Southwest Airlines : The World's Leading Low Cost Carrier

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Southwest Airlines Case Study Southwest Airlines is the world’s leading low-cost carrier. This company is about providing the best, simple, and most efficient customer experience at the lowest fares in the industry. Southwest’s used their great customer service, their low pricing, and their unbeatable staff to create a new type of airline. Many different companies noticed that Southwest was taking off. They used a couple different strategies to accomplish this. One of the strategies Southwest used was utilizing less congested airports. This allowed them to reduce delays and increase efficiency as well as convenience for customers. Another strategy was using only one type of plane to reduce maintenance costs and increase standardization. The third strategy was to use a point-to-point system. This helped reduce turn-around time and customers enjoyed not having to connect flights. Fourth, they were adamant about creating an unforgettable experience for the consumer. They hired a staff with great personality and attitude. Finally, they hedged against fuel costs in order to keep cash flows and profitability stable as prices fluctuated. The airline industry is becoming extremely saturated and competitive. Fares are getting lower and new airlines are forming in order to combat the increase in operating costs. In order for Southwest to keep with its competitors, the company must stop relying on just their low prices and customer service. They must differentiate themselves for
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