Southwest Airlines : The World 's Largest Low Cost Carrier

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).

Bargaining Power of Customers (high)- Customers has several options when it comes to flying. But the main attraction to customers are low prices and Southwest makes it known that they have some of the lowest airfares. The only way Southwest can take back the power is by offering direct flights to cities that other airliners do not offer. Besides the small occurrence of having a direct flight to a city that no other airline has, Southwest

Southwest fleet is made up of mainly Boeing 737 fuel efficient airplanes which spent an average 11 hours in the air daily

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.

Today Southwest Airlines is the biggest domestic passenger carrier in the United States of America operating more than 3,400 flights a day. They provide service to 93 cities and 5 countries internationally. Last year Southwest Airlines, “Enplaned approximately 136 million Customers (About Southwest). The airline has grown since it’s first years flying out of Love Field in Dallas, Texas. In the beginning, Southwest provided flight service to only three Texas cities in 1971. One of Southwest Airlines’ early advertisements was a double page ad that ran in Dallas newspapers during May announcing their first flight on June 18, 1971 (Lusk). This advertisement introducing a new airline would soon revolutionize the airline industry and create the new category, of low cost carrier, to the world.

Southwest Airlines Southwest is a major player in the airline industry, which employs nearly 35,000 individuals. According to an article, (Hollis, 2003), Southwest Airlines has taken a different approach to building interactively relationships with the company, with employees, and with its customers to ensure the success of the business. As a result, Southwest has sustained an enhanced growth and profitability when most airlines struggle to avoid bankruptcy. Fritz Petree, Senior Manager Career Development Services, states, “Southwest philosophy is to hire for attitude and train for skill” (Hollis, 2003, p. 2). Southwest has successfully launched Virtual

Since 1973, Southwest has been profitable even year. Their strategy included many factors like offering no-frills, short-haul, high-frequency, point-to-point, and low-fair service. Using point-to-point because they acquired only one model of the plane then figured out the latest way to turn an airplane around, using less busy airports, alongside with no meals provided or assigned seating. Southwest also did not have an assigned seat for their passengers but rather given the boarding numbers at the gate eliminating the double-booked seats. Further through the case, it

During the 1990s Southwest achieved the highest average revenue and income growth rate and return on total assets and stockholders’ equity among all U.S. air carriers. Unfortunately in the fourth quarter of 1994 (October 1 – December 31, 1994) net income fell 47 percent compared to fourth quarter 1993. Southwest had not reported earning less than the same quarter a year earlier since the third quarter 1991. By the end of the fourth quarter 1994 Southwest’s stock had reached a 52-week low on the New York Stock Exchange closing at $15.75 which was down

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 has been in business for over 34 years. This airline strives on their customer service and the efficiency of their operations. They focus on the customer’s overall experience by making flights enjoyable. They achieve this by training their employees to understand the needs of the customer. The airline focuses on the customer enjoying their flight at an affordable price.

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

Southwest Airlines provides short haul, high frequency, point-to-point, low-fare services to and from 58 cities across the United States. The company is known for its low-cost fares and superior customer service in the airline industry. The company was started in 1971 with a motto still lived by today, "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 your airline." This motto has been effective for the company because they recently reported their 58th straight quarterly profit.

The turn-around time can be prolonged due to weather delays, security delays or technical difficulties. The weather is a factor that the airline cannot control, but the delay can be predicted and prevented with alternative flight plans. Southwest airlines can experience security delays like any other airlines and the company has little influence on this factor. On the other hand, the technical problems can be divided on the ones that can be controlled by the company, and on technical delays caused by the national aviation system. The company can work on prevention of the technical types of delays with different technological improvements and employee trainings. The objective for the company is to have the capability to adapt its schedule to these factors and reduce their impact on the company’s utilization.

Consequently, Southwest Airlines’ Vice President of ground operations Bill Franklin, implemented the method of “10-turn around” to lessen the customer service wait time (Weekend All Things considered 2015). Alternatively, a key turning point occurred when Southwest discontinued its amenities to Houston’s new Intercontinental Airport and relocated to older Hobby Airport, which was near to the city’s downtown. Immediately, the passenger ridership doubled (Murtagh, 2011).