Southwest Airlines Presentation

7/28/2019 Southwest Airlines Presentation

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LOGO

Sou thwest A ir lines

in Bal timore


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AGENDA

Southwest Airlines at BWI

Southwest & BWI Problems

Issues highlighted by Flight #110

Recommendations

Summary


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OVERVIEW, SW A IRLINES

Formed 1967, Dallas, TX

Serves 58 destinations (2001)

Low cost domestic flights

Regional, short hop focus

Rapid growth


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RAPIDGROWTH

$625 M$474 M$433 M

1998 1999 2000

Net Income


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THECONCEPT- ECONOMY

TRAVEL


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COMPETITIVEADVANTAGES

Low cost fares

Frequent "point to point" flights

Single flight platform fleet

Empowered decisions

Fast turnaround

Cohesive team culture


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OVERVIEW, BWI

24th busiest US Airport

SW Airlines largest carrier

Serves economy airlines

Regional hub for east coast

Upcoming expansion


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SOUTHWESTA IRLINEPROBLEMS

Management of connecting flights

Understaffed

Multiple booking policy


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UNDERSTAFFED


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BWI PROBLEMS

Human Resources Problem

Customer Service Problem

Capacity Problem

Passenger Connection Problem


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HUMANRESOURCEPROBLEMS

High Overtime

High Staff Turnover

Inexperienced Workforce

Shortage of Employees

BWISWA


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Cus tomer Service Prob lem

Baggage Mishandled Customer Complaints


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BAGGAGEMISHANDLED

BWI

SWA


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CUSTOMERCOMPLAINTS

BWI SWA


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CAPACITYPROBLEM

Result from increased flights

Gates at / over capacity

Bag sorting facilities over capacity


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PASSENGERCONNECTION

PROBLEM

Increasing volume of passenger connections

More than average connection numbers in BWI

One of SWs biggest transfer stations

Result from high rate of transfer city


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ISSUESFROMFLIGHT#110

Flights schedule

Turnaround

Baggages

FLIGHT110


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FLIGHTSSCHEDULE

F110F232F1819

B13 B15 B17

Original schedule: 8:40 8:15

40 min

25 min

Reschedule: 9:05 8:55

6 Persons

35 min


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Turnaround

Unloading (930)Loading (?)

Fuel (


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Baggage Mishand led

1. Employees

Communicate with each other

2. System

Hardcopy


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PROBLEMS, SWA

Management of connecting flights

Understaffed

Multiple bookings policy


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BWI operations lagging behind others

Changing multiple booking policyExpansion through merger and acquisition

RECOMMENDATIONS, SWA

Longer lag btwn arrival & departure

Recommend 5 changes to BWI operation


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PROBLEMSUMMARY, BWI

Capacity problems

Human Resources Problem

Customer Service Problem

Passenger Connection Problem


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RECOMMENDATIONS, BWI

Hire more people to avoid overtime

Increase flight frequency

Bonus and rewards to lower employeeturnover

Balance day and night shifts

Improve communication betweendepartments


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BWI operations lagging behind SWA others

Changing multiple booking policy3 recommendations for SWA

SUMMARY

SW Air excellent business model

5 recommendations to improve BWI


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HIGHOVERTIME

BWISWA

U & R


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UTILIZATION& REVENUE

COMPARISON

RPM=Revenue per Passenger per mile


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DIAGRAM

Reality

Identity

Creativity

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DIAGRAM

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DIAGRAM

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ThemeGallery is aDesign Digital Content &Contents mall developedby Guild Design Inc.

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RAPIDGROWTH, NETINCOME

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2003 2004 2005 2006

30

50

70

120


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0% 20% 40% 60% 80% 100%

18.5%

17.5%

8.7%

23.6%

63.6%

84.3%



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DIAGRAM


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Southwest Airlines Presentation