Southwest Air Line

8/14/2019 Southwest Air Line

1/4

Southwest Air line

IntroductionThe airline industry is an area facing immense competition and with high fuel and maintenance

costs, the margins in this industry are proportionately very low. As a result of this it is an areaundergoing constant consolidation through a number of mergers and acquisitions. This meansevery airline is fighting tooth and nail to stay afloat and not go bankrupt, yet at the same timethey need to find a method to create competencies for itself. On the basis of this it would createcompetitive advantages for itself and become a market leader.

Southwest has been the most successful airline in the United States for 36 years, making itpossible for customers to take advantage of convenient and affordable traveling. It began withonly three aircraft flying to Dallas, Houston and San Antonio, and today it is the largest domesticcarrier operating more than 400 jets to 63 cities. Southwest Airlines Company is an Americanlow-cost airline. Southwest is the largest airline in the world by number of passengers carried peryear (as of 2007).Southwest, the 6th largest U.S. airline by revenue, maintains the third-largest passenger fleet of aircraft among all of the world's commercial airlines. Southwest isheadquartered at 2702 Love Field Drive in the Love Field area ofDallas, Texas, adjacent to LoveField airport.

Mission of the Southwest Air line

The Mission of Southwest Airlines is dedication to the highest quality of Customer Servicedelivered with sense of warmth, friendliness, individual pride, and Company Spirit

Premium features of the Southwest Air lines

Southwest Airlines has carried more customers than any other U.S. airline since August2006 for combined domestic and international passengers according to the U.S.Department of Transportation's Bureau of Transportation Statistics. Southwest Airlines isone of the worlds most profitable airlines, posting a profit for the 36th consecutive yearin January 2009.

Southwest's successful business model involves flying multiple short, quick trips into thesecondary (more efficient and less costly) airports of major markets, and using only oneaircraft type, the Boeing 737.

In an industry where most of the airlines have been forced to either cut backor cease operations, Southwest has sustained its profitability in the face ofsevere obstacles.

As of May 3, 2009, Southwest operates approximately 3,500 flights daily

Southwest air line hold records as

7th Largest Operator of Jets

6th Largest US Airline in Customers
http://en.wikipedia.org/wiki/Low-cost_carrierhttp://en.wikipedia.org/wiki/Airlinehttp://en.wikipedia.org/wiki/List_of_world's_largest_airlines_by_fleethttp://en.wikipedia.org/wiki/List_of_world's_largest_airlines_by_fleethttp://en.wikipedia.org/wiki/Love_Field,_Dallas,_Texas_(neighborhood)http://en.wikipedia.org/wiki/Dallas,_Texashttp://en.wikipedia.org/wiki/Love_Field_airporthttp://en.wikipedia.org/wiki/Love_Field_airporthttp://en.wikipedia.org/wiki/Boeing_737http://en.wikipedia.org/wiki/Low-cost_carrierhttp://en.wikipedia.org/wiki/Airlinehttp://en.wikipedia.org/wiki/List_of_world's_largest_airlines_by_fleethttp://en.wikipedia.org/wiki/List_of_world's_largest_airlines_by_fleethttp://en.wikipedia.org/wiki/Love_Field,_Dallas,_Texas_(neighborhood)http://en.wikipedia.org/wiki/Dallas,_Texashttp://en.wikipedia.org/wiki/Love_Field_airporthttp://en.wikipedia.org/wiki/Love_Field_airporthttp://en.wikipedia.org/wiki/Boeing_737


2/4

5th Largest US Airline in Daily Departures5% behind US Airways20% behind American Airlines

2nd Largest US Airline in domestic

departures

The Largest operator of 737s

Southwest air line is very keen to out source but they says that

We outsource everything except core CompetenciesSouth west air

They earn there core competency through

- Lower cost, in less time, with more features.- Balance between competitive advantage and strategic Vulnerability.

* Competitive Advantage:- Cost, cycle time, quality, performance, and flexibility

But if vulnerability then they have to pay cost

* Vulnerability:- Supply interruption, cost increase, quality, and performance

Competitive advantages

Southwest Airlines' successful and profitable business model has been driven byseveral strategies:

high aircraft utilization

standard fleet charismatic leadership

low fare carrier

excellent customer service practice

attractive frequent flier program

innovative and creative marketing program

performance focused organizational culture

Strategic human resources management and lean operations.

Cost effective air line strategy

Southwest fleet is made up of mainly Boeing 737 fuel efficient airplanes which spentan average 11 hours in the air daily compared to an industry average of 8 hoursand average 10.5 flights per gate versus 4.5 which yields more income by virtue ofmore flight available. By using a single type aircraft, the company has save onmaintenance and training costs, which also has contributed to the company'simmaculate safety record.

Southwest's strategy of short-haul, point-to-point flights using less congestedairports have contributed greatly to the airline's efficiency.


3/4

A significant cost saving factor is the productive and motivated workforce. In 1991,with reference to industry standards, southwest had fewer employees per aircraft(79 versus 131), flew more passengers per employee (2,318 versus 848) and hadmore available seat miles per employee (1,891,082 versus 1,339,995). Unlike otherlarge airlines, Southwest did not buy into the expensive computerized reservationsystems. It sells essentially a product with a higher level of service, offering morefrequent departures, low airline fares with a low frills approach.

South west airline competitor

Fort Worth, TX

Orlando, FL

Seattle, WA

Houston, TX

Atlanta, GA

Denver, CO

Forest Hills, NY

Eagan, MN

Chicago, IL

Tempe, AZ

Future of Southwest Airline

In future the target of the southwest air line is to become

Southwest want to list itself in $7B Corporation in next 5-7 years

By Maintain:

o Low Costs

o Dedication to Employees

o Focus on Customers

350 Airplanes by 2008

35000 People

Concentrate on Business Partnering

SOUTHWEST AIRLINES

THE BEST COMPANY IN AMERICA TO WORK FOR IS SOUTHWEST AIRLINESFORTUNE MAGAZINE JAN. 1998

______________________________________________________________________________


4/4

References- Southwest Airlines - Wikipedia, the free encyclopedia.htm

- Southwest Airlines - Using Human Resources For Competitive Advantage - Research Paper - VintonBrown.htm

- Management 4th Edition - Building Competitive Advantage.htm

Documents

Southwest Air Line