internal promotions than for outside-of-company opprtunities.
Another key success factor for Southwest has been the company approach toward innovation. In his interview, Herb Kelleher talked about encouragement and support to the employees and management out-of-the box thinking. The management welcomes new ideas from everyone at the company and takes in consideration all suggested improvements. The point of this exercise is to “never spoil an idea, because when you spoil an idea, you ensure that you’ll never get another one from that person” (Kelleher, 2006). As the result of the open communication channel between the managers, leaders and employees, Southwest was the first major airline to invent a Ticketless travel alternative, and offered Ticketless travel through the company’s website. “For 2005, 93% of Southwest’s customers chose the Ticketless travel option and apx. 65% of Southwest’s passenger revenues came through its Internet site” (TheStreet.com Ratings, 2009). Statisticaly, the cost per booking via company’s website is six time less than through a travel representative; therefore, booking through Internet turned to be a big money saver invention for the company.
In addition, what also makes Southwest Airlines to stand out are the major lines of business. The company did not apply
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